KUALA LUMPUR (June 6): Nexgram Holdings Bhd said Ferrier Hodgson MH Sdn Bhd, the special auditor it appointed for the probing of certain assets of the group, has requested an additional three to four weeks for the submission of its first draft report.

In a filing with Bursa Malaysia today, Nexgram said the delay in delivering the first draft report was mainly due to substantial time taken by the company in compiling the information and documents recently requested by Ferrier Hodgson.

"FHMH (Ferrier Hodgson) represented that they would require an additional three to four weeks to submit their first draft report to the board of directors," Nexgram added.

Nexgram said the initial date for Ferrier Hodgson to deliver their first draft report was on May 31 (last Tuesday).

The company said it will make further announcement on the matter should there be any development.

Nexgram is an end-to-end mobile application service provider connecting mobile networks, developers, and distributors.

It had on March 7 this year announced that its investigation committee has appointed Ferrier Hodgson as a special auditor to carry out independent verification of certain assets within the Nexgram Group such as cash, bank balances and pre-development costs.

"The special audit is expected to be completed within eight to 10 weeks," it said.

The special committee was formed on Jan 22, following inconsistencies found with regard to details of certain assets within the Nexgram Group. The committee comprised its executive director Chen Chuen Sum, as well as three non-executive directors, namely Fu Lit Fung, Helmi Faisal Fuad and Zaharin Ahmad Zamani.

On Jan 22, Nexgram announced that its due diligence committee had taken heed of concerns made by regulators and followed up with a visit to Indonesia, where some of the questionable transactions were said to have transpired.

On Jan 15, the Securities Commission Malaysia (SC) invoked its powers under Section 217(4)(b) of the Capital Markets and Services Act 2007 by issuing a public statement in relation to a proposed takeover of Ire-Tex Corp Bhd by Nexgram, to be funded by the latter's shares.

The SC's concerns were related to the value of Nexgram's assets, while noting that Nexgram's move to dispose of some of its subsidiaries would "delay and obstruct the ongoing enquiries by the SC and Bursa Malaysia".

Nexgram subsequently withdrew its takeover offer for Ire-Tex.

At teh midday trading break, Nexgram's shares were unchanged at 5.5 sen, for a market value of RM103.52 million.