Categories: BusinessNews

Jerasia Capital and 8 directors publicly reprimanded and fined

BURSA Malaysia Securities Bhd has publicly reprimanded Jerasia Capital Bhd and eight of its directors for breaches of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR). 

In addition, the eight directors of the apparel manufacturer and fashion retailer were imposed total fines of RM600,000, the stock exchange regulator said in a  statement today.

Jerasia Capital was publicly reprimanded for breaches Paragraphs 9.19A(1)(a) & (b) of the Main LR for failing to make an immediate announcement of the defaults in payment of various credit facilities by the company’s wholly-owned subsidiaries, Jerasia Fashion Sdn Bhd (JFSB), Jerasia Apparel Sdn Bhd (JASB) and Canteran Apparel Sdn Bhd (CASB).

It was also in breach of Paragraph 9.35A(1)(a) of the Main LR for failing to ensure that the company’s announcements dated Aug 23, 2021, and Nov 26, 2021, on the dates of the defaults in payment to the various lenders were accurate.

Moreover, it broke Paragraph 9.03(1) which is read together with Paragraph 9.04(f) when it failed to make an immediate announcement of the writ of summons and statement of claim filed by the lenders against the company and/or its subsidiaries and the summary judgments obtained by AmBank (M) Bhd and Alliance Bank Malaysia Bhd. 

Lastly, it breached Paragraph 9.19(19)(a)(i) of the Main LR for failing to make an immediate announcement of the winding-up petition dated July 21, 2021, filed by AmBank against JFSB.

Jerasia Capital group MD Pronob Kumar Sen Gupta was fined RM150,000 while former executive deputy chairman Datuk Yap Fung Kong and former ED Debbie Yap May Sew were fined RM100,000 each.

The rest including retired independent non-executive chairman Datuk Phang Ah Tong were fined RM50,000 each.

Bursa Malaysia Securities said the findings of breaches and imposition of the penalties on Jerasia Capital and its directors were made pursuant to paragraph 16.19 of the Main LR upon completion of due process and after taking into consideration all facts and circumstances of the matter.

“Bursa Malaysia Securities views the contraventions seriously as the requirements to make an immediate and accurate announcement of material default in payment of credit facilities, litigations and winding-up petitions are fundamental to enable investors to make informed investment decisions concerning the listed issuer’s financial condition.

“In addition, the numerous delays in making an immediate announcement on the Defaults in Payment and Litigations displayed blatant disregard of the Main LR and reflected poor governance of the company,” it said. 

Bursa Malaysia Securities has also reminded Jerasia Capital and its board of directors of their responsibility to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public. — TMR

Dzul

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