Kaveri Seed: Sebi orders audit

The Securities and Exchange Board of India (Sebi) has asked for a forensic audit of Kaveri Seed Company, the Secunderabad-based firm said.

Kaveri Seed informed the stock exchanges that it had received a mail from Sarath & Associates, a Hyderabad-based chartered accountancy firm, that it had been appointed by Sebi to conduct a forensic audit of the seed company. The accounting firm also requested the company to provide all records and information. Kaveri Seed added it had not received any communication from Sebi.

The company said it would cooperate and arrange all the required data for the audit firm. It added that it had confidence in its business, financial systems, and processes, including internal and statutory audits. On Monday morning, the stock hit a 52-week low at Rs 325 as details of the audit letter surfaced.

The company then issued a clarification to the exchanges that it had received the mail from Sarath & Associates on Thursday, and the Sebi letter to Sarath & Associates was dated December 15. The stock ended 6.7 per cent higher over Friday's close at Rs 368.6 on the BSE.

The audit firm was not available for comment. An e-mail to the regulator went unanswered.