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Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded Petrol One Resources Berhad (PETONE), formerly known as Changhuat Corporation Berhad, for failing to take into account the adjustments stated in the company's announcement dated 9 November 2010 (other than the adjustments in respect of the insurance claim amounting to RM0.209 million) when it announced its fourth quarterly report for the financial period ended 30 June 2010 (QR4/2010) on 30 August 2010.
The failure to take the adjustments into account breached paragraph 9.16(1)(a) of the Main Market Listing Requirements (Main LR) where a listed issuer must ensure that each announcement is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
The public reprimand was imposed pursuant to paragraph 16.19(1) of the Main LR after taking into consideration all facts and circumstances of the matter and upon completion of due process.
PETONE is also required to carry out a limited review of its quarterly report submissions. The limited review must be performed by external auditors for four quarterly reports commencing from the quarterly report for the financial period ended 31 March 2012. In addition, PETONE must ensure all its directors and the relevant personnel attend a training programme on compliance with the Main LR pertaining to financial statements and assess the competency, adequacy and effectiveness of its financial reporting function.
While Bursa Securities has not found any of the directors to have caused or permitted the breach, Bursa Securities wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability. The Board of Directors at the material time was as follows:
(i). Lim Lai Huat
(ii). Seah Cheoh Wah
(iii). Cheah Teik Hoe
(iv). Koh Say Kok
(v). YM Raja Halinuddin Bin Raja Halid
(vi). Lee Wei Hong
(vii). Mohamad Reezal Bin Siddiq
(viii). Mohamed Ridzuan Bin Nor Md
(ix). Lim Kian Boon
Bursa Securities views the contravention seriously and reminds PETONE and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.
BACKGROUND
PETONE reported an unaudited profit after taxation and minority interest of RM1,038,000 in its QR4/2010 unaudited results, compared to an audited loss after taxation and minority interest of RM2,699,452 in its annual audited accounts for the financial year ended 30 June 2010. The difference of RM3,737,000 between the unaudited results and the audited results represented a deviation of approximately 360%.
The deviation was mainly due to, amongst others the oversight of the company to provide for depreciation value of vessel at fair value, failure to recognise rebate payable arising from lease agreements in accordance with the accounting standards and under provision of operating expenses and doubtful debts in the QR4/2010.
