KUALA LUMPUR (Nov 7): Both Perwaja Holdings Bhd and Kinsteel Bhd have submitted their audited accounts for the 18-months financial period ended June 30 today.

The duo’s audited net losses were one third higher than the unaudited figures.

Perwaja announced to Bursa Malaysia that its audited account for the financial period of 18 months ended Jun 30, 2014 (FP14) at RM1.217 billion — a 32% variation or RM295.85 million, compared with the unaudited sum of RM921.6 million.

The wider losses was attributed to impairment of plant and machinery (RM233.57 million), impairment of receivables (RM58.94 million), and other adjustments (RM3.35 million).

“As advised by the external auditors and based on the valuation done by an independent valuer, the company has made the impairment of plant and machinery to reflect its current conditions,” Perwaja explained in its statement today.

Meanwhile, Kinsteel’s annual audited accounts also show a 30% variation against the unaudited figures.

The steel maker’s net audited loss was at RM546.8 million — RM125.32 million higher than the unaudited sum of RM421.49 million announced in late August.

The variance on Kinsteel’s audited net loss was due to impairment on inventories, plant and machineries in subsidiary (RM15.1 million and RM87.21 million respectively), and overstatement of inventories (RM23 million).

The submission of the audited accounts would save the two financially-stressed companies from the verge of being suspended from trading.

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

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

However, Bursa did not grant them the extension as the regulator said it was not able to consider doing it, because the two companies’ applications were made after the due date for submission of the audited financial statements.

Under the listing requirements, if a listed issuer fails to issue the outstanding financial statements within five market days after the expiry of the time frame, 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 delisting procedures will commence against the company.

According to TheEdge Research, the risk score of Kinsteel stood at four on a scale of one to five, with five being the most volatile. Its fundamental score stood at 0 on a scale of zero to three, with three suggesting it is profitable and has a strong balance sheet.

Perwaja also has a fundamental score of 0, with a maximum risk score of 5. The counter inched up half sen or 6.25% to settle at 8.5 sen, giving it a market capitalization of RM47.6 million.

Kinsteel’s share price gained one sen or 6.06% to 17 sen yesterday, bringing its market capitalization to RM182.28 million. Perwaja's share price increased five sen or 6.25% to 8.5 sen today. Some four million shares changed hands.