MUMBAI: Shares of PTC India Financial Services, a lending subsidiary of Power Trading Corporation, fell more than 18% on Thursday after three independent directors quit over corporate governance issues and concerns about the conduct of the MD.
The company said in an exchange filing, “We refute the allegations by the outgoing directors, which were due to our adherence to best corporate governance practices under the guidance of promoter, regulator and the government of India. The matter will be addressed at the board level and an update will be communicated to all stakeholders appropriately.”
The independent directors were former LIC MD Thomas Matthew T, Kamlesh Shivji Vikamsey and Santosh B Nayar. One of the outgoing directors, Mathew, said in his letter that the MD did not allow Ratnesh to function as director finance and CFO despite his appointment being done following a board process.
“Only on January 10, 2022, we were informed by the company secretary that Ratnesh had rejoined NTPC on December 6, 2021. No explanations were given as to why he re-joined NTPC and the circumstances that led to his returning to NTPC,” the letter said.
Mathew also said that there were issues regarding a loan to NSL Nagapatnam Power & Infratech, which was headed for insolvency. He said that the management had held back a forensic report on the company for more than two years. Subsequently, a two-member committee looking into this non-disclosure recommended that the loan account be reported to the RBI as suspected fraud. In addition to these issues, he had highlighted other transactions where the board members had concern over the performance of the company’s management.