As follow up to the announcement made on 8 April 2014 pertaining to the fire incident, the Company would like to inform that the Company has a total of 5 production plants located in The People’s Republic of China (“PRC”) measuring approximately 50,000 square metres in total area, of which the area of the plant gutted by the fire measuring approximately 10,000 square metres, constituting 20% of the total floor area.
The fire did not spread to the other production plant of the Company. The production capacity of the affected plant represents 40% out of the total production capacity of all the plants of CSL for 2013 financial year.
The affected production plant is currently sealed off by police authority of PRC and prohibited from entrance by outsiders save for the investigating police. In view thereof, Management of CSL and insurance representatives are unable to access to the scene to ascertain the total damage caused by the fire incident as of to-date.
There is insurance coverage against the damage caused by fire to the equipment, raw materials and finished products housed and/or kept in the affected plant. The Company and the insurance company are unable to ascertain the amount of damage and loss to the equipment, raw materials and finished products due to the current inaccessibility to the affected plant. Nevertheless, the Company is preparing for remedial works to commence once the affected plant is allowed for access by the PRC police. In addition, the Company also wishes to inform that the services offered by the insurance company in PRC , would not cover for loss of business income applies to the loss suffered by the Company during the time required to repair or replace the damaged property.
Management of the Company is in the midst of liaising with the customers of the Company in regard to the fire incident and looking for their understanding on such incident. As at the time of this announcement, none of the customers have initiated legal proceedings to demand for compensation in view of the delays in fulfilling their orders due to the fire incident.
Following the fire incident, the External Auditors of CSL are unable to proceed with their planned schedule to obtain walk-in bank confirmations, sight of fixed assets, as well as complete their audit fieldwork for the Company’s PRC subsidiaries in which the procedures are crucial for them to form and issue an audit opinion on the Company and its Group’s financial statements for the financial year ended 31 December 2013.
In view thereof, the Company has on 17 April 2014 submitted an application for extension of time for a period of two months from the respective deadlines for issuance of the Audited Financial Statements for year ended 31 December 2013 and Quarterly Results for the period ended 31 March 2014, in order to comply with Paragraph 9.23(2) and Paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. An announcement was released to Bursa Malaysia Securities Berhad (“Bursa Securities”) on 17 April 2014 concurrently.
The Board also wishes to highlight that Bursa Securities has via its letter dated 30 April 2014, resolved to grant CSL an extension of time of:
(i) two (2) months from 1 May 2014 until 30 June 2014 ("Extended Deadline") to announce its Audited Financial Statements for the financial year ended 31 December 2013 ("AFS"), which is due on 30 April 2014; and
(ii) two (2) months from 1 June 2014 until 31 July 2014 ("Extended Deadline") to announce the first quarterly report for the financial period ended 31 March 2014 ("1st quarterly report"), which is due on 31 May 2014.
subject to the condition that CSL be required to announce the monthly updates on the progress of the police investigation report and the steps taken or proposed to be taken to issue the outstanding AFS and 1st quarterly report before the Extended Deadline pursuant to paragraph 9.28(4)(b) of the Main Market Listing Requirements of Bursa Securities.
This announcement is dated 8 May 2014.