SMTrack: “We replace our resigned external auditor almost immediately”

RADIO frequency identification (RFID) solution specialist SMTrack Bhd has assuaged its shareholders/investors that there is nothing alarming with the recent resignation of Russell Bedford LC PLT as the company’s external auditor.

This comes following a brief StarBiz report about Russell Bedford’s resignation having sparked undue concern that there was something amiss with SMTrack’s business operations, according to a company spokesman.

“We had actually intended to announce both the resignation and appointment of our new auditor on the same day,” the spokesman who spoke on condition of anonymity told FocusM. “But some complications arose which forced us to only be able to unveil our new external auditor one day apart.”

In a Bursa Malaysia filing on Monday (March 20), SMTrack said it received a resignation notice in writing from its former external auditor 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 pointed out.

“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.”

Added SMTrack: “Save for the above, there are no other matters that need to be brought to the attention of the shareholders of the company in respect of the auditor’s resignation.”

Due to the unforeseeable delay, SMTrack 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 (AGM) of the company,” added SMTrack in its subsequent stock exchange filing.

Commenting on the company’s business direction moving forward, the spokesman said SMTrack is excited to embark on the food & beverage (F&B) business although it has no prior experience in the area.

This follows the company’s share sale and purchase agreement with entrepreneur Abdul Halim Ahmad on Oct 25 last year to acquire a stake in AHA Food & Beverage Sdn Bhd (AHAFB) which is the operator of ‘Nasi Ahmad’ restaurants which specialise in selling 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,” added the spokesman.

At the close of yesterday’s trading (March 22), SMTrack was unchanged at 4 sen with 1.16 million shares traded, thus valuing the company at RM471 mil. – March 22, 2023

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