Farouk Irani, managing director, First Leasing Company of India Ltd has resigned from the company. In an annoucement to BSE today, the company said that the board has received a personal letter from Irani indicating that he would not be able to work with the company any more in view of recent developments and as such he wishes to resign.
The company was incorporated by A C Muthiah, as the first leasing company of the country on September 10, 1973 with Farouk Irani, who is the pioneer of corporate leasing services in India, as managing director.
"After perusing the letter, the board was of the view that the managing director should send a formal letter of resignation addressed to the Board of Director of the Company's for Board's consideration and to take appropriate action".
The board of directors appointed G J Muralidharan, the present Vice President - Legal and Recover as its executive director to take charge of the day to day operations of the company, said in the announcement.
It may be note, earlier this month the financial statements of First Leasing Company of India Ltd might undergo amendments as the statutory auditor of the company informed it that some of the audit reports and certificates issued by them should no longer to be relied upon. It may be noted that the Reserve Bank of India has earlier directed the AC Muthiah-led company not to transact any business or incur any further liabilities in the light of the findings of the inspection of the books of accounts and other records as on March 31, 2013.
According to a regulatory filing by the Chennai-based finance company, it has received a letter from Sarathy & Balu, chartered accountants, statutory auditor of the company, stating that some of the audit reports and certificates issued by them should no longer be relied upon, under the Standard on Auditing norms.
The reports mentioned by the auditor includes financial statement for the year ended March 31, 2013 and their report dated May 27, 2013, Limited Review Report for the three quarters of last fiscal, from June 30, 2012, to December 31, 2013 and for the first quarter of current fiscal ended June 30, 2013.
"On the basis of the above, the financial statements for the year ended March 31, 2013 may undergo amendments, together with revised Auditors' Report which will be approved and published, once the amendments to the Accounts are finalised," said the company in its filing with the Bombay Stock Exchange.
It may be noted that on September 13, RBI has issued a direction restricting the company from declaring or distributing dividend and from creating any further liabilities. The company cannot sell, transfer, create charge or mortgage or deal in any manner with its property or assets without RBI’s prior written permission.