Bursa reprimands Oriental and MPC

by **Cals** Thu 28 Nov 2013, 10:20

Business & Markets 2013

Written by Madiha Fuad of theedgemalaysia.com

Thursday, 28 November 2013 10:09

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Oriental Holdings Bhd and Malaysia Pacific Corp Bhd (MPC) for failing to comply with the Main Market listing requirements (LR).

In a filing yesterday, Bursa said Oriental had failed to ensure that the announcement dated Feb 28, 2013 on its fourth quarterly report for the financial year ended Dec 31, 2012 (4QFY12) took into account the adjustments as stated in its announcement dated May 30, 2013.

On Feb 28, Oriental reported an unaudited profit after taxation and minority interest (Patami) of RM235.85 million in its 4QFY12 results.

This compared with an audited Patami of RM200.633 million in 4QFY12 in its annual audited accounts for FY12, which was announced on April 30, 2013.

Bursa noted that the variance of RM35.217 million between the unaudited and audited results represented a deviation of 14.9%.

“The main adjustment arose from the consolidation elimination entries attributable to a non-controlling interest in relation to a reversal of impairment losses. Oriental had admitted that it was an inadvertent oversight,” it pointed out.

“The failure to take into account the adjustment was in contravention of paragraph 9.16(1)(a) of the Bursa Main Market LR in which 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,” said Bursa.

Oriental is now required to conduct a limited review of four quarterly report submissions for FY13 by external auditors.

In another filing yesterday, Bursa also reprimanded MPC for failing to make an immediate announcement in respect of the default in payments of the overdraft and revolving credit facilities granted by RHB Bank Bhd.

It said as a listed issuer, MPC must make an immediate announcement of the default in payments of either interest or principal sums or both in respect of a credit facility where it is 5% or more of the net assets of the listed issuer.

On March 12, 2013, MPC announced the default in payment of principal and interests on the overdraft and revolving credit facilities granted by RHB.

The local bourse said the total overdraft and revolving credit facilities (including interest) in default amounting to RM76.2 million as at Jan 31, 2008 represented 49% of the company’s net assets of RM156.1 million. It said this also represented about 44.2% of the company’s total borrowings of RM172.3 million as at FY07 ended June 30.

This article first appeared in The Edge Financial Daily, on November 28, 2013.