Rice exporter KRBL has refuted the allegations by an Independent Director over governance standards around the board's decisions in an exchange filing on September 15 and said a reputed third-party firm will be appointed to review the 'observations' within 30 days.
"An Independent reputed third-party firm be appointed to conduct a thorough review of the Observations as soon as possible but not later than 30 days and present the report to the respective Board Committees," KRBL said after convening separate meetings of independent directors and the board, where the observations were 'discussed in detail'.
"Taking cognizance of the Observations and as a matter of good corporate governance, separate Meetings of Independent Directors and the Board were convened at a shorter notice today i.e. on Monday, September 15, 2025," KRBL added. Shares of the rice exporting company are still languishing near the lows of the day.
KRBL said the findings of the report shall be shared with the relevant committees of the board. "The respective Board Committees should deliberate on the report relating to their area of Observations and submit recommendations to the Board."
Investors had dumped the shares in early trading session, sinking it by nearly 10 percent following the statements of the independent director - disclosed by KRBL - triggered a selloff. The management, in its subsequent clarification has tried to assure by stating that systems and processes 'commensurate with the size of the Company’s operations' are in place.
"It was noted that the Company has in place systems and processes commensurate with the size of the Company’s operations to ensure that any kind of financial impact or non-compliances are highlighted to the Board and respective Committees, with full disclosures to the Stock Exchanges in compliance with applicable laws, as and when required," KRBL said.
Anil Kumar Chaudhary had resigned on September 08, 2025 with immediate effect, and the company informed the exchanges about the development the next day, with the resignation letter citing the reason shared in a filing on September 14. The director cited 'certain issues' that have persisted despite efforts to address them, which have posed 'professional and ethical dilemmas'. One of the grave charges mentioned in the resignation letter by Chaudhary has alleged that dissent on the board of KRBL is 'suppressed or sidelined'.
Despite the sharp selloff, shares of KRBL have been higher by over 32 percent so far this year.
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