KUALA LUMPUR (Jan 31): Smile-Link Healthcare Global Bhd (KL:SMILE), a LEAP Market-listed dental services provider, is in the process of selecting a new auditor to finalise its financial statements for the period ended June 30, 2024.
This follows the approval of resolutions at the company's extraordinary general meetings (EGMs) on Jan 20 and 24 to remove its current auditor HLB Ler Lum Chew, according to a filing with Bursa Malaysia.
The proposal to remove the auditor was announced last month, prompted by significant delays in the company's financial statement, which resulted in trading suspensions and increased regulatory scrutiny.
On Dec 12, Smile Link Resources (M) Sdn Bhd, which holds a 46.36% stake in the company, issued a special notice calling for an EGM to remove HLB Ler Lum Chew. Smile-Link claimed that the auditor had not made any representation regarding the proposed removal.
Smile-Link also alleged that the auditor had withheld the release of its financial results due to an outstanding audit fee of RM180,000, which the company was unable to settle.
In response, HLB Ler Lum Chew stated in a letter sighted by The Edge that it had received the special notice, but this was immediately retracted following another email from the company secretary on the same day. The auditor explained that this retraction was why it had not issued any written statement regarding the matter. Additionally, it will issue a legal notice in relation to what it termed an "untrue" statement.
Smile-Link had failed to submit its audited financial statements for the period ended June 30, 2024, by the Oct 30 deadline. As a result, Bursa Malaysia suspended the trading of Smile-Link’s shares on Nov 8, citing the company's non-compliance with financial reporting requirements.
Smile-Link was last traded at 13 sen, giving the company a market capitalisation of RM32.8 million.