PwCA to name it quits as GVKPIL auditors, allege non-cooperation by co & administration

HYDERABAD: Price Waterhouse Chartered Accountants LLP (PwCA), the statutory auditors of beleaguered Hyderabad-based infrastructure participant GVK Power & Infrastructure Ltd (GVKPIL), have communicated their intention to resign as auditors citing the failure of the corporate and its administration to submit the requisite data to them for making ready the audit of the monetary statements for monetary yr 2019-20 regardless of repeated makes an attempt.
The proposed resignation of the statutory auditors comes even because the GVK group and its promoters are underneath the Central Bureau of Investigation (CBI) and Enforcement Directorate scanner within the Rs 705 crore Mumbai worldwide airport rip-off.
“In view of varied issues described in our communication, together with the current occasions in relation to firm’s subsidiary, Mumbai International Airport Limited (MIAL), we’ve got assessed the appropriateness of our continuance as statutory auditors of the corporate by way of Standard on Quality Control 1…and accordingly want to talk our intention to resign as statutory auditors of the corporate,” mentioned the PwCA letter dated August 13, 2020.
The proposed letter, which was written by PwCA associate NK Varadarajan to the audit committee of GVKPIL, additionally states that PWC was acutely aware of its obligations the SEBI round issued on October 18, 2019 and would make greatest efforts to conclude the corporate’s monetary outcomes topic to the cooperation of the corporate and its administration.
“Our resignation as statutory auditors of the corporate shall accordingly be efficient instantly on discharge of our obligations underneath the Companies Act, 2013,” mentioned the proposed resignation letter by PwCA, which has been submitted by GVKPIL to the Bombay Stock Exchange as a part of a regulatory submitting.
In the letter, PwCA has mentioned that it gave repeated reminders to the corporate and its administration from July 6 to August 12, 2020, with regard to the continuing audit of the corporate’s FY2019-20 monetary outcomes however remains to be awaiting data and explanations that may allow it to conclude its audit.
In the primary week of July this yr, CBI registered a case towards GVK Group chairman GVK Reddy, his son GV Sanjay Reddy, who’s the vice-chairman of GVK Group and managing director of MIAL, and different group corporations for allegedly siphoning off round Rs 705 crore from MIAL.
Less than per week after that, ED booked a cash laundering case towards GVK Reddy and his son GV Sanjay Reddy in the identical matter.

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