The board of CG Power and Industrial Solutions has sacked the firm’s CFO V.R. Venkatesh over alleged “misconduct” and breach of trust. This comes after the company removed founder Gautam Thapar as chairman on Thursday.
In an announcement to the bourses late on Friday, the company said its board has “terminated the employment of V.R. Venkatesh as the chief financial officer of the company with immediate effect’’.
The company added that Venkatesh’s exit is because of the “grave nature of the misconduct and breach of trust on his part and having knowingly undertaken actions which were detrimental to the interests of the company and its stakeholders’’.
K.N. Neelkant, CEO & managing director, who was sent on leave on May 10 by the board to allow proper investigation into financial irregularities, continues in his role for now.
The company has declared its financial results for the March quarter of 2019 by taking into account the unstated liabilities. The results were reviewed by the audit committee and approved by the board.
“Certain unauthorised banking transactions in the nature of loans taken from lenders or a connected party aggregating to Rs 635 crore were not disclosed in the standalone financial results of prior years by setting them off against certain related and unrelated party balances,” the company’s auditors said in an audit note furnished with the restated statement.
Interest expenses of Rs 90.93 crore, which were serviced by the company in relation to these unauthorised loans were accounted for under different heads in the standalone statement of profit and loss and “were mispresented in the financial statements of prior periods”.
“The company also has loans, including interest receivables and advances recoverable from related and unrelated parties, as reinstated on March 31, 2019, aggregating to Rs 2,439.94 crore for which further interest income of Rs 337.61 crore was not recorded as on March 31, 2019,” it said.
While total income (before adjusting for the qualifications) for 2018-2019 stood at Rs 5631.30 crore and net loss was at Rs 1417.39 crore, CG Power said the adjusted figures cannot be determined.
