KUALA LUMPUR (Jan 19): APFT Bhd has fallen into Practice Note 17 (PN17) status after its shareholders' equity fell below the 50% threshold.

The group's former external auditors had expressed an emphasis of matter on the company's ability to continue as a going concern based on its audited financial statements for its financial year ended July 31, 2016. The auditors, Messrs SJ Grant Thornton, highlighted that the group's shareholders' equity on a consolidated basis stood at 34.6% as at Sept 30, 2017.

In a filing today, the group said it is looking to formulate a regularisation plan for its financial condition, which must be submitted within 12 months of its announcement.

It is also required to announce within three months whether its regularisation plan will result in a significant change in its business direction or policy.

If it fails to do so, it will be suspended from trading six days after a notice is issued by Bursa Malaysia, and delisting procedures would be taken against the company.

Separately, the group said it has applied for an extension to hold its 2017 annual general meeting (AGM) together with its 2018 AGM to table its audited financial statements for the 18-month period from Aug 1, 2016 to Jan 31, 2018.

The application follows the change of the group's financial year from July 31 to Sept 30.

Shares in APFT closed down 1 sen or 40% at an all-time low of 1.5 sen, leaving the group with a market capitalisation of RM20.14 million.