Resignation of Auditor via Resignation letter dated 19th April,2025
Awaiting price reaction for this filing.
Manpasand Beverages has informed the exchanges that M/s Bagaria & Co LLP, Chartered Accountants, has stepped down as statutory auditor with effect from 19 April 2025, well before its term was due to end at the 13th Annual General Meeting. In its resignation letter, the auditor flagged 'various proceedings and litigations' faced by the company, 'long overdue audit fees,' and stated that its independence to continue the audit was impacted. The auditor had last signed the audit report for the financial year ending 31 March 2020 and had not issued any audit opinion for the subsequent years, meaning multiple years of financials have remained unaudited. The company will need to appoint a replacement auditor and also file Form ADT-3 with the Registrar of Companies.
This is a significant governance red flag for shareholders. An auditor quitting mid-term citing litigation, unpaid fees, and independence concerns typically shakes investor confidence and can weigh on the stock. The gap in audited financial statements since FY2020 also raises serious questions about the reliability of the company's reported numbers.