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Disclosure of Decision received from CMA
Aug 29, 2017 - 03:59PM Company : SOHAR POWER

Sohar Power Company SAOG would like to inform the Shareholders community that on 23 August 2017, the Company received a copy of a decision issued by the Executive President of the CMA(Decision No. 6/2017) dated 22 August 2017 ("Decision") warning the Company that it is in violation of Article 5 of the Capital Market Law. The covering letter provided with the Decision directs the Company to restate its 2016 accounts in compliance with International Accounting Standards. The Decision can only be enforced once the Company's right of appeal is exhausted.  This Decision has arisen because the Company accounts for 2016 were qualified by the external auditors due to a differing interpretation of lease revenue recognition. Historically, the Company has consistently applied its interpretation of the lease revenue recognition policy in its audited accounts. Please see the 2016 published financial statements for the qualification by the auditors and the Company’s interpretation in Note 4 of such statements.  The Company is seeking legal advice with regard to its right to appeal against the Decision and will continue to engage with relevant regulatory authorities.