Yes Bank said it invoked the shares of Eveready Industries India following the default/breach of terms of credit facilities sanctioned by the bank to Mcleod Russel India, which is a group company of BM Khaitan Group.

Yes Bank released the statement to the exchanges post market closing hours on Thursday. Shares of Eveready Industries India ended the day’s trading session down 3.56%, at `96.25 on the Bombay Stock Exchange.

Eveready Industries India’s product portfolio comprises batteries, flashlights and lighting products etc, having a consolidated turnover of `1,541.86 crore in the fiscal year 2018-19 and `1,494.99 crore in fiscal 2017-18.

Eveready Industries recorded a 11.14% fall in its net profit for the fiscal year 2019 at `47.82 crore.

Recently, India Ratings and Research downgraded the company’s long term credit rating to “IND BBB” from “IND A+” and maintained it on rating watch ‘Negative’.

India Ratings said that the downgrade reflected the firm’s increased exposure to its group companies above the rating agency’s earlier knowledge as the company had guarantees and post-dated cheques amounting to `283.10 crore issued to the group companies as on March 31, 2019.

“India Ratings believes there is a high likelihood of these contingent liabilities materialising in this financial year and hence elevates concerns on the company’s liquidity position, credit metrics and refinancing risks,” it said.

Later on June 29, Eveready Industries stated that its auditor Price Waterhouse & Co has expressed its inability to continue as the company’s auditors. The firm then appointed Singhi and Co as its auditors.