In December 2015, Deloitte resigned as auditor of Alok Industries. It is informed to stock exchanges that this unusual decision is taken as many companies change auditor in the middle of the year. This issue went largely unnoticed as analysts have stopped tracking the debit ridden textile company. The subsidiaries which borrowed close to Rs 20,000 crore from Indian Banks.

“Considering the increase in number, size and complexity of transactions, Deloitte required an interim hike in their remuneration which was significant and not possible for the company.” Jiwrajka said responding to ET’s email query.

An employee of the PR firm hired by Deloitte said, “As per our consistent policy, Deloitte does not comment on client confidential matters.” Surendra Jiwrajka, an executive director at Alok, said, “The reason for Deloitte’s resignation was purely commercial in nature.

Jiwrajka said, “The banks have never asked us for even a clarification thus far in this regard. There has never been any such mention in our accounts till date either. Besides, no auditor would take up the assignment if there were to be the existence of such a lacuna in the balance-sheet and even banks would not have supported us all the way they have so far.”

No objection certificate is given by Deloitte under the rules of Institute of Chartered Accountants of India. This is given to Shah Gupta & Co the chartered accountants firm who replaced Deloitte from the list of auditors of Alok.