KUALA LUMPUR (Nov 4): Shares of Kinsteel Bhd and its subsidiary Perwaja Holdings Bhd, which had failed to submit their annual audited accounts for the financial period ended June 30, 2014 (FY14), are at risk of being suspended from trading from Monday (Nov 10).

Bursa Malaysia told the two companies that the stock exchange was unable to consider their applicatoin for an extension of time to release the annual audited financial statements, for for the financial period ended 30 June until Nov 14, simply because their applications were submitted after the due date for submission of the audited financial statements.

The two companies which are owned by tycoon Tan Sri Pheng Yin Huah, are required under the listing requirement to submit their audited annual accounts by coming Friday (Nov 7). If they fail to do so, the companies’ securities would be suspended from trading on Nov 10.

Perwaja and Kinsteel have made the same announcement in a separate filing today.

To recap, Kinsteel and Perwaja had failed to submit their annual audited accounts to the stock exchange for public release, within the stipulated timeframe of Oct 31, 2014.

The two companies told Bursa they are still in the midst of finalising the valuation of their fixed assets, and they expect to submit the results by Nov 14.

According to the listing requirements, if a listed issuer fails to issue the outstanding financial statements within five market days after the expiry of the timeframes, Bursa will suspend the trading in the company’s shares.

Moreover, if the listed issuer fails to issue the outstanding financial statements within six months from the deadline, the de-listing procedures will be commenced against the company.

According to TheEdge Markets.com, the risk score of Kinsteel stood at 4 on a scale of 1 to 5, with 5 being the most volatile. Its fundamental score stood at 0 on a scale of 0 to 3, with 3 suggesting it is profitable and has strong balance sheet.

Kinsteel's share price fell 2.5 sen or 11.9% to close at 18.5 sen today, bringing its market capitalization to RM192.7 million.

Perwaja also has a fundamental score of 0, with a maximum risk score of 5. The counter declined 1 sen or 8.3% to settle at 11 sen, giving it a market capitalization of RM61.6 million.