Bursa Malaysia Securities Bhd has rejected Malaysian Merchant Marine Bhd’s (MMM) application for an additional three months for the submission of its audited accounts for the year ended March 31, 2010.
In a statement yesterday, the financially-troubled shipping company said the regulator had rejected its application as it was submitted less than 15 days prior to the due date for the submission of the annual audited accounts.
“The company has again provided the reasons for the short notice and has appealed the Bursa’s decision. The outcome of this appeal will be announced when received,” it said.
Trading of the counter’s shares was halted for an hour between 2.30pm and 3.30pm for the announcement. Its shares ended the day flat at two sen with a volume of 250,000.
MMM, a Practice Note 17 (PN17) company, had last week submitted a request for a time extension as it was unable to meet its July 31 deadline because its auditors Messrs Ernst & Young (EY) were unwilling to commence the audit process until a resolution on its outstanding audit fees was reached.
The board of MMM and the auditors had reportedly been at an impasse for the past few months over fees owed.
Last week, MMM had said the conflict had been solved, and that EY expected to complete its work by end-September 2010.
The company had been ordered to commence an external audit in April this year following some unusual developments, including a RM5.63 million lawsuit plus 8% interest per annum from its executive deputy chairman Datuk Ramesh Rajaratnam relating to his “employment contract”.
Ramesh had earlier also made claims of RM1.11 million from MMM for “advances made by him to the company”.
This article appeared in The Edge Financial Daily, August 3, 2010.
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