(MENAFN- IANS)
Mumbai, Jan 25 (IANS) Fraud-hit CG Power and Indutrial Solution ha ought the Centre' approval to remove K K Mankehwar & Co (KKM) a one of it joint auditor due to certain alleged "unexplained" payment made to the auditor from the company.
In a regulatory filing, CG Power on Friday evening aid that it Board of Director ha determined that KKM cannot be conidered to be independent.
"In the coure of review of payment made in the pat year, the Company ha come acro certain unexplained payment made to M/ K K Mankehwar & Co, one of the Joint Auditor of the Company (KKM), from the Company and it ubidiarie a well aociation of it partner with certain identified entitie named in Phae-I invetigation report ('Identified Entitie')," it aid.
The filing further aid that KKM in it repone confirmed the aociation of one of it partner with the identified entitie during the year 2016-17 which wa not dicloed at the time to appointment of KKM a tatutory auditor for the financial year 2017-18.
However, it added: "They have tated it had not received any payment other than in capacity of tatutory auditor, though it ha been found that ignificant unexplained payment were made to KKM and it related entitie during 2016-17 to 2018-19."
Conequently, the Rik and Audit Committee (RAC) iued how caue under Section 140 (1) of the Companie Act, 2013 and provided KKM opportunity of being heard, it aid, adding that depite follow up and reminder no ubmiion were made by KKM on the how caue notice."
The filing further aid that the auditor i now not conidered independent and the proce of it removal ha tarted.
The company had lat Augut dicloed the finding of RAC which revealed that the firm and the group together could have under-reported R 3,600 crore liabilitie in financial year 2017 and 2018.
Ertwhile CG Power Chairman Gautam Thapar, CFO V.R. Venkateh and other were removed from the company board in Augut over alleged under-reporting and iphoning of money to Thapar' other firm. They were eventually barred from the tock market and Thapar wa alo ummoned by the MCA.
The Minitry of Corporate Affair had ordered a probe by the Seriou Fraud Invetigation Office (SFIO) into the matter and alo approached the NCLT eeking to reopen the financial tatement of CG Power Indutrial Solution for 2015-19 on the bai of the company' announcement about financial irregularitie.
The Mumbai-bench of the National Company Law Tribunal (NCLT) on Thurday reerved the order on the MCA' plea to reopen it book.
--IANS
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