CG Power has been very volatile for the past few days, hitting the lower circuit and new lows than the other way round. Yesterday, the stock hit the 5% UC at Rs.8.79% the moment it opened for trade and today too it was the same – it opened and immediately hit the 5% UC at Rs.9.22.
Two news from the company. Firstly, its Board is scheduled to meet on the 28th of Jan to consider and announce the Q1, Q2 and H1FY20 earnings. Finally!
And the second news is the much awaited order from the Mumbai NCLT. It came in late in the evening wherein the NCLT has reserved its order on a plea from the corporate affairs ministry to appoint an independent auditor to restate the accounts of CG Power & Industrial Solution.
Last month, the tribunal had rejected a plea from the ministry to reopen the books stating that the move was based on a report by an auditor appointed by the company itself.
The founder Gautam Thapar was fired by the Board in August on alleged defrauding the company of Rs.3000 crore. And this was based on an audit report published by Vaish Associates on the company; NCLT has termed it as bogus.