Manpasand Beverages remains under pressure; stock plunges 42% in 3-days

The stock hit fresh 52-week low of Rs 248 today, tanked 42% in past three trading days from Rs 431 after the Deloitte Haskins and Sells resigned as auditor of the company with effect from May 26, 2018

Manpasand Beverages was locked in lower circuit for the third straight day, down 10% at Rs 248, also its fresh 52-week low on the BSE. The stock tanked 42% in past three trading days from Rs 431 after the Deloitte Haskins and Sells resigned as auditor of the company with effect from May 26, 2018. The auditor put their resignation due to lack of information provided the company for the purposes of audit of the financial results.

Manpasand Beverages informed on Sunday that the board meeting scheduled on Wednesday, May 30, 2018 to consider audited financial results and to recommend dividend, if any, has been cancelled, due to sudden resignation of existing auditors.

Everything related to financial results announcement and the timing of this event is purely coincidental and has no direct correlation. The board meeting has been postponed and the new date will be announced shortly, the company said on Monday in a regulatory filing.

However, auditor Deloitte Haskins and Sells in letter date May 26, 2018 said that significant information requested by us from the Company at various points of time for the purposes of audit of the financial results have not yet been provided to us. 
 

“We observe that there has been no further progress with respect to the pending information, evidences and explanations. Therefore, as informed to you, we would be unable to complete statutory audit of the financial statements of the company for the year ended March 31, 2018 by May 30, 2018,” it added.

Deloitte has been auditor of Manpasand Beverages for 8 long years, and we have been providing all required information as and when required by them. While there could have been some delays but we have never denied sharing any information with them ever, the company said on clarification on the same.

Till 12:54 pm; a combined 81,830 equity shares changed hands and there were pending sell orders for 1.66 million shares on the NSE and BSE. The exchanges have revised the circuit filter of the scrip from 20% to 10% with effective from today.