KUALA LUMPUR (Aug 11): Handal Energy Bhd (KL:HANDAL) expects to release its 2025 annual report and financial statements by Oct 15, following queries from Bursa Malaysia.
The regulator had asked Handal Energy for an update on its audit progress and expected submission date.
The new target comes as Handal Energy's external auditors expect the financial statements to be approved by the company's board by Sept 30, according to a bourse filing on Tuesday.
The two-week period from board approval to target issuance is to allow for administrative work required to finalise and issue the annual report and to allow a margin for contingencies, Handal Energy said.
The audit of the group is at an “advanced stage”, Handal Energy noted, with its statutory auditors confirming outstanding matters that need to be completed before their opinion can be finalised.
The Oct 15 target issuance date is within the Oct 30 deadline before Handal Energy faces potential delisting for having its annual report remain outstanding for six months after its due date.
Handal Energy failed to submit the annual report within four months from the close of the financial year ended Dec 31, 2025 — by April 30 — prompting a suspension in the trading of its shares since May 11.
A principal cause of the delay, the company noted, was the audit of its 30%-owned unit Tenzin Heavy Machinery (M) Sdn Bhd, by a separate firm of auditors.
The different set of auditors requires Tenzin’s audited financial statements to be issued and signed by the unit's auditors before the figures can be treated as final for the purpose of group consolidation.
“Those financial statements were signed on July 6, issued to the company on July 30 and provided to the company’s statutory auditors on the same day.
Further audit work on Tenzin, comprising the auditors' comments on its cash flow projections, verification procedures on its inventories and the assessment of expected credit losses on its receivables, is a matter that remains outstanding for the finalisation of Handal Energy’s audit.
Other outstanding matters include: the finalisation of the group’s cash flow projections; completion of the assessment of contingent liabilities in respect of material litigation, contingent liabilities and contingent assets; completion of the impairment assessment in respect of certain plant and equipment held by subsidiaries of the company; finalisation of certain accounting treatments; and remaining steps in the audit closure process.