In re MRC Allied Industries, Inc.

August 8, 2007 SEC-CFD ORDER NO. 134-07 IN THE MATTER OF MRC ALLIED INDUSTRIES, INC. VIOLATION OF SRC RULES 17.1 (1) (A) (i) AND (ii), SECTION 54 (C) AND THE ORDER OF THE COMMISSION DATED MAY 17, 2006 ORDER Before the Commission is the letter filed by MRC ALLIED INDUSTRIES, INC. (MRC) dated May 28, 2007 requesting a thirty percent (30%) reduction of penalties and that it be allowed to pay a monthly installment of Twenty Thousand Pesos (P20,000.00) until the total penalty of Two Hundred Fifty Eight Thousand Six Hundred Pesos (P258,600.00) imposed by the Commission is completely paid for its commission of the following violations: Violation Frequency of Penalty Imposed Violation Late Filing of 2006 1st Quarter Report 2nd Offense P55,100.00 (SEC Form 17-Q) 1 in violation of SRC Rule 17.1 (1) (A) (ii) Late Filing of 2005 Annual Report 2nd Offense P114,500.00 (SEC Form 17-A) 2 in violation of SRC Rule 17.1 (1) (A) (i) Violation of the Order of the 1st Offense P50,000.00 Commission dated May 17, 2006 3 Late Filing of 2006 Certification 2nd Offense P39,000.00 on the Attendance of the Directors to the 2006 Board Meetings in violation of Section 54 (c) of the SRC TOTAL P258,600.00 ========== In its meeting dated August 2, 2007, the Commission resolved to direct the company to pay the assessed penalties as follows: cDAEIH 1. Payment of twenty five percent (25%) of the amount assessed or P64,650.00 within seven (7) days from receipt of the Order of the Commission. 2. Delivery of six (6) post dated checks in the amount of Thirty Two Thousand Three Hundred Twenty Five Pesos (P32,325.00) each and dated every 15th of the month starting August to be replaced with cash, Cashier or Manager's checks payable to the Securities and Exchange Commission as they fall due. 3. Failure to settle any of the installments shall render the entire balance due and demandable and that the Commission shall immediately suspend the company's registration of securities without further notice and hearing. WHEREFORE, the company is hereby directed to settle the assessed penalty in accordance with the above terms of payment. Failure of the company to settle the imposed penalties within the above-stated period shall be a ground for the suspension of its registration of securities and Certificate of Permit to Sell Securities to the Public without need for further notice and hearing. SO ORDERED. EDSA, Mandaluyong, August 8, 2007. (SGD.) JUSTINA F. CALLANGAN Director Footnotes 1. Basic Penalty of P50,000.00 plus P5,100.00 (17 days x P300 per day). The 1st Quarter Report was due on May 15, 2006 but was submitted only on June 1, 2006 or 17 days late. 2. Basic Penalty of P100,000.00 plus P14,500.00 (29 days x P500/day). The 2005 Annual Report was due on May 2, 2006 but was filed only on May 31, 2006 or 29 days late. 3. The P50,000.00 Penalty imposed by the Commission for said company's failure to timely file its 2005 Audited Financial Statements on May 31, 2006 pursuant to SEC Order dated May 17, 2006 of the Commission.