PETALING JAYA: Bursa Malaysia has publicly reprimanded Kinsteel Bhd and five of its directors for breach of the stock exchange’s Main Market listing requirements, and imposed total fines of RM44,800 to four directors.
Kinsteel was found to be in breach of the listing requirements when it failed to issue the annual report that included the annual audited financial statements together with the auditors’ and directors’ reports for the financial year ended June 30, 2017 on or before Oct 31, 2017. The annual report was only issued on Dec 15, 2017.
“Five directors of Kinsteel at the material time had breached paragraph 16.13(b) of the listing requirements where they had permitted Kinsteel to commit the above breach of paragraphy 9.23(1) of the listing requirements,” Bursa Malaysia said in a statement.
Kinsteel chairman and managing director Tan Sri Pheng Yin Huah as well as CEO and executive director Datuk Henry Pheng Chin Guan were both publicly reprimanded and fined RM16,000 each.
Executive director Datuk Lew Choon and non-independent non-executive director Pheng Chin Huat were both publicly reprimanded and fined RM6,400 each.
Chong Hoi Sheong @ Chong Hoi Cheong, who was an independent non-executive director and audit committee member at the material time, was also publicly reprimanded. Chong retired on Jan 15, 2018.
To recap, the delay in issuance of the annual report was due to the failure of Kinsteel to settle the outstanding audit fees to the external auditors, which led to the delay in commencement of the audit only on Oct 2, 2017 instead of August 2017 as initially scheduled.
Kinsteel had also failed to resolve the outstanding audit findings/areas regarding the annual report with the external auditors expeditiously.
According to Bursa Malaysia, Yin Huah and Henry had failed to demonstrate reasonable and expeditious efforts taken to pay the outstanding audit fees and resolve the audit issues with the external auditors to enable timely issuance of the annual report, despite numerous notices and reminders from the external auditors.
In addition, Lew, Chin Huat and Chong had merely relied on the management and failed to take reasonable efforts to undertake due enquiry, follow up, monitor, supervise and address/ensure the timely payment of the outstanding audit fees and resolution of the audit issues to enable timely issuance of the annual report.
“Bursa Malaysia views the contravention seriously as the timely and accurate submission of financial statements is one of the fundamental obligations of listed companies and is of paramount importance in ensuring a fair and orderly market for securities traded on Bursa Malaysia and necessary to aid informed investment decisions,” it said.
