Manpasand's books give true & fair view of firm: Mehra Goel & Company

Manpasand had to defer its Q4 results as Deloitte had resigned, putting the stock under pressure

Manpasand Beverages, in the news recently for the resignation of its auditor Deloitte, released its fourth-quarter and full-year results for FY18 on Wednesday, with its new auditor raising no red flag.

Mehra Goel & Company, appointed after Deloitte quit last month, has said in its two-page independent report attached with the Q4 and full-year FY18 results that the statements give a true and fair view of the company’s financial position. 

It added that it is in conformity with Ind-AS and other accounting principles. Deloitte had said while resigning before Manpasand’s Q4 results were declared on May 30 that “significant information” requested by it from the company at various points in time were not provided.

The issue also came under the regulatory scanner with the corporate affairs ministry and markets regulator Securities and Exchange Board of India (Sebi) beginning separate investigations into the matter.

On Wednesday, Mehra Goel and Company said that the comparative financial information of Manpasand for the quarter and year ended March 2017, included in the current financial results, had been audited by another firm of chartered accountants, which were the predecessor auditors. “Vide reports dated June 13, 2017, they have expressed an unmodified opinion,” Mehra Goel & Company said, without specifying what the opinion was.

Mehra Goel & Company said that figures for Q3FY18 were only “reviewed” by Deloitte, but were not subject to an audit by them.

Manpasand had to postpone its Q4 results because Deloitte had stepped down, putting the stock under significant pressure. In the last one month, Manpasand’s stock shed 67 per cent of its value, trading at Rs 143.25 per unit at the end of trade on Wednesday on the BSE. The firm posted a 36.42 per cent year-on-year rise in profit to Rs 427.4 million for the quarter ended March 31, 2018. Its net profit was Rs 313.3 million a year ago. Revenue from operations rose 44 per cent year-on-year to Rs 3.84 billion against Rs 2.67 billion in 2016-17. For the full year ended March 2018, Manpasand reported a year-on-year profit growth of nearly 38 per cent to Rs 999.9 million. Its net profit a year ago was Rs 726.3 million. Revenue from operations rose 35.21 per cent year-on-year to Rs 9.48 billion versus Rs 7.01 billion in 2016-17.

Manpasand’s board on Wednesday also recommended a final dividend of 5 per cent on the face value of Rs 10 per equity share, for FY18.