Brahim’s: PwC’s exit as auditor part of ordinary course of business

PETALING JAYA: Brahim Holdings Bhd said the resignation of PricewaterhouseCoopers PLT’s (PwC) as its auditor was due to mutual agreement, and part of the ordinary course of business.

In a Bursa Malaysia filng, Brahim’s said PwC has been the auditor for Brahim’s SATS Food Services Sdn Bhd (BSFS), for more than 15 years. BSFS contributes more than 90% of the group’s revenue.

It explained that as part of ongoing good corporate governance initiative, Brahim’s board felt it would be timely to effect a change of auditors, and as such, had decided to appoint Messrs Baker Monteiro Heng PLT.

“A change of auditors would also enable the company to benefit from fresh perspectives and views of another professional audit firm, and thus, enhance the value of the audit of the group,” it told the local bourse.

On Nov 21, 2019 BSFS, in their board of directors meeting, agreed for change of auditors subject to the relevant formalities.

On Dec 12, 2019, the group announced the resignation of PwC and the subsequent appointment of Baker Tilly in its place.

Brahim’s board said this change

Tilly of auditors was part of the ordinary course of business and in the best interest of the company and the group.

Brahim’s statement follows an article published in a local newspaper, which highlighted that the group has lost 19.3% or RM13 million in market capitalisation the day after the announcement of PwC’s resignation.

It also stated that the group offered no reason for the resignation, which came seven months after PwC was re-appointed as auditors at Brahim’s last annual general meeting on May 4 for the financial year ending Dec 31, 2019.

Meanwhile, the group stated that it is actively pursuing the formalisation and implementation of a regularisation plan in consultation with its appointed advisors towards achieving the objective of an exit from Practice Note 17 (PN17) status.

It explained that the regularisation plan required the appointment of reporting accountants who will be carrying out in depth financial review and reports.

“The board believes that it would be expedient to have the same party as the company and group auditors,” it said.