![]() ![]() Managing director K N Neelkant was away from day-to-day management during the period of investigation. These transactions appear to have been carried out by various means, including inappropriate netting off, using ostensibly unrelated third parties, routing transactions through subsidiaries, promoter affiliate companies and other connected parties.”Īccording to CNBC-TV18, CG Power recently saw many management changes. Their statement claimed, “These (transactions) were purportedly carried out by identified company personnel (both current and past) including certain non-executive directors, certain KMPs (key managerial personnel) and other identified employees in breach of the Rules of Procedure of the Company. The company’s board noted that certain assets were purportedly provided as collateral without due authority and that CG Power was made a co-borrower and/or guarantor for enabling seemingly unrelated third parties to obtain loans without due authorisation. ![]() So what exactly happened in this fraud case?ĬG Power’s BSE filing claimed, “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 Operations Committee was made aware of some unauthorised transactions by certain employees of the company.” The filing stated that 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.ĬG Power added that advances to related and unrelated parties of the company and the group may also have been potentially understated by Rs 1,990.36 crore and Rs 2,806.63 crore, respectively. Such cases have led to increased scrutiny and regulatory catch-up to plug any and all loopholes. Money from the loans was allegedly siphoned off by “identified company personnel, both current and past, including certain non-executive directors.”įor India Inc, these revelations add to the spate of lapses in corporate governance that have spooked investors over the last year, and prompted many audit firms to abruptly cancel their contracts with companies like Fortis and Manpasand Beverages. Shares of the already beleaguered company slumped by the daily 20% limit to, taking the year’s decline to 70%.ĬG Power said some liabilities and advances to related and unrelated parties have been understated and some assets were purportedly provided as collateral. In today’s edition of Digging Deeper, we’re looking at the latest case of corporate misgovernance.ĬG Power & Industrial Solutions Ltd., which makes power equipment - electrical switchgears and the like - declared earlier this week it would restate earnings after becoming aware of some “suspect, unauthorized and undisclosed” transactions. The financial fraud at the Gautam Thapar-promoted CG Power allegedly runs into thousands of crores. Those transactions led to a potential understatement of the liabilities of CG Power as well as advances given to related and unrelated parties of the company and the group. CG Power and Industrial Solutions Ltd, which was previously known as Crompton Greaves - you remember the table fans? - that company’s current avatar informed stock exchanges on Tuesday last that investigations by an independent law firm revealed some employees had carried out unauthorised transactions. The Preacher exposes three temptations that we all struggle with envy, isolation, and pride.The CG Power fraud, which came to light a few days ago, has once again turned the spotlight on irregularities in corporate governance in India. In this episode, we talk through Ecclesiastes 4:4-16. Please share this episode and give an honest five-star review! Thanks for listening! New episodes drop every Wednesday (Lord willing). We'd appreciate it if you would click that "follow" button to stay updated on new content. ![]() In this episode, Josh and Alex talk about the question, "Does God care how we worship?" They work through Ecclesiastes 5 as they "dig deeper" into the previous week's sermon at FBC Monroe City, MO. ![]()
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