Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded Harn Len Corporation Berhad (HARNLEN) in respect of the company’s fourth quarterly report for the financial year ended 31 December 2016 (QR Dec 2016) announced on 24 February 2017 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.
HARNLEN had failed to ensure that the QR Dec 2016 took into account the adjustments announced on 28 April 2017 (the Adjustments).
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.
HARNLEN was 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 June 2018. In addition, HARNLEN 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 HARNLEN’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 HARNLEN at the material time was as follows:-
- Puan Sri Datin Chan Pui Leorn
- Low Quek Kiong
- Low Kueck Shin
- Low Kwek Lee
- Low Kuek Kong
- Lee Chon Sing
- Low Kok Yong
- Low Kok Yaow
- Loh Wann Yuan
- Brig. Jen. (B) Dato’ Ali Bin Hj. Musa
- Law Piang Woon
- Mohamed Akwal Bin Sultan Mohamad
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
HARNLEN had reported an unaudited loss attributable to the owners of the company of RM2,290,919 in its QR Dec 2016 announced on 24 February 2017 as compared to an audited loss attributable to owners of the Company of RM8,339,831 in the audited financial statements for the financial year ended 31 December 2016 (AFS 2016) announced on 28 April 2017. The difference of RM6,048,912 between the QR Dec 2016 and AFS 2016 represented a variance of 264%.
The Adjustments were essentially made in accordance with the accounting standards as recommended by the external auditors upon completion of the audit and were omissions/misstatements by the company in the QR Dec 2016.
