Price Waterhouse quits as GVK Infrastructure's auditor citing lack of information

Hyderabad (Telangana) [India], Aug 15 : Price Waterhouse Chartered Accountants, the auditor of GVK Infrastructure, has resigned citing lack of information provided by the company to prepare financial statement for the financial year 2019-20.
The controversial infrastructure major has been under probe of several investigation agencies. Last month, the Central Bureau of Investigation booked GVK promoter Venkata Krishna Reddy Gunupati and Chairman G V Sanjay Reddy among others for allegedly siphoning off funds worth Rs 705 crore from the Mumbai International Airport Ltd (MIAL).
The Enforcement Directorate later conducted searches at the homes of promoters and offices of GVK Group in Mumbai and Hyderabad.
In a communication to the audit committee of the company, Price Waterhouse partner NK Varadarajan said the auditor was appointed for five years in September 2017. It said that despite several communications to GVK, the group did not provide them with necessary information.
"You are aware of various communications with regard to audit of financial statements for the year ended March which is in progress and various matters in relation to which we are awaiting information and explanations (including reporting from component auditors) to be in a position to conclude our audit," said Varadarajan.
"Details of information and explanations sought are still not provided and are reiterated in our letter dated August 12 to the management and copied to the audit committee," the auditor said.
"In view of various matters described in our communications, including the recent events in relation to company's subsidiary MIAL, we have assessed the appropriateness of our continuance as statutory auditors of the company and accordingly wish to communicate our intention to resign as statutory auditors," it said.