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Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded Brite-Tech Berhad (BTECH) for failing to ensure that BTECH’s announcement dated 29 February 2012 on the fourth quarterly report for the financial period ended 31 December 2011 (4th QR 2011) took into account the adjustments as stated in BTECH’s announcement dated 19 April 2012.
The failure to take into account the adjustments was in contravention of Rule 9.16(1)(a) of the Bursa Malaysia Securities ACE Market Listing Requirements (ACE 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 Rule 16.19(1) of the ACE LR after taking into consideration all facts and circumstances of the matter and upon completion of due process.
BTECH 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 2013. In addition, BTECH must ensure all its directors and relevant personnel attend a training programme on compliance with the ACE LR pertaining to financial statements. BTECH 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 BTECH’s directors to have caused or permitted the breach by BTECH, 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 ACE LR. The Board of Directors at the material time were as follows:
i) Pang Wee See
ii) Tan Boon Kok
iii) Chan Ah Kien
iv) Kan King Choy
v) Ir.Koh Thong How
vi) Dr. Seow Pin Kwong
vii) Cheng Sim Meng
viii) Ng Kok Ann
ix) Yee Oii Pah @ Yee Ooi Wah (Alternate director to Pang Wee See)
Bursa Malaysia Securities views the contravention seriously and has reminded BTECH and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.
BACKGROUND
BTECH reported an unaudited profit after taxation and minority interest of RM1,415,000 in BTECH’s 4th QR 2011, compared to an audited profit after taxation and minority interest of RM3,053,041 in BTECH’s annual audited accounts for the financial year ended 31 December 2011 which was announced on 20 April 2012. The variance of RM1,638,041 between the unaudited and audited results represented a deviation of 116%.
The deviation was mainly due to the oversight by BTECH to take into account the adjustment for the gain arising from fair value adjustment of BTECH’s investment properties amounting to RM1.635 million in accordance with BTECH’s accounting policy and the financial reporting standard.
