CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (56/2022 Disciplinary Board) (204-/2021-03/2022 Authority) and the imposition of a fine against: Almudon International Real Estate Company for violating the Rules of Enforcement of the Law and Listing Rules
Announcement regarding issuance of Disciplinary Board Resolution No. (56/2022 Disciplinary Board) (204-/2021-03/2022 Authority) and the imposition of a fine against: Almudon International Real Estate Company for violating the Rules of Enforcement of the Law and Listing Rules.
For violating the following provisions:
1) Provision of Article (1-1) of Module Three (Enforcement of the Law) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority, when studying the financial statements of Almudon International Real Estate Company for the financial year ending on 31/12/2020, that there were some differences in the data and basis which was relied on to evaluate the project on the grounds of which the Company was evaluated ...... (listed under investment in an associate Company within the Company’s financial position), with what was stated in the statement of the Tourism Development Authority submitted by the Company, and the previous evaluation of 2019, according to the following:
• The project was evaluated on the assumption that it contains a 4-star hotel with about 300 rooms, which contradicts what was mentioned in the Tourism Development Authority statement, which states that the approved capacity is 195 hotel rooms, and the commercial registry document indicates that the purpose of establishing the Company is to establish and operate a 5-star touristic hotel with a capacity of 129 hotel rooms.
• The evaluation for 2019 does not include the hotel development project, while the hotel project represents about 70% of the total project value for 2020.
• The percentage of construction (FOOT PRINT) in the 2019 assessment was 30% of the total land, while (FOOT PRINT) in the 2020 assessment represented 20%.
Accordingly, the Authority sent an inquiry through an email on 12/12/2021 to inquire about the explanations for these differences, and the Company was given a period of 3 days to respond, and despite the Company’s request to increase the period of time to provide the Authority with the required data, it was granted a deadline until 3/1/ 2022, but it has not provided the Authority with any data to date.
2) Provision of Item (1) of Article (1-15-1) of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
As it was proven to the Authority that the company failed to submit a copy of its interim financial statements for the financial period ending on 30/9/2021 to Boursa Kuwait and the Capital Markets Authority in accordance with the legal period specified in the aforementioned article, and to disclose them simultaneously according to the form prepared within the specified period. In accordance with the requirement in Item (1) of Article (1-15-1) of the above statement, which expired on 15/11/2021.
The Resolution included the infliction of the following penalty: -
“Almudon International Real Estate Company is fined an amount of five thousand Dinars for each of the two attributed violations.”
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.