Shares of Vakrangee hit an upper circuit of 5 per cent at Rs 37.90 on the BSE in early trade on Thursday after an inspection ordered by the Ministry of Corporate Affairs (MCA) into the accounts and operations of the company found no irregularity in matters pertaining to the resignation of its auditor, abnormal trading in the company’s stock, among other issues, the company said in its BSE filing.
However, during the inspection there have been few observations in preliminary findings such as amount planned for CSR activities remained unspent, funds from franchisee to be considered as deposits or not as per section 76, process of disposal of computers including computer peripherals during the financial year 2016-17 (FY17) and certain disclosures requirement with respect to financials as per schedule III. CLICK HERE TO READ THE RELEASE
Vakrangee's stock took a severe hit in 2018 ending the year at Rs 33.35, falling 92 per cent during the year from Rs 421. On April 28, 2018, Vakrangee had informed stock exchanges that its auditor, Price Waterhouse (PwC), had resigned. The filings had offered no explanation for the decision even though it came just days before the annual results were to be finalised. Later various media reports had suggested that the auditor resignation was due to the absence of adequate and relevant information and explanations regarding the company’s "Election Books, bullion and jewellery businesses". The stock has fallen nearly 83 per cent so far in FY19.