The stock closed at Rs 438 a share, down 10.94 per cent, with a
market capitalisation of Rs 33,499 crore.
Shares of chemical
firm UPL
Ltd closed nearly 11 per cent down on Thursday on reports that a whistle-blower
had alleged corporate governance lapses in the company and that its promoters
had siphoned off funds. The whistle-blower also alleged that UPL entered into
rent deals with a shell company owned by its employees and paid crores of
rupees in rent for properties held by the latter, which was earlier owned by
the promoter family.
The company, owned
by the Shroff family, however, said this was an old matter and was reported to
the audit committee in 2017. After an independent probe, the matter was closed,
it said.
The stock closed
at Rs 438 a share, down 10.94 per cent, with a market capitalisation of Rs
33,499 crore.
In a statement to
the stock exchanges, UPL denied that the whistle-blower was a member of the
board. “An identical whistle-blower complaint was received by the audit
committee of UPL on June 2, 2017,” the statement said.
“The whistle-blower
committee, which comprised only independent directors, was constituted by
the audit committee to investigate the allegations and all the contents of the
complaint were fully disclosed,” the statement said.
“It undertook a
detailed review, including each related party transaction (RPT), with the help
of an independent law firm, and had concluded two and half years back that
those transactions were at arm’s length and in compliance with applicable laws.
Thereafter, the complainant was duly informed about the findings of the audit
committee and the matter was closed,” the company said.
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