Talwalkars Group Firm’s Auditor Resigns
Talwalkars Better Value Fitness Ltd.’s auditor resigned on Tuesday, weeks after the company defaulted on interest payments.
M.K. Dandeker & Co. resigned citing that it did not receive “satisfactory/substantive responses” for their queries raised from those charged with governance and management during the audit of the company’s accounts for the year 2018-19, the fitness company said in an exchange filing.
The auditor, in its resignation letter, said they were forced to issue their audit report with “disclaimer of opinion” due to lack of responses. The company had tendered its resignation on Aug. 16.
Earlier this month, Talwalkars Group firms said they had defaulted on interest payments worth Rs 3.44 crore. While Talwalkars Better Value failed to pay interest of nearly Rs 94 lakh, Talwalkars Healthclubs defaulted by as much as Rs 2.5 crore, which was due on July 31.
The group has net debt worth around Rs 719.4 crore against Rs 139 crore of cash and investments, according to its annual report for the year ended March 2019.
ICRA Ltd., in February, downgraded Talwalkars Better Value Fitness’ NCDs worth Rs 80 crore to ‘A-’. It then said the negative outlook reflects the slow progress in asset monetisation plans. The company’s statutory auditors, Lakdawala & Associates, resigned immediately citing lack of infrastructure for audit requirements.