Hindustan Unilever Ltd. has announced that its cost auditor has been disqualified from continuing amid a conflict of interest.
The decision was made after it was discovered that Rasesh Vipin Chokshi, who is a partner at the firm R.A. & Co., was holding shares in the company.
According to the Companies Act, 2013, a cost auditor cannot hold any shares in the company for which they're auditing the costs.
Following this violation, M/S R.A. & Co. has been asked to vacate office immediately, just six months after being appointed as cost auditors for the ongoing financial year, the consumer goods maker said in an exchange filing on Thursday.
The vacancy will now be filled by the board of directors within the statutory timelines, it said.
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