Bursa Malaysia Securities Publicly Reprimands D’nonce Technology Bhd For Breach Of Main Market Listing Requirements

Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded D’nonce Technology Bhd (DNONCE) for failing to ensure that the announcement dated 31 October 2012 on the fourth quarterly report for the financial year ended (FYE) 31 August 2012 (4^th QR 2012) took into account the adjustments as stated in DNONCE’s announcement dated 9 January 2013.

The failure to take into account the adjustment was in contravention of Paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR) where a listed issuer must ensure that each announcement made 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.

DNONCE 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 August 2013. In addition, DNONCE must ensure all its directors and relevant personnel attend a training programme on compliance with the Main LR pertaining to financial statements. DNONCE is also required to review and ensure the adequacy and effectiveness of its financial reporting function.

While Bursa Malaysia Securities has not found any of DNONCE’s directors to have caused or permitted the breach by DNONCE, Bursa Malaysia Securities wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the Main LR. The Board of Directors at the material time were as follows:

Dato’ Ahmad Ibnihajar
Dato’ Oon Choo Eng @ Oon Choo Khye
Law Kim Choon
Lim Teik Hoe
Wong Thai Sun

Bursa Malaysia Securities views the contravention seriously and has reminded DNONCE and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.

BACKGROUND

DNONCE reported an unaudited profit after taxation and minority interest of RM3.950 million in DNONCE’s 4^th QR 2012, compared to an audited profit after taxation and minority interest of RM2.766 million in DNONCE’s annual audited accounts for the FYE 31 August 2012 which was announced on 27 December 2012. The variance of RM1.184 million between the unaudited and audited results represented a deviation of 30%.

The deviation was mainly due to the oversight and error by DNONCE in recognising the entire 100% profit of a subsidiary for the whole of FYE 31 August 2012 in the 4^th QR 2012 instead of only recognising the profits from the date of completion of the acquisition of the subsidiary i.e. from 6 June 2012 onwards.