Shares of Gujarat-based fruit juice maker Manpasand Beverages crashed 20% in the early deals on Monday after the company cancelled its board meeting scheduled on 30 May 2018 on Deloitte’s resignation as statutory auditor of the firm. In lieu of Deloitte, Manpasand Beverages has appointed Mehra Goel & Company as the statutory auditor of the company. Shares of Manpasand Beverages slumped 20% to 52-week low levels and were locked in the lower circuit since Monday morning.
“Subsequent to resignation of M/s. Deloitte Haskins & Sells, Chartered Accountants, Vadodara, (FRN:- 117364W) the statutory auditors of the company with effect from May 26, 2018, the board of directors of the company upon the recommendation of the audit committee, have appointed M/s. Mehra Goel & Co., Chartered Accountants, New Delhi, (FRN:- 000517N) as statutory auditor of the company with effect from 27th May 2018 to fill the casual vacancy in the office of statutory auditors, who shall hold office as such till the conclusion of the ensuring annual general meeting, subject to the approval of the members of the company,” Manpasand Beverages said in an exchange filing.
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“Due to sudden resignation of existing auditors, the business to be transacted at scheduled board meeting as intimated to your office on 23 May 2018 has been cancelled and further notice for the same will be sent you in due course of time,” Manpasand Beverages added.
Following the blow, Manpasand Beverages share price tumbled 20% to a 52-week low of Rs 344.8 on BSE. At the trading counters, only 76,723 equity shares exchanged hands on both NSE and BSE up until 11:10 am. With a sharp dip in the share prices, Manpasand Beverages lost about Rs 987 crore in the market capitalisation. At the current market price, Manpasand Beverages commands a market capitalisation of Rs 3,946.66 crore as against Rs 4,933.33 as on Friday.