Title: Announcement regarding issuance of Disciplinary Board Resolution No. (78/2021 Disciplinary Board) (80/2021 Authority) and imposition of a fine of 2 thousand Dinars against Metal Recycling Company (MRC) for violating the rules of Disclosure and Listing.

Announcement regarding issuance of Disciplinary Board Resolution No. (78/2021 Disciplinary Board) (80/2021 Authority) and imposition of a fine of 2 thousand Dinars against Metal Recycling Company (MRC) for violating the rules of Disclosure and Listing.

For the following reasons:
This is for violating the provision of Article (1-13) 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 after reviewing the Company’s financial statements for the financial year ending on 31/12/2020 and the qualified opinion of the Company’s auditor that a real estate located in Amghara area was withdrawn by the Ministry of Commerce and Industry. It is included in the item (Investment Real Estate) with an associate company on 3/2/2021. It was noted that the Company did not monitor a change in the book value of this investment, despite that the real estate was withdrawn from the associate company. The associate company did not remove the withdrawn investment real estate from its books, which constitutes a violation of the International Financial Reporting Standards (AIS28) “Investments in Associates and Joint Ventures” paragraph “41C”. The Company did not perform an impairment test for its investments despite the presence of an indication, which is the land withdrawal.

The Resolution included the infliction of the following penalty: -
“Metal Recycling Company (MRC) is fined an amount two thousand Dinars for the violation attributed to it”.

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.