It will be submitting its application to Bursa to regularize its PN17 status in Sept 2014 after its shareholders approved a proposed rights issue at an EGM to raise funds for its working capital requirements.
The proposed rights issue is expected to bring in proceeds ranging from rm15 million to rm21 million.
The premium office furniture manufacturer slipped into PN1 status when it defaulted on the repayments of its bank borrowings amounting to rm4.83 million.
The company had been making loss in its financial year ended June 30 2013, is on the road to recovery and a healthier financial performance can be expected for FY2014.
It is expecting its bank debts level with regard to bank debts to be less than rm5 million in FY2014.
For its third quarter ended March 31 2014 the company recorded a profit of rm605000 on the back of rm11.15 million in revenue.
More than 85% of its revenue is generated from export sales to SEA, the Middle East, Americas and India which is due to cash flow constraints and export markets value its high quality furniture better.
The company has secured contracts to provide furniture to several well known companies like PBB, Petronas Carigali Sdn Bhd and BASF Global.
The company is not planning to go upstream in India by setting up a manufacturing facility there in 2015.