General Announcement
Reference No
TC-071004-60871
Company Name
:
TALAM CORPORATION BERHAD
Stock Name
:
TALAM
Date Announced
:
04/10/2007
Type
:
Announcement
Subject
:
TALAM CORPORATION BERHAD (“Talam” or “the Company”)
DIRECTIVES ISSUED UNDER REGULATION 5 OF THE SECURITIES INDUSTRY (COMPLIANCE WITH APPROVED ACCOUNTING STANDARDS) REGULATIONS 1999
Contents :
Talam wishes to inform that it had received a letter dated 1 October 2007 from the Securities Commission (“SC”) pertaining to the directives issued under Regulation 5 of the Securities Industry (Compliance With Approved Accounting Standards) Regulations 1999 (“the Regulations”).
The SC had directed the Company to re-issue its 2006 and 2007 financial statements by 31 October 2007, for failure to comply with Regulation 4 of the Regulations which requires every listed corporation to ensure that the consolidated financial statements are to be made out in accordance with approved accounting standards.
Talam’s breach of Regulation 4 involves the adjustments of various transactions in its financial statements for the year ended 31 January 2006 despite the Talam’s auditors, Ernst & Young’s inability to obtain sufficient appropriate audit evidence to satisfy themselves of the said adjustments. The adjustments had the effect of reclassifying RM90 million of its debtors into property development costs, other liabilities and retained profits brought forward.
This treatment is in breach of the Financial Reporting Standard (FRS) 101
2004
Presentation of Financial Statements which requires that financial statements should present fairly the financial position, financial performance and cash flows on an enterprise. In this respect, the SC has directed Talam to reinstate the RM90 million debtors, and reissue its 2006 and 2007 financial statements.
In addition to the re-issuance of its 2006 and 2007 financial statements, Talam is also required to make the necessary announcement to Bursa Malaysia Securities Berhad in respect of the rectification of its 2006 and 2007 financial statements, together with the reasons and effects (financial or otherwise) of its actions.
The SC informs that it views non-compliance with financial reporting regulations as a serious matter as high standards of financial reporting are fundamental to market integrity and investor protection.
The Board of Directors will review and deliberate in the best manner to ensure the compliance of the SC’s directive.
This announcement is dated 4 October 2007.
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