KUALA LUMPUR (Nov 21): Kucingko Bhd (KL:KUCINGKO), a 2D animation production company, has decided to discontinue the services of its external auditor Messrs Russell Bedford LC PLT over a disagreement on audit fees.

In a filing with Bursa Malaysia on Thursday, the ACE Market-listed company said pursuant to its decision, Russell Bedford has submitted its resignation as external auditor of Kucingko after serving for five years.

"Notwithstanding the above, the board of directors believes that rotation of auditors after a specified number of years is a good corporate governance practice, and is strongly encouraged, in view that Russell Bedford has been the external auditor of the group for the past five years," it added.

It said the company is in the midst of appointing a new external auditor and further announcement will be made in due course.

Kucingko shares closed down one sen or 3.45% at 28 sen on Thursday, giving it a market capitalisation of RM137.67 million. The stock has fallen 50.88% so far this year.