Masteel shares suspended for failing to submit audited accounts

PETALING JAYA: Trading in Malaysia Steel Works (KL) Bhd (Masteel) shares will be suspended today following the company’s failure to submit its annual audited accounts for the financial year ended Dec 31, 2014 (FY14).

Despite the suspension, investor sentiment toward the stock was not affected yesterday as Masteel shares closed half-a-sen higher at 62 sen.

In a statement to Bursa Malaysia yesterday, Masteel, which manufactures and markets high tensile steel bars, mild steel bars and prime steel billets, said it was informed by the local bourse that trading in the company’s shares would be suspended effective 9am today until further notice.

According to sources, the company’s failure to submit its annual audited accounts was probably due to disagreements with its auditors with regards to treatment of certain items in Masteel’s balance sheet.

“This includes, among others, provisions for debtors and treatment of liabilities,” said the source.

On April 27, Masteel announced that it was delaying the filing of its annual accounts as well as the auditors and directors’ report for FY14 beyond the filing deadline of April 30 due to external auditors requiring more information.

“The company wishes to provide more time for the external auditors to complete its annual audited financial statement for FY14. The company is working with the external auditors to finalise the audit,” the company said in a statement last month.

Masteel added then that it expected its audited financial statement for FY14 on or before May 11.

The company later on announced that it had engaged special auditor UHY Advisory (KL) Sdn Bhd to conduct an independent and comprehensive review on the company’s financial statements for FY14.

Masteel said UHY Advisory had been engaged to facilitate the external auditors’ provision of an opinion on its financial statements.

The company expected the special review to be completed in six weeks and would be making an application to the stock exchange to seek an extension of time up to June 30 to issue its accounts.

For FY14, Masteel recorded a 42% decline in net profit to RM15.8mil compared with FY13. Revenue for the period increased to RM1.45bil from RM1.38bil previously.