Price Waterhouse quits as GVK Infra auditor, cites lack of information

"Details of information and explanations sought and still not provided is reiterated in our letter dated August 12, 2020 to the management," Price Waterhouse said in its letter

Price Waterhouse, the auditor of GVK Infrastructure, resigned on Thursday citing lack of information provided by the company to prepare financial statement for the financial year ended on March.

In a communication to the audit committee of the company, PW Auditor N K Varadarajan said it was appointed as auditor of the company for five years started in September 2017. 

The auditor alleged that despite several communications to GVK, the group did not provide them with necessary information.

“You are aware of various communications with regard to the audit of the financial statements for the year ended March 2020, which is in progress and various matters in relation to which we are awaiting information and explanations (including reporting from component auditors) to be in a position to conclude our audit. Details of information and explanations sought are still not provided and are reiterated in our letter dated August 12, 2020, to the management and copied to the audit committee,” the auditor said. The communication was sent to the stock exchanges on Friday.

“In view of various matters described in our communications, including the recent events in relation to company’s subsidiary, Mumbai International Airport Limited (MIAL), we have assessed the appropriateness of our continuance as statutory auditors of the company and accordingly wish to communicate our intention to resign as statutory auditors,” the auditor said.

“We are conscious of our obligations under Sebi circular dated October 18, 2019. We would accordingly make best efforts subject to necessary cooperation from the company and your assistance and intervention so that necessary information and explanations as sought in our various communications are made available to us. The company is requested to take necessary steps in order to comply with the applicable various Sebi circulars and other regulatory requirements,” the auditor said and added that its resignation would be effective immediately on discharge of our obligations under the Companies Act, 2013.

While the auditor did not make any reference to what information it had on MIAL, in July this year, the Central Bureau of Investigation booked GVK promoter Venkata Krishna Reddy Gunupati, the chairman of the group and G V Sanjay Reddy, managing director of Mumbai International Airport and among others for allegedly siphoning off funds worth Rs 705 crore from the airport. The enforcement directorate is also conducting a separate probe on MIAL’s finances.