An audit committee of CG Power flagged off unauthorised transactions by certain employees of the company leading to an understatement of not only the company’s liabilities but also advances to related and unrelated parties of the group.
In its regulatory filing on Tuesday, CG Power said certain aspects of the company were purportedly provided for as collateral without due authority. The company was made a co-borrower or guarantor ostensibly for enabling unrelated third parties to obtain loans without due authorisation. The company also said these findings will impact financial results reported for the last three financial years. CLICK HERE FOR COMPANY RELEASE
Meanwhile, according to this Business Standard report
, the Ministry of Corporate Affairs (MCA) has ordered an inspection into the affairs of the company.
“The inspection report will be ready soon and appropriate action will be taken,” the report suggested, quoting a senior government official.