CG Power shares crash by 20% after financial irregularities are found in forensic audit
Shares of Gautam Thapar backed CG Power and Industrial Solutions dipped by 20 per cent on Tuesday after an internal probe discovered financial irregularities. The scrip has hit a new 52-week low of Rs 14.75.
The board of directors appointed an independent legal firm to carry out a forensic audit of the company. The firm submitted the report stating irregularities were ‘purportedly carried out by identified company personnel – both current and past, including non-executive directors, certain key managerial personnel and other identified employees’. The board said appropriate legal actions will be taken.
The company in its regulatory filing while stating its fiscal results for 2018-19 said, “While working on one of its priority tasks of seeking refinancing of certain facilities and as part of conducting financial analysis in this regard, the operations committee (Ops Committee) was made aware of some unauthorised transactions by certain employees of the company.”
The company also said that the Managing Director KN Neelkant was away from day-to-day management services while the probe was being held and hence, the independent director of the company and member of operations committee Sudhir Mathur was re-designated as a whole-time Executive Director from May 10.