At end of a day on which its shares fell as much as 15.5 per cent during intra-day trading after media reports about a whistleblower claiming diversion of funds by the company’s promoters, agrochemical maker UPL‘s Global CEO Jai Shroff sought to clarify that the reports were “completely malicious”.
Even as the scrip finally settled around 11 per cent lower, UPL held a call with analysts and media after the end of trading hours. On the call, Shroff said this issue was first brought up in 2017 before the board and the audit committee chairman. “It was investigated by the board and the audit committee involved the auditors, who reviewed the transactions of the last seven years between any of the family investment companies and any other companies mentioned here,” he said, adding that they “found them to be ok.” Shroff said UPL’s business is strong, safe and has got great potential to grow.
Hardeep Singh, independent director and chairman of the audit committee of UPL, said no member of the board or member of audit committee has made a fresh complaint. The management claims to have checked with all present and past board members.
Speaking about the residential property concerned, Shroff said UPL had rented the place for him to stay as and when he’s residing in India. “The rent agreement expired on March 31, 2019 after which UPL has not renewed it,” he said.
Speaking about Sadafuli, the management clarified it is not owned by anyone in the UPL group and is an unrelated party. “The holding company is owned by Sameer Mehta who used to lease it to UPL,” Shroff said.
The management said it is normal for companies in India to rent accommodation for their CEO and other senior management.
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