In a surprising turn of events, Zomato announced on Sunday that the auditor of its subsidiaries, Zomato Hyperpure and Blink Commerce, has resigned with immediate effect. This development has opened the door for Deloitte Haskins & Sells to step in as the new auditor, with the aim of streamlining the audit process.
Batliboi & Associates, the previous auditor, had been appointed as the statutory auditors of the two wholly-owned subsidiaries for a five-year term starting 1 April 2023. However, they tendered their resignation effective 12 May 2024, as disclosed by Zomato in a regulatory filing.
The resignation comes after discussions and correspondence, wherein Batliboi & Associates cited Zomato management's desire to align the statutory auditor of the subsidiaries with that of the holding company. This move is intended to prevent duplication and enhance efficiency in the audit process at the group level, as stated by Batliboi & Associates.
Zomato clarified in the regulatory filing that the purpose of the resignation is to facilitate the appointment of Deloitte Haskins & Sells LLP, the current statutory auditor of the company, as the statutory auditor of Zomato Hyperpure (ZHPL) and Blink Commerce (BCPL) as well, in order to streamline the audit procedures.
The timing of this development is crucial, as Zomato's board is scheduled to convene on Monday to deliberate and endorse the results for the fourth quarter and the financial year ended March 2024.
This sudden change in auditors underscores the intricacies of corporate governance and regulatory compliance in the dynamic landscape of the technology-driven food industry. It also highlights the significance of audit efficiency and alignment across subsidiaries within conglomerates like Zomato.
