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Meanwhile, the company has posted a net profit of Rs 158.2 crore for the quarter ended March 31, 2015 as compared with Rs 85.3 crore for the quarter ended March 31, 2014. Total Income has decreased from Rs 569.6 crore for the quarter ended March 31, 2014 to Rs 490.1 crore for the quarter ended March 31, 2015.
The Sebi order last week linking Vellayan to trades by two individuals in shares of Sabero Organics Gujarat Ltd., a company that was acquired by Coromandel International Ltd. in May 2011, is based merely on suspicion and is a far-fetched tenuous conjecture, said Murugappa Group.
The only purported link sought to be made by Sebi between Vellayan and these transactions is that one A R Murugappan is a distant relative (son of a grand aunt) and had had a property transaction with Vellayan way before the Sabero transaction was even thought about.
"Sebi has jumped to the conclusion that the trades could potentially be attributed to suspected communication of unpublished price sensitive information about the Sabero deal by A Vellayan to this distant relative," said the company.
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"The link drawn in this interim Order is not a conclusive finding. A Vellayan is resolute in defending the serious harm to reputation caused by this Order and will take appropriate action as legally advised".
Spokesperson said that the Vellayan will extend full cooperation to Sebi to complete investigations expeditiously, apart from seeking redress against the premature measures adopted.
"In keeping with family values and tradition, he has stepped aside from the Chairmanship of the Murugappa Group Corporate Board and of Coromandel International Ltd. and EID Parry India Ltd. until this matter is resolved," said the spokesperson earlier.
