CMA detects Material Misrepresentation in the Financial Reports of Raysout Cement Company and Suspends Trading of its Shares
The Capital Market Authority would like to announce to investors and the public in general suspension of trading of the shares of Raysout Cement SAOG as a result of the efforts of the audit teams of the CMA during the investigative onsite audit it is currently conducting. The audit team uncovered material misrepresentation in the unaudited financial reports for the third quarter of the current financial year disclosed to the public on November 10, 2022, which is inconsistent with the international accounting standards and is not reflecting the real financial position of the company. The trading of the company shares was suspended until remedial action in accordance with the CMA’s requirements and instructions.
Due to the material nature of the misrepresentations and the huge impact on the equity and profit and loss accounts the CMA calls on the shareholders, investors, stakeholders and those interested in the financial statements of Raysout Cement SAOG to take care and exercise due diligence when making investment decisions and shall not rely on the financial statements disclosed earlier by the company and rely on the corrected financial statement which will be filed on the website of the Muscat Stock Exchange today November 27, 2022 after being corrected.
Based on the CMA’s jurisdiction to protect the rights of investors and to enhance the integrity of the financial markets in the Sultanate of Oman, and based on the onsite investigative audit of the company’s operations conducted by the CMA in accordance with its powers conferred by the law, and after obtaining statements, information and documents supporting beyond doubt such material misrepresentations, the CMA sent an official letter to the board of directors of the company on November 21, 2022 to adjust the situation urgently.
This statement is issued to place on shoulder of the board of directors of the company the obligations provided for in the Commercial Companies Law, Securities Law and the Code of Corporate Governance, and to correct the financial statements of the company based on the CMA’s instruction in this regard in line with the International Accounting Standards. CMA will continue to work tirelessly and relentlessly to discharge its supervisory and regulatory responsibilities to provide safe, sound and fair investment environment.
CMA would like to point out that unearthing such misrepresentation in the financial reports would not have been possible without the efforts of the investigative audit team that comprises professional and competent Omanis.
CMA urges all the issuers of equity or other securities to observe fairness and integrity when preparing the financial reports presented to the stakeholders for the integrity and efficiency of the capital market to enhance consumers’ confidence and to add high standards of credibility, which is the cornerstone for the success of the securities markets. CMA emphasizes that failure to exercise due diligence in providing timely and accurate financial statements to the investors in fair manner is breach of the law and cause the violating entities legally responsible and the CMA announces zero tolerance in this regard.
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