Corporate Governance is very important, more especially in case of listed companies. But materiality and same complaint, if ignited by a whistleblower, to which wind is given by Electronic Media, creates suspicion. More especially, when in past complaints were seen filmsy, with vested interests. UPL has also issued clarifications to the stock exchanges last evening on this as well.
UPL is seen to be one victim of such malpractice. We are not defending UPL, but being globally 5th largest agro chem company, with over 34 plants in 5 Continents, with an annual income of Rs. 40k cr. PBT of Rs. 3k cr., is alleged of fund diversion of Rs. 25 cr and in an another instance of Mauritius Auditor resigning. Both were lapped up by Electronic Media, by grilling 3 anchors at a time to UPL CEO, with framing of questions wrongly, while ulterior motive was seen evident.
One Anchor asked that company auditor KPMG resigned, which was corrected by CEO that Mauritius subsidiary Auditor KPMG resigned, due to poor infrastucture at their end, which was holding consolidated results, in concurrence with KPMG, who remains auditor of parent UPL. This was revealed on same channel by same CEO about a week back as well. Company has about 250 subsidiaries, due to its global presence. Even rent agreement, having expired on 31st March, 19, with monthly rent payment of Rs. 25 lakh, for accomoadtion of UPL CEO, was asked of aggregate rent paid of the agreement tenure, by Anchor, to make figure look big.
Insiders say that this whole dirty analysis of Media, was in collusion with Big Fish, who wanted to acquire large chunk, due to positive outlook seen on the company, as UPL is vying to become globally 3rd largest crop protection and not an agro chem company, after acqusition of Arysta Life. On Thursday 10th Dec, about 1.70 crore shares were marked for delivery at an average rate of Rs. 432. This means gullible, innocent and scared retail investors largely exited from stock, which were lapped up by BIG FISH. Mission accomplished.
Media and Big Fish say - Tumhari bhi jai jai, hamari bhi jai jai.