KUALA LUMPUR (Jan 17): The delisting of China Automobile Parts Holdings Ltd (CAP) has been deferred after the group reissued its audited financial statement for its financial year ended Dec 31, 2015 (FY15).

In a statement today, CAP said that it received a letter from Bursa Malaysia Securities today stating that the regulator had decided to defer the commencement of delisting procedures after considering the group’s submission of its financial statements on Jan 15.

CAP’s auditor, PKF Malaysia Sdn Bhd, had reissued its report on the group’s financial statements, stating that it had discovered material liabilities in relation to its FY15 statements that were not accounted for.

This included various material litigation involving the group’s main subsidiary, Quanzhou Fensun Automobile Parts Co Ltd, PKF had said in a letter on Jan 5 which was announced by CAP on Jan 11.

These material liabilities had not been disclosed during PKF’s audit of CAP’s financial statements up to April 2016, and the auditor had subsequently sought an explanation on the non-disclosure from the directors.

“We have however not received any appropriate and satisfactory response from the directors, nor any of our requests for information to explain these discrepancies,” PKF said.

As a result, CAP became a Practice Note 17 company on Jan 11.

Shares in CAP have been suspended since June 8, 2017 as the group had failed to submit its financial report for its first two quarters of its FY17.