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CG Power Slumps 20% After Probe Points Out Certain Financial Irregularities


Shares of CG Power & Industrial Solutions Ltd. hit a 52-week low on Tuesday after plunging a massive 20% to Rs. 14.75 on the BSE against its previous close of Rs. 18.40 per share.


CG Power Slumps 20% After Probe Points Out Financial Irregularities

The stock from the capital goods segment lost after the company's Risk and Audit Committee raised concerns over five of the issues that were proving detrimental for the company. The issues include related party transactions, unauthorised guarantees, understated liabilities, understated net worth as well as company personnel transactions.

As per a CNBC report, a legal firm was appointed to probe financial irregularities indulged in by some of the employees of the company which submitted its findings to the company's board. In its report, the law firm highlighted some illicit financial transactions as well as misrepresentation in company's financial statements.

The irregularities were "purportedly carried out by identified company personnel (both current and past) including certain non-executive directors, certain KMPs and others identified employees" in breach of rules and without proper authorization, the report added. The board said the company will take required legal course.

Also, in trade today, CG Power is among the top losers on BSE.

Read more about: capital goods
Story first published: Tuesday, August 20, 2019, 11:25 [IST]
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