Bursa Malaysia Securities Berhad has publicly reprimanded Sarawak Consolidated Industries Berhad and 2 of its directors for breach of the Bursa Malaysia Securities Main Market Listing Requirements.
In addition, the 2 directors were imposed a fine of RM27,000 each. SCIB was publicly reprimanded for breach of the Main LR for failing to issue the annual report that includes the audited financial statements together with the auditors’ and directors’ report for the 18-month financial period after a delay of approximately 2 months.
SCIB was also required to review and assess the adequacy and competency of the company’s finance and accounting resources and the adequacy, comprehensiveness, implementation, and effectiveness of the company’s policies and procedures in respect of financial reporting. 2 directors of SCIB at the material time were Dato’ Dr. Ir. Ts. Mohd Abdul Karim Bin Abdullah, Non-Independent Non-Executive Chairman(retired on 8 December 2022) and Rosland Bin Othman Group Managing Director/Chief Executive Officer (resigned on 28 June 2023).
The Exchange views the breach seriously as timely submission of financial statements is a fundamental obligation of listed companies.
Background, SCIB re-classified transactions relating to the overseas construction contracts/projects by disclosing the net
amount due to the Group and to the company of USD15,670,756 (RM64,223,196) and USD4,246,080 (RM17,847,637) respectively as project management fee. Consequently, adjustments were made to the financial statements which included a reduction of the Group’s revenue from RM748,551,678 (based entirely on the construction contracts previously) to RM93,267,844, the details of which were disclosed in Note 22 to the audited financial statements.
