Kuala Lumpur, 5 August 2009
SC directs MEMS Technology Berhad to rectify and reissue financial statements
The Securities Commission (SC) has directed MEMS Technology Berhad (MEMS) to rectify and re-issue its financial statements for the financial years ended 31 July 2007 and 31 July 2008. This is to ensure that investors have complete and accurate information to make informed investment decisions relating to the company.
The SC has further directed MEMS to rectify and re-announce to Bursa Malaysia Berhad (Bursa Malaysia) MEMS’ unaudited Condensed Consolidated Income Statements for the six months period ended 31 January 2009. MEMS is listed on the ACE market of Bursa Malaysia.
The SC’s investigations revealed that MEMS’s group revenue of RM53.699 million reported in the 2007 financial statements contained a total of RM13.007 million sales which were not transacted. In the 2008 financial statements, MEMS reported a revenue of RM71.994 million which contained a total of RM24.161 million sales which were not transacted. In the financial statements for the six month period ended 31 January 2009, MEMS reported a revenue of RM37.366 million which contained a total of RM12.015 million sales which were not transacted. These sales were recorded in the financial statements of MEMS’ wholly owned subsidiary, Senzpak (M) Sdn Bhd.
MEMS had breached section 369(b)(B) of the Capital Markets and Services Act 2007 when the company submitted misleading information to the SC and Bursa Malaysia with respect to the information above.
According to the directive issued yesterday, MEMS’ reissuance of its financial statements for the financial years ended 31 July 2007 and 31 July 2008 must be accompanied by an announcement to Bursa on the rectification done as well as the reasons and effects. MEMS is also required to re-announce to Bursa the rectified financial statements for the six month period ended 31 January 2009. The SC has required the company to carry out its directives within a period of 14 days from 4 August 2009.
The SC had on 16 April 2009 charged MEMS’ two directors for knowingly authorizing the furnishing of a misleading statement in MEMS unaudited Condensed Consolidated Income Statements for the 12-month period ended 31 July 2007 to Bursa. The trial is fixed for 5 October 2009.