On May 26, 2018, Deloitte Haskins & Sells India had quit as the auditor to Manpasand Beverages a few days before the declaration of annual results for the year ended March 2018 on May 30. The auditor put their resignation due to lack of information provided the company for the purposes of audit of the financial results.
The board of directors of Manpasand Beverages upon the recommendation of the Audit Committee had appointed Mehra Goel & Co as statutory auditor of the company with effect from May 27, 2018 to fill the casual vacancy in the office of statutory auditors, who shall hold office as such till the conclusion of the ensuring Annual General Meeting (AGM).
For the first nine months (April to December) of the financial year 2017-18, Manpasand Beverages had posted 38% year on year jump in net profit at Rs 569 million, on back of 27% growth in operational revenue at Rs 5,704 million over the previous fiscal.
“Deloitte Haskins & Sells India has been auditors of the company since FY11. Contradictory statements have been made by the company and the auditors on the resignation have made us uncomfortable with the previous BUY rating. As a result, we put our rating UNDER REVIEW until we get clarity from Q4FY18 earnings and further update from the annual report of FY18,” analyst at Karvy Stock Broking said in post event update.
Till 01:18 pm; the trading volumes on Manpasand Beverages jumped nearly three-fold with a combined 4.41 million shares changed hands on the BSE and NSE. There were pending buy orders for 700,369 shares on both the exchanges.