Spandana Sphoorty Financial Ltd (SSFL) has delayed results for second quarter ended September 2021 (Q2Fy22) due to recent flux in management following resignation by managing director Padmaja Reddy and attrition in the information technology team.
Being a listed entity, the company is required to submit quarterly financial results for Q2FY22 to the stock exchange, within 45 days from the close of the quarter, i.e. before November 14, 2021. However, it was not in a position to submit the aforesaid results within the prescribed time period, SSFL said informed BSE. Its stock closed 1.9 per cent down at Rs 524.15 per share on BSE.
The company would like to furnish the reasons for delay in submitting financial results, said a troubled micro-finance institution (MFI). Given the recent flux in management, the board of the Company has acknowledged that it will not be able to complete its audit of the Q2Fy22 in time to declare the results by November 14, 2021.
It said, “We have recently undergone changes in management”. As disclosed earlier, our former managing director recently resigned (November 02, 2021). Immediately thereafter, the information technology team has also undergone attrition.
Hyderabad-based MFI has already appointed an interim management committee to take over operational control over the affairs of the Company and also finalized a successor to the former managing director who is expected to take charge shortly.
On Wednesday rating agency ICRA placed SSFL’s debentures and bank lines under watch with developing implications following sudden resignation by its chief executive and other senior level exits.
The frequent churn in the senior management team was a concern. The recent exits, including that of the MD & CEO, is expected to have some impact on the normal operations in the near term, ICRA said.