UPL dips 9% post resignation of auditors of material arm based in Mauritius

The company informed that M/s. KPMG, Mauritius has resigned as the auditor of UPL Corporation Limited w.e.f. 8th October, 2020, it said.

Shares of UPL slipped 9 per cent to Rs 458.85 on the BSE in the early morning trade on Friday after KPMG resigned as the auditor with effect from October 8 for the company’s material arm in Mauritius - UPL Corporation, in order to re-organise the Audit Process to improve productivity, at the request of the company.

“This is to inform you that the company has received the attached communication dated 14th October, 2020 from UPL Corporation Limited, Mauritius, a material subsidiary of the Company,” UPL said in an exchange filing on Thursday after market hours.

As per the said communication, M/s. KPMG, Mauritius has resigned as the auditor of UPL Corporation Limited w.e.f. 8th October, 2020, it said.

“In order to re-organise the Audit Process to improve Productivity, at the request of the Company, KPMG Mauritius has resigned as Statutory Auditors of UPL Corporation, Mauritius. M/s. BSR & Co. LLP, Chartered Accountants, continues to carry out the audit of Group Consolidated Financials of UPL, India which includes UPL Corporation Ltd, Mauritius, and its subsidiaries,” UPL said in a clarification statement on Friday. BSR & Co. LLP is a sub-licensee of KPMG in India.

BSR & Co. LLP, Chartered Accountants, who were appointed as Statutory Auditors of the Company for the period of five years at the AGM held on July 8, 2017, continue to remain the Statutory Auditors of the Company, including for the consolidated financial statements of UPL, India, it said.

At 09:36 am, UPL was trading 7 per cent lower at Rs 473 on the BSE, as compared to a 0.77 per cent rise in the S&P BSE Sensex. A combined 5.5 million equity shares had changed hands on the counter on the NSE and BSE.