Price Waterhouse and Company Chartered Accountants LLP (PwC) has resigned from auditing services at Eveready Industries on grounds that it has been unable to obtain sufficient audit evidence of inter-company deposits and its recovery.
Singhi and Company Chartered Accountants has been appointed as auditors for the company.
"Price Waterhouse & Co has expressed its inability to continue as the auditors of the company," Eveready said in a release over the weekend.
While approving the company's annual financial report, PwC mentioned that the holding company had given advances to the tune of Rs 62 crore to a company to get the leasehold rights of a property. The deal had to be executed by the end of the last financial year. Further, Eveready had the right to claim refund and cancel the agreement if it failed.
"However, neither the deed has been executed nor the refund claimed," the auditor stated in its report.
Reports said that there was difference of opinion between PwC and Eveready on the recoverability of inter-corporate deposits given to group companies and corporate guarantees given on behalf of group entities amounting to Rs 512.26 crore.
Singhi & Co is a leading audit firm that has been involved with several large listed companies over their 80 years of experience in the profession. With a pan-lndia presence in seven cities, the firm has a team of 25 partners and over 500 people. It is the Indian member of Moore Stephens International headquartered out of London.
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