CG Power and Industrial Solutions, the beleaguered power systems maker, had fired its Chief Financial Officer VR Venkatesh citing misconduct and breach of trust.
"This is to inform you that on recommendation of the Nomination and Remuneration Committee of the Company, the Board of Directors of the Company have at its meeting held on August 30, 2019 terminated the employment of Mr. V. R. Venkatesh as the Chief Financial Officer of the Company, with immediate effect," said CG Power in a statement.
"The termination of the employment of Mr. Venkatesh is due to the grave nature of the misconduct and breach of trust on his part and having knowingly undertaken actions which were detrimental to the interests of the Company and its stakeholders," the company statement added.
Venkatesh was the second head to roll out from the scam-ridden company.
Earlier, the board had sacked Gautam Thapar, Chairman and promoter of the company.
The internal investigation launched by the board had unearthed several multi-crore transactions that point towards alleged fund diversion, mismanagement, unauthorised advances and corporate guarantees to promoter affiliate companies and connected parties.
The company, which had restated its FY18 numbers, saw its consolidated receivables balances from various subsidiaries, promoter affiliate companies and connected parties jump from Rs 131 crore to Rs 2,657 crore. Advances to related and unrelated parties of the company may have been potentially understated by Rs 1,990.36 crore, as on March 31, 2018.
Thapar denied the allegations of misappropriation of funds.
While CEO and MD KN Neelkant, who was sent on leave on May 10, continues in his role for now.
FY19 financials
CG Power on August 31 stated its FY19 financial numbers. The company announced a net loss of Rs 507 crore in FY19 and revenues of Rs 8,048.82 crore.
The statutory auditor KK Mankeshwar & Co, approved the FY19 numbers with heavy qualifications.
"Following discovery of many unauthorised transactions Management which have been incorporated in the financial results, further is unable to estimate the forensic investigation is being commissioned to ascertain impact, completeness and establishing wrong doing," the company said.
"The above reasons for the same may result in revision/ restatements of Financial Results," the company added.
