Auditor resignation in UPL - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

"On Thursday, UPL informed the exchanges that auditor M/s. KPMG, Mauritius has resigned as the auditor of UPL Corporation Limited, Mauritius, w.e.f. 8th October, 2020. UPL Corporation Limited, Mauritius is a material subsidiary of the Company. M/s. BSR & Co. LLP, Chartered Accountants, was appointed as Statutory Auditors of the Company for the period of five years at the AGM held on 8 th July 2017, continues to remain the Statutory Auditors of the Company, including for the Consolidated Financial Statements of UPL Limited, India. M/s. BSR & Co. LLP is a sub-licensee of KPMG in India. As per Company, in order to reorganize the Audit Process to improve Productivity, at the request of them, KPMG Mauritius has resigned as Statutory Auditors of UPL Corporation Limited, Mauritius. In the resignation letter, the auditor hasn't mentioned any adverse comment, they have said that no circumstances connected with their resignation which they consider should be brought to the notice of the members. We believe that this is sentimentally negative for the stock as the resignation of an auditor raises questions in the minds of the investors."

Shares of UPL Limited was last trading in BSE at Rs.506.45 as compared to the previous close of Rs. 511.15. The total number of shares traded during the day was 173983 in over 6349 trades.

The stock hit an intraday high of Rs. 519.95 and intraday low of 503. The net turnover during the day was Rs. 89546812.

Source : Equity Bulls

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