Infinity Logistics and Transport Ventures Limited (INFINITY L&T) issued a supplemental announcement on 15 May 2026 detailing the process and justification for appointing Nexia as external auditor for the financial year ended 31 December 2025 (FYE2025). The clarification follows the resignation of former auditor Kreston Malaysia on 30 October 2025.
Key points are as follows:
• Chronology of events – August 2025: Kreston Malaysia said its engagement partner would leave on 31 October 2025, resulting in insufficient HKICPA-qualified personnel. – September 2025: Kreston signalled intention to resign; the Company contacted two alternative firms, which declined due to resource constraints. Nexia, to be joined by the former Kreston engagement partner, submitted its proposal. – 7 October 2025: INFINITY L&T sought a “no-objection” letter from the Stock Exchange. – 12 November 2025: Exchange granted the no-objection. – 4 February 2026: Accounting and Financial Reporting Council (AFRC) issued approval-in-principle. – Board formally approved Nexia’s appointment after professional clearance.
• Audit fee comparison – Kreston proposal for FYE2025: RM0.44 million. – Nexia proposal (inclusive of ISA 510 opening-balance work): RM0.48 million. The Audit Committee deemed the 9% premium reasonable given additional procedures and resources.
• Audit scope and timetable – Planning: February 2026. – Fieldwork: March 2026. – Completion: early April 2026, enabling the results announcement on 10 April 2026. Key focus areas include revenue recognition, receivables recoverability, loans and borrowings, multi-location coordination, and verification of opening balances.
• Quality safeguards – Partner-led model with a two-tier review system (manager and engagement partner). – Engagement team: one engagement partner, a supporting partner, one senior manager, three seniors and two assistants; supplemented by Hong Kong affiliate Fan, Chan & Co. for technical matters. – Compliance with International Standards on Quality Management 1 (ISQM 1) and the International Code of Ethics. – Risk-based audit approach tailored to the Group’s logistics operations.
• Independence and competence assessment – No financial, business or personal relationships identified between Nexia (or its team members) and INFINITY L&T. – Nexia’s 12-partner practice audits approximately 10 listed entities and has prior experience with listed logistics companies. – Historical reprimands involving Nexia and certain partners were reviewed; remedial measures—including strengthened documentation and internal monitoring—were accepted by the Audit Committee.
The Board states that the supplemental information contains no material omissions and no further matters require shareholder attention.
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