Share price of Manpasand Beverages hit lower circuit of 5% on Wednesday after auditor Mehra Goel and Co. Chartered Accountants resigned amid the ongoing investigation in the GST fraud case. In May last year, another auditor Deloitte Haskins and Sells resigned citing the management's inability to share crucial data.
The share price of Manpasand Beverages hit lower circuit of Rs 38.85, at a loss of 4.89%. Currently, a total of 1,845 and 16,347 shares are currently changing hands on BSE and NSE, respectively.
Manpasand Beverages has formed a gap down chart pattern today. Manpasand Beverages stock has moved below its 30 day simple moving average today. The stock was already trading below 50, 150 and 200-day moving averages. The stock has fallen over 75% in last one year, above 65% in 6 months and over 2% in the last one month.
Mehra Goel &Co announced their resignation on Tuesday as the company's statutory auditor citing, "The firm has policies and procedures to evaluate client continuation on a regular basis".
The regulatory statement quoting the resignation letter read, " The firm has re-evaluated and had considered recent developments, including actions and investigations initiated by the GST authorities and resignation of directors and the company secretary of Manpasand Beverages".
Few months ago, top executives of the Vadodara-based company namely managing director of MBL Abhishek Singh, his brother and advisor of the company Harshvardhan Singh and chief financial officer Paresh Thakkar were arrested for an alleged Rs 40-crore fraud involving fake invoicing related to GST.
The CGST statement said the investigation unearthed a network of more than 30 fake units across the country that were used by Manpasand Beverages to commit fraud by availing illegal credit.
Interestingly, the manufacturer of fruit juices is yet to file its results for the March 2019 quarter. The stock currently quotes at Rs 328.85, at a loss of 4.90% on both exchanges.
Edited by Rupa Burman Roy