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Rediff News  All News  » Business » Birla Global to remove Lodha firm as auditor

Birla Global to remove Lodha firm as auditor

December 22, 2004 09:56 IST

Following the outbreak of the Birla-Lodha controversy over the succession of M P Birla group assets, Birla group companies are removing Lodha & Company from the post of auditors.

But Aditya Birla group finance outfit, Birla Global Finance Ltd has gone a step further.

Birla vs Lodha: War over a will

It is not only appointing a new auditor but has raised questions about the integrity of Lodha & Company in the resolution of the extra ordinary general meeting to be held on December 24.

The company has convened the EGM to appoint a new auditor Suresh Surana & Associates in place of Lodha & Company and this is the sole agenda of the meeting.

An official of the Birla group informed that Birla Global is the only remaining Birla group outfit from where Lodha & Company as auditor is yet to be removed officially. According to him, Lodha & Company was the auditor of 15 outfits, across all Birla groups. "Birla Global is the last company where we are in the process to remove them," said the official.

The resolution says: "R S Lodha/H V Lodha have claimed themselves as successor so far as the management control of the M P Birla group of companies under the disputed will of Priyamvada Birla.

In view of this pending dispute between them and members of Birla family (our company being a part of Aditya Birla group), there is every likelihood that this pending litigation might influence their independence of judgment in carrying out their duties as the auditors of the company and may affect their objectivity and impartiality."

The resolution also stated that the audit committee and also the board felt that Lodha & Company should not continue as auditors. However, it has praised Lodha & Co by saying that they have been good enough to tender their resignation on October 30. Birla Global Board earlier asked Lodha & Co to reconsider their continuance as auditors of the company.
BS Bureau in Kolkata