Posted on 25 Jun 2015
Masteel’s auditors to step down
The current auditors of Malaysia Steel Works (KL) Bhd (Masteel), who
have a differing opinion from another auditor on the company’s 2014
accounts, has decided not to seek a reappointment at the upcoming AGM.
The steel bar and billet manufacturer told Bursa Malaysia that it
received the notice from Nexia SSY on Thursday, which it also attached
in its announcement. In its one-sentence letter, Nexia SSY did not give
any reason for its decision.
Masteel said the cessation of office of Nexia SSY would only take
effect upon the appointment of another auditing firm pursuant to Section
172(3) of the Companies Act, 1965.
The external auditor had raised concerns on the classification of
an amount due to a multinational commodity trader as at Dec 31, 2014
(FY14) wherein Masteel had treated as trade deposits.
However, special auditor UHY FLVS Sdn Bhd, hired by Masteel on
April 30, was satisfied that the advance payments received from the
commodity trader had been correctly accounted for Masteel as trade
deposits in accordance with the Malaysian Financial Reporting Standards.
Last week (June 17) Masteel said that its audit committee and
board, having reviewed UHY’s report, agreed with UHY’s findings and were
liaising with Nexia on the release of its delayed audited financial
statements for the year ended Dec 31, 2014.
On June 19 Masteel announced its annual audited accounts to Bursa
Malaysia, with Nexia SSY reiterating its qualified opinion and adding
UHY’s opinion.
