Bulletin: UPL Corp.'s Change In Auditor Does Not Signal Increased Governance Risk

SINGAPORE (S&P Global Ratings) Oct. 20, 2020--S&P Global Ratings today said that a change of auditor at UPL Corp. Ltd. (UPL; BBB-/Negative/--) is unlikely to affect our view of the India-based agricultural solutions company's corporate governance, liquidity, or standing in the market. On Oct. 16, 2020, UPL disclosed that KPMG Mauritius has resigned as the statutory auditor, and has been replaced by Crowe ATA Mauritius. According to UPL, the main reason for the change was that KPMG Mauritius was facing operational challenges, which resulted in significant delays in it meeting the timelines for completion of audits. UPL attributed this to the lack of strength on the part of the audit team to conduct the audit of a large global corporation.

...October 20, 2020 SINGAPORE (S&P Global Ratings) Oct. 20, 2020--S&P Global Ratings today said that a change of auditor at UPL Corp. Ltd. (UPL; ###-/Negative/--) is unlikely to affect our view of the India-based agricultural solutions company's corporate governance, liquidity, or standing in the market. On Oct. 16, 2020, UPL disclosed that KPMG Mauritius has resigned as the statutory auditor, and has been replaced by Crowe ATA Mauritius. According to UPL, the main reason for the change was that KPMG Mauritius was facing operational challenges, which resulted in significant delays in it meeting the timelines for completion of audits. UPL attributed this to the lack of strength on the part of the audit team to conduct the audit of a large global corporation. Such issues persisted even before the COVID-19 pandemic, and has been an impediment for UPL's parent, UPL Ltd., to consolidate the wider group's financial statement on a timely basis. Despite the change, UPL is on track to announce its...

Bulletin