No extension of time for issuance of annual report, Bursa tells Top Builders Capital

• It cited extensive time taken by the new management team to assess the adequacy of information/documents required for finalising the audited financial statements as reason.

KUALA LUMPUR (Oct 25): Bursa Securities has rejected piling and foundation contractor Top Builders Capital Bhd’s request to extend the issuance of its Annual Report 2022 by another one month to Nov 30, from the stipulated time frame of Oct 31.

In a stock exchange filing, Top Builders, formerly known as Ikhmas Jaya Group Bhd, said it is currently working with auditors to revise the timeline for completing its audited financial statements before the Oct 31 deadline.

“Failing which, the company will make the necessary announcement relating to delay in issuing the Annual Report 2022 at least three market days before the deadline,” it added.

Top Builders had on Oct 14 submitted to Bursa an application for an extension of time to submit its Annual Report 2022 that included the annual audited financial statement for the financial year ended June 30, 2022 (FY22), together with the auditors’ and directors’ reports.

It cited extensive time taken by the new management team to assess the adequacy of information/documents required for finalising the audited financial statements as reason. This includes reaching out to project customers to assess the status of projects, collectability of debts, fixed asset listing and reconciliation with creditors.

Top Builders, a Practice Note 17 company, is still in the midst of formulating a regularisation plan to address its financial condition. Top Builders first triggered the PN17 criteria in June 2020, when its external auditor, KPMG PLT, had expressed doubts about the company’s ability to continue as a going concern, as the loss-making company’s current liabilities exceeded its current assets by RM21.6 million.

At the same time, the company’s equity on a consolidated basis was less than 25% of its share capital.

Nevertheless, its latest results for FY22 showed that Top Builders had returned to the black, posting a net profit of RM150.39 million — after four consecutive years of net losses since FY18 — while revenue stood at RM19.63 million.