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Manapasand Beverages stock falls 5% after auditor quits

FE Bureau
The company is yet to file its results for the fourth quarter ended March. (Website image)

Share prices of fruit juice manufacturer Manpasand Beverages dropped on Wednesday after another auditor, Mehra Goel and Co Chartered Accountants, resigned amid the ongoing investigation into the GST fraud case. The stock ended the session 4.90% lower at Rs 38.85 on the BSE.

In May 2018, auditor Deloitte Haskins &Sells resigned citing the management’s inability to share crucial data. Deloitte Haskins & Sells India had complained that significant information requested at various stages for the purpose of audit of financial results was not shared.

In an exchange filing, the company said it received a resignation letter from Mehra Goel and Co Chartered Accountants on July 8. The auditor has stated its inability to continue as statutory auditors owing to action and investigation initiated by GST authorities and resignation of directors and company secretary of Manpasand Beverages. The company is yet to file its results for the fourth quarter ended March.

On May 24, Vishal Sood, non-executive director, had tendered resignation due to allegations of fraud by GST authorities. Multi-locational searches were conducted on various premises of Manpasand Beverages on May 23. The searches resulted into an unveiling of a huge racket of creating fake units for availing fraudulent credit and committing tax evasion of Rs 40 crore and involving turnover of Rs 300 crore approximately. Since May 24, share price of the company has been eroded by 65%, from Rs 110 to Rs 38.8. In a BSE filing, the company said commissioner of Central GST and Customs carried out search and seizures at various premises of the company on May 23.