Masteel's application for time extension rejected

PETALING JAYA: Malaysia Steel Works (KL) Bhd's (Masteel) application for an extension of time to furnish the audited financial statements and annual report for the financial year ended Dec 31, 2014 (FY14) has been rejected by Bursa Malaysia Securities Bhd.
Masteel had applied for the extension of time until June 30, 2015 to furnish the audited financial statements for FY14; and until July 31, 2015 to furnish the annual report for the FY14.
Masteel was suspended yesterday until further notice after it failed to submit its annual audited accounts for FY14 to Bursa Securities for public release within the stipulated timeframe, which is April 30, 2015.
If a listed issuer fails to issue the outstanding financial statements within six months from the expiry of the relevant time frames, in addition to any enforcement action that Bursa Securities may take, delisting procedures shall be commenced against such listed issuer.
Masteel had engaged UHY Advisory (KL) Sdn Bhd to conduct an independent and comprehensive review of the issues raised by external auditors Messrs Nexia SSY. The special review is expected to be completed in six weeks.
Masteel had earlier said the reason for the delay in the completion of the audit and the release of the audited financial for FY14 is that the external auditors are not able to express an opinion on the financial statements of the company for FY14 due to various issues raised by the external auditors to the audit committee and the board on April 27, 2015.
The issues pertain to the classification, description and recoverability of various transactions carried out by the company in FY14, which were only made known by the external auditors to the audit committee and the board on April 27, 2015.