The audit woes of the B. M. Khaitan Group companies continue with Deloitte Haskins & Sells LLP exiting two companies — Mcleod Russel India Ltd. (MRIL) and McNally Bharat Engineering Company Ltd.
About a month ago, PwC had exited group flagship Eveready Industries India Ltd. (EIIL). MRIL said this in a regulatory filing while also announcing the resignation of its chief financial officer K. K. Baheti, who has made way for Pradip Bhar, an employee of the group.
Stating its intent of not continuing with the audit functions of McNally Bharat, Deloitte said that the decision was linked to the adverse audit opinion on the financial state of the company and also considering the fact that the company did not meet with clients’ acceptance and continuance norms. Deloitte was one of the two joint auditors, the other being V Singhi & Associates, who will continue.
In the case of tea company MRIL, the reason for the change in auditors has been given as “resignation in view of the matters stated in the adverse audit change opinion on the financial statements of the company for the year ended March 31, 2019 and the matters of the Company reported to the Ministry of Corporate Affairs.”
‘Sharp adverse opinion’
Lodha & Co have been appointed as MRIL auditors. Deloitte had earlier given sharp adverse opinion about the company’s ability to continue as a going concern .
PwC had exited Eveready audit duties a month ago citing its concerns over issues of financial controls. Both MRIL and EIIL have also seen credit downgrades by the rating agencies.
