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Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded Damansara Realty Berhad (DBHD) in respect of the company’s fourthquarterly report for the financial year ended 31 December 2014 (QR 4/2014) announced on 27 February 2015 which was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR). DBHD had subsequently amended and re-stated its QR 4/2014 as announced on 15 April 2015.
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.
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 impact on DBHD’s share price movement and volume traded after announcement of the QR 4/2014 and amended QR 4/2014 and upon completion of due process.
DBHD 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 2015. In addition, DBHD 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 DBHD’s 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 DBHD at the material time were as follows:-
- Dato’ Ahmad Zahri bin Jamil
- Dato’ Daing A Malek bin Daing A Rahaman
- Syed Omar bin Syed Mohamed
- Zainah binti Mustafa
- Dato’ Ar. Wan Mohammad Khair-il Anuar bin Wan Ahmad
- Dato’ Sohaimi bin Shahadan
- Abdullah bin Md Yusof
- Wan Azman bin Ismail
Bursa Malaysia Securities views the contravention seriously as 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
DBHD had reported an unaudited profit after taxation and minority interest of RM1.324 million in its QR 4/2014 announced on 27 February 2015. However, DBHD had subsequently on 15 April 2015 announced an amended QR 4/2014 which reported an unaudited loss after taxation and minority interest of RM6.08 million. The difference of RM7.404 million between the profit/loss after taxation and minority interest for the QR 4/2014 and amended QR 4/2014 represented a variance of 559%.
The amended results were mainly due to the reversal of revenue of certain property sales amounting to RM7.869 million which did not meet the criteria for revenue recognition for the financial year ended 31 December 2014 under the accounting standards (i.e. MFRS 118) as advised by the external auditors. The revenue for several property sales were to be recognised in the financial year ended 31 December 2015.
DBHD and its directors have the obligation to ensure that the financial statements are prepared in accordance with the applicable approved accounting standards.
