KUALA LUMPUR (March 29): Comintel Corp Bhd (Comintel Corp), which was classified as a Practice Note 17 company on Thursday, announced today that its fourth quarter financial results have been delayed, because it wants to revise the document pending the resolution of a winding-up petition against its subsidiary that is due for hearing on April 17.

It said in a Bursa filing that its consolidated results for the fourth quarter ended Jan 31, 2019 had been prepared on the basis of its wholly-owned unit Comintel Sdn Bhd (Comintel SB) remaining an on-going concern.

But due to the legal proceeding, the group has been advised to prepare its unaudited quarterly reports for 4QFY19 on the basis that the winding-up petition would be granted by the court, whereby all the assets of Comintel SB will have to be written down to net realizable value.

Hence, the group's audit committee and board members have decided that it is best to revise its prepared 4QFY19 results to reflect the actual scenario by reclassifying the relevant accounts and make sufficient provisions and impairment.

It said it aims to release the revised 4QFY19 results on or before April 5.

"The reclassification of the relevant accounts and provision of sufficient provisions and impairment does not have an impact on the company's status as a Practice Note 17 company, as announced yesterday [on] March 28, 2019," it said.

The company triggered the PN17 criteria after its shareholders' equity on a consolidated basis fell to less than 25% of its issued capital.

The counter closed 4.76% or half a sen lower at 10 sen today, after 1.03 million shares were traded, giving the group a market capitalisation of RM14.7 million.