The stock of fruit juice maker Manpasand Beverages plunged another 20% percent in early trade after its statutory auditor Deloitte Haskins & Sells resigned ahead of a board meeting scheduled on May 30 for consideration of financial results.At 9:19 am, the stock was stuck at the lower circuit of 20% or 69 points down at 275.85 on the BSE. It opened at the same level today. The stock hit its fresh 52-week low today. The stock closed at 344.80 yesterday stuck at the lower circuit of 20% on news of sudden resignation of the auditor.
The firm has lost Rs 1,989 crore in market capitalisation during the last two sessions on the BSE. On Monday, SAIF Partners-backed firm had informed the stock exchanges that Deloitte Haskins & Sells had quit as its statutory auditor with effect from May 26, 2018. Due to sudden resignation of existing auditors, the business to be transacted at board meeting scheduled on May 30 has been cancelled, it added.
The stock is down 36.84% since the beginning of this year. The stock has fallen 32.94% during the last one year. The stock has been losing for the last five days and is down 38.14% during the period.
In a letter addressed to company's board, Manpasand Beverages Managing Director Dhirendra Singh, Deloitte Haskins & Sells said that significant information" requested by us from the company at various points of time for the purposes of audit of the financial results have not yet been provided to us".
"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," it added.
"Under the circumstances, and as per our discussions with you, we are submitting our resignation as statutory auditors of the company with immediate effect," the letter said. According to a report in The Economic Times, Deloitte's sudden move was the result of not sharing of key crucial data related to capital expenditure and revenue which had been sought for at least a month. Deloitte has informed the ministry of corporate affairs about the resignation and the reasons for the same.
In third quarter of last fiscal, the firm logged 65.7% rise in net profit to Rs 12 crore.The firm reported 39.7% yoy growth in revenue to Rs 143.1crore higher than estimates.