Eveready Industries share price was stuck at lower circuit of 5% after Price Waterhouse & Co resigned as the auditor of the firm citing its inability to assess enough audit evidence regarding the impact of inter-company financial support extended by the battery maker to its promoter group companies.
Eveready Industries share price opened at a loss of 5% and was stuck in the lower circuit of 5% at 76 level on BSE. Eveready Industries share price has been losing for the last two days and has fallen 8.43% in the period. Eveready Industries share price has lost 66.39% during the last one year and has fallen 59.39% since the beginning of this year.
"Price Waterhouse & Co has expressed its inability to continue as the auditors of the company," said Eveready Industries in a release to the stock exchanges. Following the development, the BM Khaitan flagship company has now approved the appointment of Singhi & Co, as the auditors in the place of PWC, effective June 29, the company added.
Price Waterhouse, after approving Eveready's FY19 financial results, had revealed it gave Rs 62 crore as an advance payment in order to obtain leasehold rights of a property. Eveready had to execute the deal by March 31, 2019, failing which it had the right to reclaim refund on the deal. Price Waterhouse in its auditor's report said neither the deed had been executed nor the refund claimed.
Meanwhile, Business Standard, citing sources, also said that the major difference between the company and the auditor had emerged over the recovery of inter-corporate deposits given to group companies and corporate guarantees amounting to over Rs 512.26 crore.
Edited by Aseem Thapliyal