Investors backing off as auditors continue to resign from leading firms

In the past few weeks, a number of auditors have resigned from companies citing non-supply of crucial information by management. Deloitte, Haskins and Sells recently resigned as the auditor of Manpasand Beverages, while Price Waterhouse quit as the auditor of construction and infrastructure company Atlanta Limited. Price Waterhouse had, towards the end of April, also quit as the auditor of Vakrangee Limited. The market regulator, the Securities and Exchange Board of India (Sebi), has launched its own scrutiny of Manpasand and Vakrangee. Shares of these companies have tanked 29-64 per cent as investors, smelling a rat, have dumped these stocks.