KRBL Ltd., on Monday has announced that the company to appoint an independent third party firm to review observations made by one of the independent directors, Anil Kumar Chaudhary, who had resigned on Sept. 8, with immediate effect, citing 'certain issues'.
The director cited issues that have persisted despite efforts to address them, which have posed 'professional and ethical dilemmas'. The company informed the exchanges about the development the next day, with the resignation letter citing the reason in an exchange filing on Sept. 14.
The shares of KRBL slumped nearly 10% in trade so far after Anil Kumar Chaudhary, one of the independent directors turned in his resignation. The director had cited corporate governance issues, according to an exchange filing on Sunday.
The company's board met on Monday at a shorter notice to take cognizance of the observations and as a matter of 'good corporate governance' by Anil Chaudhary, as per an exchange filing on Monday.
The board noted that, it 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.
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, the board announced.
The respective board committees should deliberate on the report relating to their area of observations and submit recommendations to the board. "We continue to conduct the business with utmost transparency and integrity and would keep the stock exchanges informed about any further update," as per official release.
KRBL stock fell as much as 12.83% during trade so far to Rs 387.1 apiece on the NSE. It was trading 10.52% lower at Rs 397.40 apiece, compared to an 0.10% decline in the benchmark Nifty 50 as of 2:51 p.m.
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