 "Ricoh India sends top management on leave")
Ricoh India sent its top management, including its chief executive and managing director Manoj Kumar, on leave on Friday after the BSE accused it of non-compliance. The company, which is in the business of printing and imaging solutions, failed to submit its limited review reports to the regulator for two consecutive quarters - September and December 2015.
Other than Kumar, chief financial officer Arvind Singhal and senior vice-president and chief operating officer Anil Saini have also been asked to go on leave, the company informed the BSE.
Read more from our special coverage on "RICOH INDIA"
On March 28, the BSE grouped Ricoh along with four other companies under the 'Z' category. Scrips that are part of the 'Z' group are compulsorily settled on a trade-to-trade basis. If a company is shifted for settlement on trade-to-trade basis, selling or buying of their shares will result in giving / taking delivery of shares at the gross level and no intra-day netting off/squaring off is permitted.
Ricoh has appointed an independent agency comprising an independent law firm and accountants to assist the Audit Committee.
Ricoh India is a subsidiary of Japanese multinational imaging and electronics company Ricoh Company, which directly holds 46.04 per cent in the Indian firm. The parent company holds another 27.56 per cent of Ricoh India through NRG Group Ltd, taking it to 73.6 per cent. The remaining shares in Ricoh India are held by IDFC Premier Equity Fund, mutual funds and foreign portfolio investors, among others.
"Trading members are hereby informed that the below-mentioned scrips will be transferred to 'Z' group with effect from March 28, 2016 due to non-compliances for two consecutive quarters - that is, September 2015 and December 2015 - for Clause 41 of the erstwhile Listing Agreement," the BSE informed traders in a notice dated March 18.
Ricoh Company has been interested in taking full control of the Indian arm for quite some time now. In November 2013, the promoters of the company expressed interest to de-list the firm in India.
Ricoh Company and NRG Group Ltd informed the BSE that they want to "voluntary de-list the equity shares of the company from the BSE... by acquiring up to 10,497,791 equity share held by public shareholders".
Ricoh India posted Rs 33.90 crore net profit on a revenue of Rs 1,637.82 crore in 2014-15. Its stock has plummeted by 27.38 per cent to Rs 413 a share from Rs 568.75 since March 18, when it was put under 'Z' category.
