Sohar Power Co to appeal CMA decision

Sohar Power Company SAOG, which owns and operates a major Independent Water and Power Project located within the industrial port at Suhar, has said that it will appeal a censure by the Capital Market Authority (CMA) which has held the company in breach of provisions of the Capital Market Law.

Sohar Power said in a filing to the CMA that was notified of a decision issued by the Disciplinary Committee of the CMA (Decision No 10/2018) dated May 16, 2018, warning that it was in violation of Article 5 of the Capital Market Law and obligating the Company to restate its financial statements to comply with International Accounting Standard 17.

“The Decision can only be enforced once the Company’s right of appeal is exhausted. This Decision has arisen because the Company accounts for 2016 were qualified by the external auditors due to a differing interpretation of lease revenue recognition. Historically, the Company has consistently applied its interpretation of the lease revenue recognition policy in its audited accounts.

Please see the 2016 published financial statements for the qualification by the auditors and the Company’s interpretation in Note 4 of such statements. The Company is seeking legal advice with regard to its right to appeal against the Decision and will continue to engage with relevant regulatory authorities,” Sohar Power added.

THIS DECISION HAS ARISEN BECAUSE THE COMPANY ACCOUNTS FOR 2016 WERE QUALIFIED BY THE EXTERNAL AUDITORS DUE TO A DIFFERING INTERPRETATION OF LEASE REVENUE RECOGNITION