Perwaja, Kinsteel delay submission of audited accounts

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KUALA LUMPUR: Steel manufacturers Perwaja Holdings Bhd and its major shareholder Kinsteel Bhd have failed to furnish their audited financial statements ended June 30, 2014 (FY14) by Oct 31, as they are still in the midst of finalising the valuation of their fixed assets.

In separate filings with Bursa Malaysia yesterday, Perwaja and Kinsteel said they now expect to submit the results by Nov 14.

The two companies explained that the reason for failing to issue the FY14 annual financial statements was due to outstanding audit matters, in particular relating to the valuation of the group’s fixed assets.

They said the valuation exercise had yet to be completed as at Oct 31.

As a result, trading in shares of Perwaja and Kinsteel was suspended for an hour yesterday. Kinsteel shares closed down 6.67% to 21 sen, giving it a market capitalisation of RM223.94 million, while Perwaja’s share price ended the day 7.69% lower to 12 sen, with a market cap of RM67.2 million.

The two companies expect to issue the annual financial statements soon, but not later than Nov 14.

In the event both companies still fail to submit their audited financial statements by Nov 7, the suspension of trading will be in force on Nov 10.

On Oct 31, Perwaja and Kinsteel made separate announcements to Bursa that they were unable to release their audited financial statements for FY14 by the same date.

As a result, both companies sought 14 days’ extension from Bursa for the release of their audited financial statements.

 

This article first appeared in The Edge Financial Daily, on November 4, 2014.