PTC India Financial Services (PFS), a subsidiary of PTC India, has appointed Mahendra Lodha as Director (Finance) and CFO, the company said in a regulatory filing.
PTC India Financial Services is a finance company and systematically important non-deposit-taking NBFC. It is an Infrastructure Finance Company, classified by the RBI and listed on the NSE and the BSE.
Earlier, PFS appointed S Siva Kumar as Executive Director, besides three independent directors on its board.
“PFS has brought in fresh blood with proven skills in its leadership team. The senior management now comprises seasoned professionals and experts,” an official said, adding these decisions will resolve previous issues.
In the wake of the resignation of three independent directors on January 19, 2022, citing concerns over corporate governance and compliance, followed by the departure of two more independent directors on December 2, 2022, PFS faced obstacles in meeting financial reporting obligations. Its parent company PTC India too was affected.
As part of its commitment towards transparency, PTC and PFS supported the completion of all the inspections conducted by the RBI, lenders, forensic auditors and statuary auditors, the official said.
PFS posted a net profit of Rs 36.41 crore for the quarter ending March 2023, an increase of nearly 46 per cent year-on-year. The company’s net interest margin (NIM) rose to 4.35 per cent in Q4 of FY23, while its total income for the same period decreased to Rs 199.70 crore from Rs 231.35 crore in the preceding year.
For the entire fiscal 2022-23, PFS recorded a profit after tax (PAT) of Rs 175.81 crore, reflecting significant growth compared to the previous year’s figure of Rs 129.98 crore.
With a focus on reestablishing stability, PFS has already appointed new independent directors, and most of the required committees, as per regulations, are in place.
Earlier, following the resignation of independent directors, PFS engaged an independent firm to conduct a forensic audit, culminating in the submission of the final Forensic Audit Report (FAR) on November 4, 2022.
In addition, the management enlisted the services of a professional firm to review the response provided in the FAR and the accompanying documents. The Board of Directors reviewed the forensic auditor’s report during meetings held on November 7 and November 13, 2022, ultimately concluding that no material impact on the company’s financials or instances of fraud or funds diversion were identified.
