The Dubai-based M R Chhabria-controlled Jumbo group has decided to appoint Lodha & Company, a member of the chartered accountant firm BDO with worldwide operations, as auditors for all their major companies in India namely liquor major Shaw Wallace & Company (SWC), ailing tyre company Dunlop India Ltd, Mather & Platt and Hindustan Dorr Oliver Ltd.
The move comes following the Jumbo group decision to change the auditors for their world-wide operations from Ernst & Young to another firm.
As a global policy, the Jumbo group has decided to have only one firm of auditors for their Indian operations, the group announced yesterday.
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A decision to this effect has been taken recently in the meetings of the board of directors of the various group companies "in a bid to bring in better systems, procedures and management practices in the businesses".
"To bring in synergy in the accounting systems, co-ordination in the corporate finance and for better corporate governance, a restructuring exercise was undertaken by the group. As part of this exercise, we are now in the process of consolidating our businesses in India. SWC has already decided to concentrate on core business of liquor and beer and is consequently divesting in the non-core businesses", said M R Chhabria, chairman, Jumbo group.
Following the decision, auditors S R Batliboi, associates of Ernst & Young and till recently auditors of the Jumbo group companies, have been requested to step down as auditors of their group companies in India. Lodha & Company, who are currently auditors of two of the group companies in India _SWC and Dunlop have been entrusted with the other two major accounts of the group, that is, Mather & Platt and Hindustan Dorr Oliver.
The Jumbo group has business interests in the Middle East, south Asia, Asia Pacific, Russia and Europe. Besides SWC and Dunlop India, some of the other companies of the group are Jumbo Electronics, Supra Industrial Co, Falcon Tyres and Combi Pte Ltd.
According to an official release, the group's overseas businesses have been doing exceedingly well with India operations also being turned around. While Hindustan Dorr Oliver, Mather & Platt are the engineering businesses contributing to the exchequer, Falcon Tyres was a sick company taken over by the group and has been recording profits year after year.
Shaw Wallace & Company too has become India's major liquor company with its brands like Royal Challenge, Antiquity, DSP, DSP Black in liquor and Royal Challenge, Haywards 2000 and Haywards 5000 in beer. Efforts are on to revive Dunlop India operations.