SMTrack: We replace our external auditor almost immediately

NST Wed, Mar 22, 2023 07:28pm - 1 year View Original


KUALA LUMPUR: Radio frequency identification (RFID) solution specialist SMTrack Bhd has assuaged its shareholders and investors that there is nothing alarming with the resignation of Russell Bedford LC PLT as its external auditor.

This followed a brief StarBiz report about Russell Bedford's resignation, sparking concern that there was something amiss with SMTrack's business operations. 

A company spokesperson said SMTrack had intended to announce both the resignation and appointment of its new auditor on the same day.

Some complications, however, had forced the company to only be able to unveil the new external auditor one day apart, the spokesperson added.

In a Bursa Malaysia filing on Monday, SMTrack said it had received a resignation notice from Russell Bedford pursuant to Section 281(2) of the Companies Act 2016 which would be effective on the same day (March 20).

"The resignation of Russell Bedford is on voluntary basis due to resources constraint to allocate time to carry out audit for our newly-acquired (beauty and wellness) subsidiary namely V Ultimate Sdn Bhd," SMTrack said.

"This is more so as Russell Bedford has yet to receive the management accounts for V Ultimate and its subsidiaries to-date for them to finalise the audit for the financial year ended Dec 31, 2022."

SMTrack added that save for the above, there were no other matters that needed to be brought to the attention of its shareholders in respect of the auditor's resignation.

Due to the unforeseeable delay, SMTrack said it had only managed to announce the appointment of Chengco PLT as its new auditor the following day (March 21) pursuant to Section 264(5) of the Companies Act 2016.

"(Chengco) has been appointed as the auditors of the company with effect from March 17 and shall hold office until the conclusion of the next annual general meeting of the company," SMTrack said in its subsequent stock exchange filing.

On its business direction moving forward, the spokesperson said SMTrack was excited to embark on the food and beverage (F&B) business although it had no experience in the area.

The company signed a hare sale and purchase agreement with entrepreneur Abdul Halim Ahmad on Oct 25 last year to buy a stake in AHA Food & Beverage Sdn Bhd.

AHA Food is the operator of 'Nasi Ahmad' restaurants, specialising in nasi kandar with two operating outlets in Selangor.

"The group plans to expand the business by opening additional Nasi Ahmad outlets across Klang Valley and Putrajaya," the spokesperson said.

At the close of today's trading, SMTrack was unchanged at four sen with 1.16 million shares traded, valuing the company at RM471 million.

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