KUALA LUMPUR (May 19): Chengco PLT has resigned as Euro Holdings Bhd's (KL:EURO) auditor due to the suspension of the audit firm's registration by the Audit Oversight Board (AOB) of the Securities Commission Malaysia.

The AOB prohibits the firm from conducting audits of public interest entities and scheduled funds, according to the furniture maker’s bourse filing on Monday.

Euro said it had received a notice dated May 15 from Chengco of its resignation as auditors of the company with immediate effect.

"The board will take the necessary steps to appoint new auditors to fill the casual vacancy, which will be announced in due course," it added.

Chengco was appointed as external auditors of the company on June 8, 2023, following the resignation of Messrs Moore Stephens Associates, whose term ended 21 days after May 10, 2023. 

Chengco was reappointed at the 20th annual general meeting (AGM) held on Dec 17, 2024, to serve until the conclusion of the next AGM.

Euro is primarily engaged in the manufacturing and trading of office furniture, offering workspace solutions to its customers. The company owns and operates a combined manufacturing and warehouse facility in Rawang, Selangor, and leases two buildings in Melaka — one serving as a manufacturing plant and warehouse, and the other as a showroom.

Its steel furniture division Eurosteel Line Sdn Bhd has specialised in producing steel storage cabinets since Oct 2020.

At midday break on Monday, Euro's share price remained flat at 5 sen, giving the group a market capitalisation of RM66.4 million. The counter has declined 28.57% year-to-date.