Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded IFCA MSC BERHAD (IFCAMSC) for failing to ensure that IFCAMSC’s announcements dated 24 May 2011,16 August 2011, 24 November 2011 and 23 February 2012 on the quarterly reports for the financial period ended 31 March 2011 (1st QR 2011), 30 June 2011 (2nd QR 2011), 30 September 2011 (3rd QR 2011) and 31 December 2011 (4th QR 2011) took into account the net effect on foreign exchange differences amounting to RM4.032 million upon the de-recognition of an associate (“the Adjustment”).
The failure to take into account the Adjustment 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.
IFCAMSC 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 30 September 2013. In addition, IFCAMSC must ensure all its directors and relevant personnel attend a training programme on compliance with the ACE LR pertaining to financial statements. IFCAMSC 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 IFCAMSC’s directors to have caused or permitted the breach by IFCAMSC, 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:
- Yong Keang Cheun
- Yong Kian Keong
- Chew See Chiew
- Hoe Kah Soon
- Ooi Bee Bee
Bursa Malaysia Securities views the contravention seriously and has reminded IFCAMSC and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.