Mirach Energy granted AGM extension on hold-up in audit of Malaysian unit

WATCH-LISTED investment group Mirach Energy has been given an extension for its FY2019 annual report and annual general meeting, as the Covid-19 pandemic stymied audit efforts.

That comes "despite having worked under a very tight schedule over the past few weeks amidst this Covid-19 pandemic situation", the Mirach board told the bourse.

Mirach now has until May 15 to release the annual report and until June 29 to hold the meeting, under a waiver from the bourse operator, the directors said in a filing on Saturday.

The company said it could not issue its report by the original deadline of April 15, as movement restrictions affected accounting firm BDO's audit of its principal subsidiary - Malaysian plantation operator RCL Kelstar - while both the local management and auditors were working from home.

BDO has also not been able to finalise its audit of RCL as it has not received unspecified "audit confirmations" for customers based in Malaysia and in China, where the pandemic began.

Even after the audit is completed, RCL's resident directors will be unable to sign off on the financial statements before commissioners for oaths. The directors cannot leave their homes to obtain these services, which in any case are also not available during the Malaysian lockdown.

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As such, "it would be unlikely for the audit of RCL to be completed before April 28", when the prolonged movement control order in Malaysia is scheduled to end, said the board.

With the new deadlines for its annual report and meeting, Mirach affirmed that the waiver will not contravene the company's constitution or any laws and regulations that govern it.