Multi-Usage auditor resigns after audit fee disagreement

Multi-Usage auditor resigns after audit fee disagreement
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KUALA LUMPUR (June 21): The external auditor of Multi-Usage Holdings Bhd Messrs Baker Tilly Monteiro Heng (Baker Tilly) has resigned “due to (a) disagreement in fixing audit fees.” 

In a filing with Bursa Malaysia, Multi-Usage said Baker Tilly had given their resignation notice in writing today. In line with Section 281 of the Companies Act 2016 which deals with the resignation of auditors, the auditor’s departure is with immediate effect, the filing added. 

Except for disagreement over audit fees, Multi-Usage said it is not aware of any other matters needful to be brought to the attention of the shareholders. 

“Further announcement relating to the appointment of the new auditor would be made by the company in due course,” Multi-Usage added. 

On Nov 13, 2017, Baker Tilly had expressed a qualified opinion on Multi-Usage’s financial statements as at June 30, 2017, as it was unable to obtain sufficient audit evidence relating to a debt restructuring exercise involving the company and a special purpose vehicle that was carried out over 2008-2009.

The debt restructuring exercise, which is now part of a litigation case in court, involved outstanding loans dating back as far as 2005. 

The outstanding loans included a default in interest and principal payments for certain bank borrowings, as well as bank overdrafts. 

Listed on the Main Market, Multi-Usage fell 4.5 sen or 8.41% to 49 sen today, for a market capitalisation of RM27.65 million.