Vakrangee Ltd shares hit the lower circuit filter for 26 straight days, after reports that the auditors resigned, as they were not given adequate information to perform their duties as auditors.
Manpasand Beverages, the makers of "Mango Sip" and "Fruits Up" has lost 40 per cent in two days, and is trading at Rs 275.40, with only sellers in the stock.
This is after Deloitte, Haskins and Sells resigned as auditors, after significant information was not given to that them to perform their functions.
The shares of the company have now fallen from a whopping Rs 512 seen in Sept last year to levels of Rs 275.40. One is not sure, how many more lower circuit filters the stock would hit. Resignation of auditors is taken very seriously by investors, including small and institutional investors.
A classic example is that of Vakrangee, which has failed to come out of the lower circuit for 26 straight days, ever since the auditors resigned.
Manpasand Beverages makes the famous "Mango Sip" beverage. In fact, the company has very renowned set of investors including Saif Partners India Pvt Ltd. Apart from this, there are also many mutual fund investors that have invested in the company. Among these include ICICI Prudential Midcap Fund and SBI Magnum Midcap Fund.
"This is just a minor hiccup and doesn't represent any long term business impact," the company said in a release to the exchanges. However, it has yet to clarify on the kind of information that the auditors sought and why the same was not provided.
Deloitte, Haskins and Sells has further stated that they will be unable to complete the statutory audit of the financial statements of the company for the year ended March 31, 2018 by May 30, 2018.
The results were slated to be announced later this month. It is unlikely that this will happen any time soon. Where the stock would end is difficult to say, but, looks like an abyss at the moment.