CORP BRIEF: SC’s AOB, Jollibee Foods, CTOS Digital and MRT3

SC’s AOB urges auditors to heighten diligence 

THE Securities Commission Malaysia’s Audit Oversight Board (AOB) urged auditors to be more vigilant and diligent in the execution of their duties during the current period of economic uncertainties due to the Covid-19 pandemic. In its Annual Inspection Report 2020 yesterday, the AOB noted that it is the responsibility of the directors and audit committee to assess their company’s ability to continue as a going concern when preparing financial statements. This responsibility extends to ensuring disclosure on significant judgements arrived at in order to reach those conclusions. Auditors are then required to verify and challenge the appropriateness of the going concern assumptions, as well as the adequacy of the related disclosures. Due to prolonged uncertainties arising from the pandemic, it is even more important now for auditors to exercise appropriate professional scepticism in conducting their audits.

Jollibee Foods to open stores in Malaysia 

JOLLIBEE Foods Corp (JFC) has signed a joint venture (JV) to operate Jollibee stores in West Malaysia with an investment of US$8 million (RM33.7 million). JFC through its wholly-owned subsidiary, Golden Plate Pte Ltd (GPPL), and Beeworks Investment Pte Ltd (BIPL) will form a private company which will then own and operate the Jollibee stores in West Malaysia, the company said in a filing to the Philippines stock exchange yesterday. The JV will be 30%- owned by GPPL and 70%-owned by BIPL.

CTOS Digital gets 4.6% stake in RAM Holdings 

CTOS Digital Bhd made its first post-listing acquisition by acquiring a 4.6% strategic minority stake in credit rating agency RAM Holdings Bhd for RM10.1 million. In a statement yesterday CTOS said the valuation was arrived at on a willing buyer and willing seller basis. The group yesterday entered into a share purchase agreement with CIMB Bank Bhd to acquire 462,500 ordinary shares in RAM.

Private parties keen to fund MRT3 project 

MASS Rapid Transit Corp Sdn Bhd (MRT Corp) announced several private funding initiative (PFI) proposals for the project. In a statement yesterday, MRT Corp said it is still evaluating the merits of the PFI scheme and needs to adjust the timeline for the tender process for the first package of the project. MRT Corp will announce the new date for the calling of the tender in the future. The request for information exercise which began on April 9, 2021 has been completed. Over 40 submissions by major players of the construction industry in Malaysia were received when the submission period ended on May 25, 2021.