Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (39/2021 Disciplinary Board) (15/2021 Authority) and imposition of a fine of four thousand Dinars against Heavy Engineering Industries and Shipbuilding Company for violating Real Estate Assets Valuation.

Announcement Regarding Issuance of Disciplinary Board Resolution No. (39/2021 Disciplinary Board) (15/2021 Authority) and imposition of a fine of four thousand Dinars against Heavy Engineering Industries and Shipbuilding Company for violating Real Estate Assets Valuation.

For the following reasons:

1- Provision of Paragraph (b) of Item (1) of Appendix No. (1) of Module Eleven “Dealing in Securities” of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, due to the Company’s non-compliance in conducting a valuation of various properties located in the State of Kuwait - multiple other facilities and entities within the Company’s headquarters in Shuwaikh Port and West Shuaiba Industrial Area, with a value of KWD 5,870,327 (five million eight hundred and seventy thousand three hundred and twenty-seven Kuwaiti Dinars) classified under the item (Property, Machinery and Equipment), according to the Company's financial statements for the financial year ending on December 31, 2019.
2- The provision of Paragraph (e) of Item (1) of the same aforementioned Appendix, due to the Company’s non-compliance in the financial statements for the financial year ending on December 31, 2019 to make a valuation of separate properties located in the State of Kuwait with a value of KWD 12,163,447 (twelve million one hundred and sixty-three thousand four hundred and forty-seven Kuwaiti Dinars) classified under the item (Property, Machinery and Equipment) during the month period specified by law.

The Resolution included the infliction of the following penalty: -
“The Company is fined an amount of two thousand Dinars for each violation”

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 Laws 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.