Delek replaces Auditors EY with Deloitte

Delek Group Ltd (TASE: DLEKG), controlled by Yitzhak Chuva, announced last week unexpectedly that it would replace its auditors EY Israel, with its accounting rival Deloitte. “The replacement of the company’s current auditors after a long period of more than 20 years is appropriate and reasonable, among other things, to ensure the adequacy of the company’s oversight and audit procedures,” Delek said. Related articles Delek announces record fourth-quarter earnings and huge losses in 2020. Delek’s recovery: share price increases by 200%, bonds increase by 525% Delek sells lands in Acre for 200 million shekels The move from EY to Deloitte comes after EY decided Last month, a “go” attachment again related to eligibility for Delek Group’s financial statement for 2020, which serves as a warning sign to investors and reflects doubts about the company’s ability to meet its short-term obligations. The ‘continuity’ qualification was first attached to Delek Group’s financial statement for 2019 and remained unchanged throughout all quarterly reports published in 2020. During 2020, Delek significantly reduced its debt through realization of assets and increased capital and debt. However, at the end of 2020, Delek remained in debt of more than 5 billion shekels and faces great challenges over the next two years, with the need to repay debts of 1.53 billion shekels in 2021, and 2.165 billion shekels in 2022. These debts convinced EY of the necessity. Maintaining ‘continuity’ qualifications. The auditors saw that the on-time debt repayment depends on the company’s ability to realize major assets and investments, and to substantially raise debt and capital. In the call to the shareholders’ meeting next month, she stressed that the decision to change the auditors came after a desire to update and make the audit process more effective, and not because of any problems in the work of EY. This is not the first time that Delek Group has changed a professional body recently. Last year, Delek Group halted its relationship with rating firm Midroog, after it cut its debt rating by 13 levels. EY will continue to act as auditor for the Delek Drilling LP for energy exploration and production in the Delek Group (TASE: DEDR.L). Posted by Globes, Israel business news – en.globes.co.il – on April 18, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021