Shares of Eveready Industries fell 5 percent on Monday after Price Waterhouse & Co Chartered Accountants LLP (PwC) resigned as the auditor of the company citing insufficient evidence of inter-company deposits.
At 11:30 AM, the stock was trading 4.94 percent lower at Rs 75.95 per share. In the last one year, the stock price has tanked 66 percent.
PwC had enquired about transactions worth Rs 62 crore that the company had made according to the auditor's report attached with the March quarter's financial result.
In the March quarter results, the auditor stated, "The holding company has given advance amounting to Rs 6,200 lakhs to a company, on the basis of a memorandum of understanding (MoU) towards transfer by way of assignment, the leasehold rights of a property. The deed of assignment was initially agreed to be executed prior to the year-end, failing which the company had a right to cancel the MoU and claim refund of the advance. however, neither has the deed been executed not the refund claimed by the holding company."
As per the auditor, the company did not provide "sufficient audit evidence" regarding the possible loss/impairment due to the leasehold transaction.
PwC refused to give an opinion on the financial statement.
Eveready Industries India Ltd has replaced PwC with a Mumbai-based audit firm Singhi & Co as the auditor, the company said in a BSE filing on Saturday.
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