KUALA LUMPUR: China Stationery Ltd (CSL) has up to Sept 7, 2015 to submit its regularisation plan, after Bursa Securities decided to grant the Practice Note 17 (PN17) company a further extension of time.

In a filing with Bursa Malaysia yesterday, CSL (fundamental: 1.2; valuation: 0.9) said the stock exchange regulator has vide its letter dated July 16, 2015 decided to grant the company an extension of time of up to Sept 7, 2015 to submit the regularisation plan or the waiver application to lift itself from PN17 status, to the regulatory authorities.

"The extension of time granted to CSL is without prejudice to Bursa Securities’ right to proceed to suspend the trading of the listed securities of CSL and to delist the company in the event that CSL fails to make a regularisation plan or the waiver application to the regulatory authorities on or before Sept 7," it said.

Bursa can also proceed to suspend the trading of the listed securities of CSL and delist it if the company fails to obtain the approval from any of the regulatory awuthorities necessary for the implementation of its regularisation plan or the waiver application; or CSL fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.

To recap, the China-based company last month sought a one-month extension of up to Aug 7, 2015 from Bursa to submit its regularisation plan.

On July 8, 2014 it slipped into the PN17 category after the company’s external auditor Messrs RT LLP issued a disclaimer opinion on its financial accounts for the financial year ended Dec 31, 2013 (FY13), as it had not been able to provide a basis for an audit opinion due to a lack of audit evidence.

Shares in CSL closed unchanged at 8.5 sen yesterday, bringing a market capitalisation of RM104.79 million.

This article first appeared in The Edge Financial Daily, on July 21, 2015.