Astral Supreme unable to meet deadline for audited accounts

by **Cals** Wed 07 May 2014, 22:52

Business & Markets 2014

Written by Levina Lim of theedgemalaysia.com

Wednesday, 07 May 2014 10:06

KUALA LUMPUR: Astral Supreme Bhd (ASB) said yesterday it will not be able to submit its annual audited accounts for the financial year ended Dec 31, 2013 (FY13) by tomorrow — the deadline for submission.

The latest announcement means trading of ASB’s shares will be suspended on Friday until further notice.

Interestingly, ASB’s share price rebounded yesterday, gaining 21.7% to close at 14 sen with 29.5 million shares changing hands. Its share price has fallen from a recent peak of 23.5 sen in February to a low of 11.5 sen on Monday.

The reason for the failure to submit the audited accounts is that there is insufficient information regarding its accounts and unresolved inter-company debts of its Cambodian associate.

The electronic products manufacturer has appointed Messrs PKF Advisory Sdn Bhd to conduct an investigative review into certain transactions and balances of the company in respect of the audit for FY13.

This follows ASB’s external auditors, Messrs Morrison Anuaral Azizan Chew & Co, highlighting the need for further information pertaining to certain unusual sales transactions and outstanding trade receivables of its Cambodian associate, Sing Guan Silk Screen (Cambodia) Pte Ltd.

The associate also had unusual large payments, deposits without supporting documentation and unresolved inter-company debts.

It said Messrs PKF Advisory would assist the audit committee to investigate these matters, to further deliberate and decide on the appropriate course of action following the findings.

The investigative review commenced on Monday and is expected to be completed within a week.

In March, ASB saw some changes in its boardroom and audit committee. Prior to the boardroom changes, the company’s single largest shareholder Ong Tai Chin, who is also its former managing director, sold his 26.28% stake in January.

Datuk Chai Woon Chet was redesignated as managing director from his previous position as executive director, while Wong Kwai Wah was redesignated as executive director from non-executive director.

There were other new appointments to the board, with Datuk Ng Aun Hooi appointed as director, and Andrew Lim Piow Tiang and Chong Loong Men as independent and non-executive directors.

Lee Heng Khen, a non-independent and non-executive director resigned due to other business commitments.

ASB’s unaudited accounts show that the company suffered a net loss of RM10.08 million for FY13 compared with a small net profit of RM363,000 the year before. Revenue dropped to RM8.99 million from RM10.96 million previously.

This article first appeared in The Edge Financial Daily, on May 7, 2014.