SC chides Multi Sports over false/misleading info

PETALING JAYA: Multi Sports Holdings Ltd has been reprimanded by the Securities Commission Malaysia (SC) for furnishing false or misleading information in its financial statements.

The SC had vide a letter dated June 27, 2018 reprimanded Multi Sports over the breach of Section 354(1)(a) of the Capital Markets and Services Act 2007 (CMSA) read together with Section 369(b)(B) of the CMSA for knowingly causing the furnishing of its financial statements that are false or misleading to Bursa Malaysia Securities Bhd.

Multi Sports had failed to disclose the outstanding liabilities owed by subsidiary Baixing in its financial statements.

“In the said financial statements, it was disclosed under ‘interest-bearing bank borrowings’ that Multi Sports’ liabilities were RMB11.5 million only instead of the liabilities highlighted in the SC’s notice to show cause dated Feb 13, 2018.

“The non-disclosure of the outstanding liabilities as stated above had caused Multi Sports’ financial statements, which were lodged with Bursa Securities, to contain false or misleading information relating to the affairs of Multi Sports,” it said.

As such, pursuant to Section 354(3)(c) of the CMSA, the SC reprimanded Multi Sports taking into account the fact that new directors have been appointed on the board and efforts are being made to regularise its operations and financial condition.