.jpg)
Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded Eksons Corporation Berhad (EKSONS) in respect of the company’s announcement of its third quarterly report for the financial period ended 31 December 2014 (QR 31 Dec 2014) on 26 February 2015 which was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
Paragraph 9.16(1)(a) of the Main LR states that 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.
Subsequent to EKSONS’ announcement of the QR 31 Dec 2014 on 26 February 2015, EKSONS had on 28 May 2015 announced that there were errors and amendments to the QR 31 Dec 2014 (Amended QR 31 Dec 2014).
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 including the materiality of the breach and upon completion of due process.
EKSONS is also required to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions. The limited review must be performed by the company’s external auditors for four quarterly reports commencing no later from the quarterly report for the financial period ended 30 September 2017. In addition, EKSONS must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the Main LR pertaining to financial statements.
While Bursa Malaysia Securities has not found any of EKSONS’ directors to have caused or permitted the breach by the company, Bursa Malaysia Securities wishes to highlight and remind 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 of EKSONS at the material time was as follows:-
- Tan Sri Datuk Amar (Dr) Haji Abdul Aziz bin Dato Haji Husain
- Tay Hua Sin
- Sui Uh Hing
- Tang Seng Fatt
- Dr. Lai Mei Ling
- Dato’ Philip Chan Hon Keong
Bursa Malaysia Securities views the contravention seriously as the timely and accurate submission of financial statements to enable investors to make informed investment decisions is one of the fundamental obligations of companies listed on the Official List of Bursa Malaysia Securities.
BACKGROUND
EKSONS had reported an unaudited profit attributable to owners of the parent of RM64.064 million for the cumulative period until 31 December 2014 in the QR 31 Dec 2014 announced on 26 February 2015.
Subsequently, EKSONS had announced an Amended QR 31 Dec 2014 on 28 May 2015 which had reported an unaudited profit attributable to owners of the parent of RM52.228 million for the cumulative period until 31 December 2014.
The difference of RM11.836 million between the QR 31 Dec 2014 announced on 26 February 2015 and amended on 28 May 2015 represented a variance of 18.5%.
The amendment was mainly due to an error made by EKSONS in failing to eliminate inter-company sales when preparing the consolidated financial statements.
