The management for CG Power and Industrial Solutions (CG Power) considers any further association with its promoters as prejudicial to the company, the chairman said in a letter to shareholders. The company will hold its annual general meeting (AGM) on December 14.
In a letter to shareholders as part of the company’s AGM notice, Ashish Kumar Guha, chairman, CG Power, said, “Your company considers any further association with Gautam Thapar and the promoters as prejudicial to the interests of your company and its stakeholders.”
Guha made the above observation related to several irregular transactions that the company revealed in a findings report in August this year.
The letter added corrective action will follow in the future as necessary. “Your company has been cooperating with all agencies to expedite closure on these issues since August 2019,” the letter said.
Sudhir Mathur, wholetime executive director for the company, added, “Another task is to cleanse CG of wrongdoers. This began by the majority of the board of directors removing Thapar as the chairman of the company with effect from August 29, 2019. It was followed on August 30, 2019, by removing, with cause, V R Venkatesh, the chief financial officer of CG, who has purportedly been actively involved in siphoning out CG’s funds.” Mathur expects as the forensic investigation unfolds, others could follow.
The annual report stated Thapar ceased to be a director on the company’s board with effect from October 9, 2019, following an October 7 letter that the board received from Thapar stating his term as director ended on September 30, 2019.
Commenting on the company’s business performance, Guha added, “The business performance of your company for 2018-19 has been affected due to severe crunch in the working capital.”
Guha further informed shareholders’ capital restructuring for the business and the company will be critical. “…As the working capital gap is wide and while the businesses are intrinsically strong, this starvation has led to lower revenue.”