Shares of Atlanta Hit 20 % Lower Circuit Limit
Today, it was observed that the shares of Atlanta hit 20 per cent lower circuit limit on Thursday. This was when, the Price Waterhouse quit as auditor to the construction and Infrastructure Company. Price Warehouse is a network firm of PwC India.
It seems that Price Warehouse has refused to share details of an ongoing income tax investigation and the resignation of an independent director. Due to this, the stock fell 20 per cent to Rs 51.10 on BSE.
It came into notice that the income tax department is investigating sources of some of the company’s income as well as expenditure and whether some transactions escaped tax scrutiny. The investigations have been going on for the past few years and an assessment order was passed by the tax department this year.
On Monday, PW wrote a letter to Atlanta. It mentioned that it would like to bring to its attention that significant information including certain significant observations made by the tax authorities requested by them from the company at various point in time as part of the audit were not provided.
This is for the second time, when a big auditor is resigning from a company due to insufficient information about financial accounts. On last Sunday, Deloitte Haskins & Sells quit as auditor to Manpasand Beverages.