New Delhi:
Shares of CG Power and Industrial Solutions on Tuesday tumbled nearly 20 per cent to touch its lowest trading permissible limit for the day amid alleged financial irregularities and some unauthorised transactions by certain employees of the company.
The scrip tanked 19.83 per cent to Rs 14.75 — its lower circuit as well as its 52-week low — on the BSE.
On the National Stock Exchange, it cracked 19.78 per cent to Rs 14.80, its lowest trading permissible limit for the day as also its one-year low.
Its market valuation also plummeted by Rs 206.8 crore to Rs 946.20 crore on the BSE.
Shares of YES Bank, which has nearly 13 per cent stake in CG Power as in the June 2019 quarter, also fell 7.36 per cent to Rs 71.05 apiece on the BSE.
After a marathon meeting CG Power in a BSE filing early morning on Tuesday said, “While working on one of its priority tasks of seeking refinancing of certain facilities and as a part of conducting financial analysis in this regard, the Ops Committee was made aware of some unauthorised transactions by certain employees of the company.”
The board meeting commenced at 3:00 pm on August 19, 2019, and concluded at 4:00 am on August 20, 2019.
The Operations Committee was also made aware of a letter received by the company from a particular financing company regarding a certain interest payment failure which the Operations Committee was unable to trace or ascertain from the financials of the company, the filing added.
The board also found that the total liabilities of the company and the group may have been potentially understated. The filing also said that advances to related and unrelated parties of the company and the group may have been potentially understated.
“The total liabilities of the company and the group may have been potentially understated by approximately Rs 1,053.54 crore and Rs 1,608.17 crore respectively as at 31 March 2018; and by Rs 601.83 crore and Rs 401.83 crore respectively as at 1 April 2017,” the filing added.
“Moreover, advances to related and unrelated parties of the company and the group may have been potentially understated by Rs 1,990.36 crore and Rs 2,806.63 crore respectively as at March 31, 2018; and by Rs 1,479.34 crore and Rs 1,331.47 crore respectively as at April 1, 2017,” it said.
The filing further said the company’s net worth was potentially understated due to unauthorised and inappropriate write-offs and charges debited to the profit and loss statement during the year ended March 31, 2018 and April 1, 2017.
