Shares of CG Power and Industrial Solutions Ltd plummeted nearly 20 per cent on Tuesday after its Risk and Audit Committee raised red flags on five counts which were prejudicial to the company.
The committee found understated liabilities, related party transactions, unauthorised guarantees, understated net worth and company personnel transactions among other irregularities.
At 11:45 am, CG Power was trading 19.84 per cent lower at Rs 14.75 per share.
An independent legal firm was appointed by the board of directors to probe certain financial irregularities by certain employees of the company which submitted a report to the board. It pointed out certain misrepresentation in financial statements of the company and unauthorised financial transactions.
The irregularities were "purportedly carried out by identified company personnel (both current and past) including certain non-executive directors, certain KMPs and others identified employees" in breach of rules and without proper authorisation, the report said.
The board said the company will take requisite legal actions. The board meeting started at 3 pm on Monday and concluded at 4 am on Tuesday, the company informed stock exchanges in regulatory filings.
CG Power and Industrial Solutions has business interests in diverse areas including pulp and paper, power transmission and distribution equipment and services, food processing, farm forestry, chemicals, energy, infrastructure, information technology (IT) and IT-enabled services.
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