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Infibeam fires EY affiliate as auditor for sharing price-sensitive info

SRBC & Co LLP, an affiliate of global auditing major Ernst & Young, denied the charges, and said it was open to regulatory scrutiny and would respond to the regulators, as required

twitter-logo BusinessToday.In        Last Updated: May 6, 2019  | 13:54 IST
Infibeam fires EY affiliate as auditor for sharing price-sensitive info

Infibeam Avenues termintaed services of chartered accountancy firm SRBC & Co LLP as one of its joint statutory auditors over alleged sharing of unpublished price-sensitive information. The termination is subject to the approval of Central government, other relevant regulatory authorities and the shareholders of the company, the e-commerce company said in a regulatory filing.

"Infibeam Avenues Limited today informed to the Stock Exchange(s) that the Board of Directors in its meeting held today has recommended subject to approval of regulatory authorities and shareholders, to terminate Company's joint statutory auditor SRBC & Co, LLP, Chartered Accountants on the grounds of sharing Company's Unpublished Price Sensitive Information ("UPSI") with personal email accounts of their team and third party on multiple occasions leading to breach of trust and loss of faith," the e-commerce firm said in a statement on Sunday.

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Infibeam said it received anonymous third-party information about its UPSI being shared by SRBC & Co LLP to third party and personal e-mail accounts of the auditor's team on multiple occasions. The company then shared its preliminary findings with the auditor, which has been verified and confirmed, pursuant to internal investigation, Infibeam said in its statement.

"The Board was also not convinced on the Auditor explanations, processes and conduct leading to unauthorised sharing of company's UPSI (unpublished price-sensitive information)," it added.

An extraordinary general meeting of Infibeam Avenues has been convened on May 30, 2019, for seeking shareholders approval for terminating SRBC & Co LLP as an auditor of the company.

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Infibeam, further, said that Shah & Taparia shall continue to be the statutory auditor of the company.

Meanwhile, SRBC & Co LLP, an affiliate of global auditing major Ernst & Young, denied the charges in a statement. The audit firm said it was open to regulatory scrutiny and would respond to the regulators, as required.

"We strongly deny the allegations against us. We have conducted a comprehensive investigation and stand by our findings. We are confident of our position and are open to a third party/regulatory inspection and will respond to the regulators, as required," SRBC & Co LLP said in a statement.

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