Infibeam Avenues gets RoC nod to remove auditor on grounds of 'strained relations'
Infibeam's move assumes significance as it comes just ahead of the e-commerce company’s annual general meeting scheduled for July 30.
July 25, 2019 / 08:26 PM IST
The Registrar of Companies (RoC) has allowed Infibeam Avenues to remove EY-affiliate SR Batliboi & Co (SRBC) as auditors, citing ‘strained relations’ between them.
The move assumes significance as it comes just ahead of the e-commerce company’s annual general meeting scheduled for July 30.
Earlier, Infibeam had alleged that SRBC shared an unpublished price sensitive information pertaining to its FY18 financial result in an unauthorised manner on multiple occasions in 2017.
The auditor has denied the above allegations. “Based on our detailed internal investigation, we have found no wrongdoing. The inadvertent action was without any malafide intention,” it said, adding that the report’s findings were submitted to the company.
Moneycontrol has seen the RoC order.
“The auditor has alleged in its letter dated May 20 that they have issued a qualified limited review report for the quarter ending June, September and December 2018, which has been made as ground for removal by Infibeam. The auditor has denied these allegations,” the RoC order stated.
It has recommended that Infibeam’s shareholders accept the request to remove the auditor to maintain a healthy corporate atmosphere. SR Batliboi & Co declined to comment on this development.
Based on the RoC order, Infibeam is now seeking shareholder approval to appoint a new auditor in place of SRBC through a special resolution at its upcoming AGM.
Current ICAI (Institute of Chartered Accountants of India) norms stipulate that if auditors resign, they must make their reasons known to the regulator. Companies, however, can terminate auditors' services without explanation.