The auditor of Manpasand Beverages Ltd. resigned because the maker of juices didn’t share “significant information” sought by Deloitte Haskins & Sells for auditing its financial statements.
The company didn’t disclose that when it informed the exchanges about its auditor’s decision to quit just four days before the board was to approve results for the quarter ended March. In a separate statement, the maker of Mango Sip even called it “coincidental” and a “minor hiccup”. But Deloitte Haskins & Sells’ filing to the Registrar of Companies reveals the actual reason.
“We would like to bring to your attention that significant information requested by us from the company at various points of time for the purpose of audit of the financial results have not yet been provided to us,” according to the auditor’s letter addressed to Dhirendra Singh, managing director at Manpasand Beverages.
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.Deloitte Haskins & Sells Filing
Manpasand Beverages didn’t immediately respond to BloombergQuint’s emails on why it didn’t disclose the details of the auditor’s letter in its exchange filing.
Shares of Gujarat-based Manpasand Beverages plunged 20 percent after it informed the exchanges that its auditor since listing had resigned. The company, with a market capitalisation of about Rs 4,000 crore, had informed the exchanges on May 23 that its board will meet on May 30 to consider and approve the quarterly results.
After Deloitte Haskins & Sells stepped down, the juice maker appointed Delhi-based Mehra Goel & Co as its auditor. It rescheduled the May 30 board meeting and will inform the exchanges about the revised date in due course, the company said in a statement.