Eveready Industries, the moment is opened for trading, was locked at the 5% LC at Rs.76. Its 52-week is not too far at Rs.66.65.
The company, after its Board Meeting on Saturday, announced that its auditord, PwC have resigned.
The reason cited, “inability to obtain sufficient audit evidence of inter-company deposits and its recovery.”
Eveready has appointed Singhi & Co Chartered Accountants as its auditor with effect from June 29, 2019.
The Audit Report stated that as at 31st March 2019, its inter-corporate deposits stood at Rs.231 crore and corporate guarantees were at Rs.283 crore – this means Rs.513 crore worth of money is recoverable from group companies. The main bone of contention was that the company had given Rs.62 crore as advance to another company to get the leasehold rights of a property. PwC stated that the deal has been executed by end of FY19 and that has not happened, giving the company a right to either cancel the deed or claim refund. PwC stated that the company did neither.