NEW DELHI: Shares of Atlanta hit 20 per cent lower circuit limit on Thursday after Price Waterhouse (PW), a network firm of PwC India quit as auditor to the construction and infrastructure company.
The firm apparently refused to share details of an ongoing income tax investigation and the resignation of an independent director.
The stock fell 20 per cent to Rs 51.10 on BSE.The income tax department is investigating sources of some of the companys income and 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.We would like to bring to your attention that significant information including certain significant observations made by the tax authorities requested by us from the company at various point in time as part of the audit were not provided, PW said in a letter to Atlanta on Monday.This is the second case of big auditor resigning from a company due to insufficient information about financial accounts.
Deloitte Haskins Sells quit as auditor to Manpasand Beverages on Sunday.