Atlanta tanks on resignation of statutory auditors

Construction company Atlanta Limited said that Price Waterhouse Chartered Accountants LLP, the statutory auditors of the company have resigned from their position for FY 2017-18 with immediate effect. The company has informed this through a regulatory filing made with the stock exchanges.

As per the auditors, the company had not informed them about the receipt of orders u/s 147 of the Income Tax Act regarding assessment for the past 6 assessment years and other such tax related investigation matters. Also, as per the auditors, the resignation of an Independent Director, Shankar Vishwanath was not brought to their notice. However, the company has stated that it has accepted the resignation letter in which the clarifications sought by the company are mentioned. 

The company's board meeting was supposed to be held on May 29, 2018 for approving the audited results for the quarter ending March 31, 2018. However, due to the resignation of the independent director and for want of quorum, the meeting is postponed.

Atlanta Limited is a construction company engaged in the business of contracting activities like construction and development of infrastructure. It is a small-cap company having market capitalisation of Rs. 416 crores.

On Thursday, the stock had closed at Rs 63.85 per share. On Friday, it opened gap down at Rs. 51.10, thereby hitting the lower circuit, i.e., down by 20 per cent. It made intra-day high of Rs 55.45.