The Securities Commission (SC) has directed Talam Corp Bhd to reissue its financial statements for 2006 and 2007 by Oct 31.  Talam is the third to be asked to do so after Aktif Lifestyle Corp Bhd ( May 4, 2005) and Oilcorp Bhd ( March 24, 2005)  

Details:

• The reason for doing is that Talam has breached Regulation 4 of the Securities Industry (Compliance with Approved Accounting Standards) Regulation 1999. 
• This involves the adjustments of various transactions in its financial statement for the year ended Jan 31, 2006 despite its auditors, Ernst & Young’s inability to obtain sufficient appropriate audit evidence to satisfy themselves of the said adjustments. 
• The adjustments had the effect of reclassifying RM90mil of its debtors into property development costs, other liabilities and retained profits brought forward
• This accounting treatment was not in compliance with the Financial Reporting Standard FRS 101 on Presentation of Financial Statements, which required financial statements to present fairly the financial position, financial performance and cash flows of an enterprise. 
• SC therefore has directed Talam to reinstate the RM90mil and reissue its 2006 and 2007 financial statements. Talam is also required to announce to Bursa Malaysia in respect of the rectification of its 2006 and 2007 financial statements, together with the reasons and effects (financial or otherwise) of its actions
• The SC also directed Talam to comply with all regulatory requirements, including tabling its financial statements at a shareholder meeting and to re-lodge the financial statements along with the minutes of the meeting with Companies Commission of Malaysia within 14 days from the date the rectified and reissued financial statements were submitted to the SC and Bursa Malaysia

Interestingly, prior to this irregularity,Talam recently announced several changes to its board whereby the chief executive officer Puan Sri Thong Nyok Choo and non-executive directors Sulaiman Hew Abdullah and Lai Moo Chan had resigned on Oct 1. 

On the same day, it redesignated Datuk Ab Rauf Yusoh as executive director and appointed Chua Kim Lan executive director. Also appointed were three non-executive directors Datuk Kamaruddin Mat Desa, Lee Swee Seng and Loy Boon Chen. The existing board members are executive chairman Tan Sri Chan Ah Chye, deputy vice-chairman Tengku Sulaiman Shah Al-Haj Ibni Al-Marhum Sultan Salahuddin Abdul Aziz Shah Al-Haj and non-executive director Tsen Keng Yam.