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CG Power & Industrial Solutions Ltd.

BSE: 500093 Sector: Engineering
NSE: CGPOWER ISIN Code: INE067A01029
BSE 00:00 | 03 Jul 10.04 0.47
(4.91%)
OPEN

10.04

HIGH

10.04

LOW

9.50

NSE 00:00 | 03 Jul 9.80 0.45
(4.81%)
OPEN

9.80

HIGH

9.80

LOW

9.40

OPEN 10.04
PREVIOUS CLOSE 9.57
VOLUME 11908037
52-Week high 27.30
52-Week low 4.69
P/E
Mkt Cap.(Rs cr) 629
Buy Price 10.04
Buy Qty 901262.00
Sell Price 10.03
Sell Qty 2360.00
OPEN 10.04
CLOSE 9.57
VOLUME 11908037
52-Week high 27.30
52-Week low 4.69
P/E
Mkt Cap.(Rs cr) 629
Buy Price 10.04
Buy Qty 901262.00
Sell Price 10.03
Sell Qty 2360.00

CG Power & Industrial Solutions Ltd. (CGPOWER) - Chairman Speech

Company chairman speech

Dear Shareholder

You are aware that your Company—CG Power and Industrial Solutions Limited. (CG)has been impacted by several irregular transactions which have been detrimental to theinterest of the Company.

On becoming aware of these transactions in the course of March / April 2019 theOperating Committee and the Risk and Audit Committee (RAC) of your Board of Directorsappointed a legal firm on 24 April 2019 to conduct a detailed investigation of thesetransactions. Based on the Phase 1 Report submitted by the legal firm in August 2019 itwas concluded that there were large and significant malfeasances. Details of this can befound in the Directors ‘Report the Auditor's Reports and the notes to thestand-alone and consolidated financial statements.

The Board acted swiftly once it received the Phase 1 Report and took major steps toprotect the interests of your Company including initiating significant changes incorporate governance.

Given the above your Company considers any further association with Mr Gautam Thaparand the promoters as prejudicial to the interests of your Company and its stakeholders.Corrective actions will follow in the future as necessary.

Your Company has been cooperating with all agencies to expedite closure on these issuessince August 2019. Additionally the law firm is carrying out a detailed forensic toidentify individuals responsible for this as well as to ensure all such transactions havebeen identified as well as represented in the financial statements appropriately. On thebasis of the final report we will take the necessary course of law as advised.

The business performance of your Company for FY2019 has been affected due to a severecrunch in the working capital. The Company has a robust order book and continues to workclosely with its customers suppliers lenders and other stakeholders.

Capital restructuring of the business and the Company is critical as the workingcapital gap is wide and while the businesses are intrinsically strong this starvation hasled to a lower revenue. The Company's management and its Board are attempting to mitigatethe liquidity issues to the extent possible and assessing various options for raising therequired capital to enable optimum business performance in the future.

The industry is evolving fast in the technology space and your Company has thetechnical knowhow and ability to compete in this fast changing environment.

The Board of Directors are focused on ensuring that both the corporate governance andrisk controls of your Company are robust going forward. I would like to thank all thestakeholders including customers vendors employees lenders and you our shareholderfor reposing confidence in the Company at this critical juncture.

Let us pray hope and work together for a better tomorrow.

Yours sincerely

Ashish Kumar Guha

CHAIRMAN