In a bourse filing today, the construction and property development group said Bursa Securities approved today its application for a further extension of time to Feb 29, 2024 to submit its regularisation plan.
The filing said Bursa Securities reserves the right to suspend the trading of its shares and de-list the company if it fails to:
- Submit its regularisation plan to the regulatory authorities on or before Feb 29, 2024;
- Obtain the approval from any of the regulatory authorities for the implementation of its regularisation plan; or
- Implement its regularisation plan within the time frame or extended time frame stipulated.
In another bourse filing yesterday, Ireka said its external auditors, Baker Tilly Monteiro Heng PLT, expressed a disclaimer of opinion on its audited financial statements for the year ended June 30, 2023.
In its report, Baker Tilly noted that Hong Leong Bank Bhd and AmBank (M) Bhd have filed a suit against Ireka and its unit Ireka Engineering & Construction Sdn Bhd.
“These events or conditions indicate the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as going concerns,” the auditors said.
The two banks claimed RM4.24 million from the group, comprising a claim on overdraft facilities amounting to RM3.1 million and a claim on revolving credit amounting to RM1.14 million.
Ireka said it expects to “address all issues” related to Baker Tilly’s disclaimer of opinion by FY2024.
The auditor’s report noted that as at June 30, the group’s current liabilities exceeded its current assets by RM48.7 million, and recorded a capital deficiency of RM44.9 million.
It stated Ireka had triggered the PN17 criteria in February last year as the group’s shareholders’ equity was 50% or less than its share capital.
In January this year, the group reported that the RM163.9 million contract awarded by Regency Specialist Hospital Sdn Bhd to Ireka Engineering & Construction in June 2020 had been terminated.
In a Bursa filing on Jan 4, Ireka said the termination came as a result of a determination letter dated Dec 21, 2022 from Regency Specialist Hospital due to the “non-completion and failure to rectify” certain clauses of the contract.
Ireka’s share price ended 1.5 sen or 2.94% lower at RM0.50, giving it a market capitalisation of RM112.75 million.