India’s first profitable e-commerce company Infibeam Avenues terminated services of chartered accountancy firm S.R.B.C & Co. LLP as one of the joint statutory auditors on grounds of alleged sharing of unpublished price-sensitive information.
SRBC & Co LLP, in a statement issued later in the day, however, refuted charges and said it is open to regulatory inspection and will respond to the regulators, as required.
In a regulatory filing, Infibeam Avenues said that the board Sunday recommended, subject to the approval of regulatory authorities and shareholders, “to terminate company’s joint statutory auditor S.R.B.C & CO. LLP (Auditor), on the grounds of sharing company’s unpublished price-sensitive information with personal e-mail accounts of their team and third-party on multiple occasions leading to breach of trust and loss of faith”.
The company, on receipt of anonymous third-party information shared its preliminary findings to the Auditor, which has been verified and confirmed by the Auditor pursuant to an internal investigation, Infibeam said.
“The Board was also not convinced on the Auditor explanations, processes and conduct leading to unauthorized sharing of company’s UPSI (unpublished price-sensitive information),” it added.
S.R.B.C & Co LLP in a statement said, “We strongly deny the allegations against us. We have conducted a comprehensive investigation and stand by our findings. We are confident of our position and are open to a third party/regulatory inspection and will respond to the regulators, as required.”
An extraordinary general meeting of Infibeam Avenues has been convened on May 30, 2019, for seeking shareholders approval for terminating S.R.B.C & Co LLP as an auditor of the company.
Infibeam, further, said that Shah & Taparia shall continue to be the statutory auditor of the company.