Rotol Singapore said the Singapore Exchange has rejected the company’s request to be given a 12-month extension to improve its financials and be removed from the watch-list.

In its letter to Rotol, SGX noted that the company’s pre-tax profit of $3.9 million for the financial year ended 31 March 2010 included non-recurrent income, which ought to be excluded according to Rule 1314(1) of the Listing Manual.

As such, SGX said Rotol would have reported a loss before tax if gains from sale of marketable securities of $3.4 million and the profit from disposal of property, plant and equipment of $3.8 million are excluded.

Moreover, the company’s daily market capitalisation was less than $33 million over the past six months.

As the two conditions were not met, SGX said it is unable to grant Rotol the extension.

Rotol must now make the necessary arrangements to delist by June 30 and it will be removed from the Official List on July 1 or the market day immediately following the completion of the cash exit offer to shareholders, whichever is the earlier.

Trading in the company’s securities will also be suspended from July 1.