In a letter to the National Stock Exchange of India, Eveready Industries India has reported that Price Waterhouse & Co Chartered Accountants LLP (PwC) has resigned as auditor and that the company had appointed Singhi & Co Chartered Accountants instead. PwC had ‘expressed its inability to continue as the auditors of the company’, according to Eveready.
In informing Eveready of its decision PwC referred to its disclaimer in the Eveready’s financial statements, which said PwC had ‘not been able to obtain sufficient appropriate audit evidence to providea basis for an audit opinion’.
Specifically PwC cited the reasons included in the ‘Basis of Disclaimer of Opinion’ on the financial statements and internal financial controls within the auditor’s report for the company’s year to 31 March 2019.
With regard to certain inter-corporate deposits, corporate guarantees and post-dated cheques, PwC had said in its auditor’s report on the financial statements: “We are unable to obtain sufficient appropriate audit evidence regarding the extent of the loss allowance/impairment to be recognised on these inter-corporate deposits and advances and of the potential liability to be recognised for the corporate guarantees/post-dated cheques, if any, and the consequential impact on the standalone financial statements…”
