Auditing major Deloitte Haskins & Sells resigned as statutory auditors of Manpasand Beverages as the fruit juice maker failed to provide them with "significant information" on the financial results for the year ended March 31, 2018.
In a letter addressed to company's board, Manpasand Beverages Managing Director Dhirendra Singh, Deloitte Haskins & Sells 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 the statutory audit of the financial statements of the company for the year ended March 31, 2018 by May 30, 2018," it added.
"Under the circumstances, and as per our discussions with you, we are submitting our resignation as statutory auditors of the company with immediate effect," the letter said.
The board meeting on Manpasand Beverages, to consider and approve the financial results for the year ended March 31, 2018, was scheduled to be held on May 30. However, the said meeting now stands cancelled.
Shares of Manpasand Beverages plunged 20 per cent today on account of resignation by the auditing firm with effect from May 26, 2018. The stock of SAIF Partners-backed company hit the lower circuit and closed at Rs 344.80 apiece on BSE today.
In a filing to the BSE today, Manpasand Beverages said: "It is very unfortunate that we had to part ways with our long-term associate. 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 Vadodara-based firm further said: "We want to take this opportunity to assure everyone that the decision has been taken by the management after due consultations and it is in the best interests of our shareholders."
Manpasand Beverages claimed everything related to financial results announcement and the timing of departure of its auditor "is purely coincidental has no direct correlation".
Manpasand Beverages said this is just a minor hiccup and doesn't represent any long-term business impact.
Deloitte Haskins and Sells LLP, was also the auditor of cash-strapped Fortis Healthcare and had allegedly refused to sign off on the company's second-quarter results until at least USD 78 million (Rs 500 crore) funds taken its promoters Singh bothers (Malvinder and Shivinder) were accounted for or returned.
The healthcare chain, however, had refuted these allegations.
Last month, another auditing major Price Waterhouse had quit audit mandate of technology firm Vakrangee Ltd over concerns related to its bullion and jewellery business, even as the company had denied any irregularities.
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