MUSCAT, NOV 27
The Capital Market Authority (CMA) has suspended the trading of shares of Raysut Cement SAOG following the uncovering of material misrepresentations in the unaudited financial reports for Q2 2022 published on November 10, 2022.
An audit detected these material misrepresentations that were inconsistent with international accounting standards and do not reflect the real financial position of the company, said the Authority in a press statement. It ordered the suspension of trading of the company shares until “remedial action” is taken in accordance with the CMA’s requirements and instructions, it noted.
“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 Raysut 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,” the Authority said.
It also sent an official letter to the board of directors of the company on November 21, 2022 seeking an urgent adjustment of the situation.
“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,” it said.
The Authority urged all 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,” it added.