Investor Relations

AUSAMAL-Public Reprimand and Fine

LISTING'S CIRCULAR NO. L/Q : 9584 OF 2001

Your attention is drawn to the following:-

PUBLIC REPRIMAND AND FINE ON AUSTRAL AMALGAMATED BERHAD

Kuala Lumpur, 30 June, 2001 - The Kuala Lumpur Stock Exchange (“KLSE”) in consultation with the Securities Commission, publicly reprimanded and imposed a total fine of RM120,250.00 on Austral Amalgamated Berhad (“AUSTRAL AMALGAMATED”) for breaches of Section 60(a) and Section 60(b) of the KLSE Main Board Listing Requirements (“MBLR”).

Section 60(a) of the MBLR stipulates that a company’s printed annual report shall be issued to the company’s shareholders within a period not exceeding six (6) months from the close of the financial year of the company (“Annual Report”).

The financial year end of AUSTRAL AMALGAMATED was 30 June 2000 and hence the Annual Report was due on 31 December 2000. The Annual Report was only furnished to the KLSE on 26 February 2001, which was a delay of 36 market days. Accordingly, AUSTRAL AMAGAMATED was found to be in breach of Section 60(a) of the MBLR.

Section 60(b) of the MBLR stipulates that notwithstanding Section 60(a), the annual audited accounts together with the auditors’ and directors’ reports (“Annual Audited Accounts”) shall, in any case be given to the Exchange for public release, within a period not exceeding four (4) months from the close of the financial year of the company.

The financial year end of AUSTRAL AMALGAMATED was 30 June 2000 and hence its Annual Audited Accounts were due on 31 October 2000. The Annual Audited Accounts were furnished via the annual report to the KLSE only on 26 February 2001, after a delay of 75 market days. Accordingly, AUSTRAL AMALGAMATED was found to be in breach of Section 60(b) of the MBLR.

The total fine of RM120,250.00 comprised as follows:-

(a) RM54,000.00 for breach of Section 60(a) of the MBLR; and

(b) RM66,250.00 for breach of Section 60(b) of the MBLR.

The public reprimand and total fine of RM120,250.00 were imposed pursuant to Section 392 of the MBLR after having considered all relevant circumstances and after consultation with the Securities Commission.

The KLSE had previously imposed a public reprimand on AUSTRAL AMALGAMATED on 16 October 1999 for breaching Sections 36 and 114 of the MBLR for failing to make an immediate announcement in respect of its acquisition of shares in RNC Corporation Berhad from 10 December 1996 to 19 November 1997.

AUSTRAL AMALGAMATED was also publicly reprimanded and fined RM100,000.00 on 6 May 2000 for breaching Section 60 of the MBLR in respect of its failure to furnish its 1999 Annual Report on time.

The KLSE views this contravention seriously and hereby cautions the Company of its responsibility to maintain appropriate standards of corporate responsibility and accountability in order to achieve greater disclosure and transparency to its shareholders and the investing public.
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AUSTRAL AMALGAMATED BERHAD