Bursa reprimands Carotech, Hovid

Bursa Malaysia Securities Bhd has publicly reprimanded Carotech Bhd, its holding company, Hovid Bhd, and their respective directors for breaching the listing requirements of Bursa Malaysia Securities.

In addition, five directors of Carotech and/or Hovid were fined a total of RM400,000, Bursa Malaysia said in a statement today.

The local bourse said Carotech and Hovid were publicly reprimanded for failing to ensure their announcements dated Aug 30, 2010 on the fourth quarterly report for the financial year ended June 30, 2010 took into account the adjustments as stated in the announcements dated Oct 29, 2010, resulting in a
significant deviation between the companies’ unaudited and audited results.

The failure to take into account the adjustments were in contravention of Rule 9.16(1)(a) of the Bursa Malaysia Securities ACE Market Listing Requirements (ACE LR) and paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market

Listing Requirements (Main LR) where a listed company must ensure that each announcement is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions, it said.

Bursa Malaysia said Hovid is also required to carry out a limited review of its quarterly report submissions and must ensure all its directors and relevant personnel attend a training programme on compliance with the Main LR pertaining
to financial statements.

It said notwithstanding that Carotech was de-listed on May 11, 2012, the breach had been committed, while the company was listed on Bursa Malaysia's official list.-- Bernama