- PTC India’s share price tanked by 9.79% today while PTC India Financial Services fell by more than 19% during the early trading hours due to the resignation of three independent directors.
- Kamlesh Vikamsey, Thomas Mathew, and Santosh Nayar stated that the management failed to act on the “various instances of serious lapses in corporate governance.”
- PTC India which holds 65% shares of PTC India Financial Services, did not take any action against the issues.
PTC India’s share price tanked by 9.79% today while PTC India Financial Services fell by more than 19% during the early trading hours. PTC India Financial Services provides both equity and debt financing and is registered with the RBI as a non-banking financial institution.
Three independent directors of PTC India Financial resigned on Wednesday due to lapses in corporate governance. The company will address the matter at the board level and the stakeholders will be updated appropriately in order to assuage their fears.
Kamlesh Vikamsey, Thomas Mathew, and Santosh Nayar- the independent directors stated that the management failed to act on the “various instances of serious lapses in corporate governance” that they highlighted. They raised an issue on the appointment of Ratnesh as finance director and CFO and alleged that even after his appointment was done via a “board run process”, the chairman and managing director Pawan Singh had put off the joining of Ratnesh.
In their resignations, they alleged that Singh’s actions were in violation of his powers and pointed to a unilateral change in conditions of a Rs 150 crore highway loan by the company. They expressed concerns regarding an audit report on bridge loans extended to Nagapatnam Power and Infratech worth ₹124 and ₹150 crores, whose filing had been delayed by two years.
They were concerned about why PTC India which holds 65% shares of PTC India Financial Services, did not take any action against this. It is expected that the NBFC has a debt of close to 11,000 crores.
A committee of two independent directors suspected the Nagapatnam issue to be a fraud and suggested that it should be reported to the RBI.
The company has submitted copies of their resignation letters to the stock exchanges. It is possibly the first instance where all independent directors have resigned together.
