CG Power case: Look out circular issued against ex-chairman Gautam Thapar

The case could be referred to the Serious Fraud Investigation Office (SFIO) if the preliminary inspection report points to a fraud and gaping holes in the books of the firm

The government has issued a look-out circular against Gautam Thapar, the ousted chairman of fraud-hit CG Power and Industrial Solutions, said senior official.

“We are looking at the gaps in the company’s books. The circular has been issued as a pre-emptive measure,” the senior official added. The circular has been issued at the behest of the Ministry of Corporate Affairs (MCA), which is currently inspecting the books of the company. The case could be referred to the Serious Fraud Investigation Office (SFIO) if the preliminary inspection report points to a fraud and gaping holes in the books of the firm.

A month ago, the company was hit by an accounting scandal and the liabilities of the group were found understated by over Rs 1,600 crore for 2017-18. “Funds diverted from CG Power were fraudulently transferred to its promoter company Avantha Holdings and entities related/connected with the company, Avantha International, Acton, Ballarpur International, Mirabelle and Solaris, without knowledge of the company and without any approval from its board,” the report of the risk and audit committee said.

The regional director’s (RD’s) office of the MCA – western region – is conducting the inspection and is likely to submit its report soon. The RD’s office has questioned more than 20 persons in connection with the matter so far. Resignation of the company’s auditor had triggered an MCA inquiry into CG Power and Industrial Solutions..

Saudi’s inability to stop oil attack exposes gaps even with top US defences

The Saudis clearly were not prepared for this assault, which was unusual in its execution and unprecedented in its targeting

Saudi Arabia spent billions to protect a kingdom built on oil but could not stop the suspected Iranian drone and missile attack, exposing gaps that even America’s most advanced weaponry failed to fill. In addition to deciding whether that firepower should be turned on Iran in retaliation, the Saudis and their American allies must now figure out how to prevent a repeat of last weekend’s attack – or worse, such as an assault on the Saudis’ export facilities in the Persian Gulf or any of the desalination plants that supply drinking water.

Secretary of State Mike Pompeo was asked Wednesday on his way to Saudi Arabia how it was possible that the kingdom could have dropped its guard, failing to stop any of the low-flying cruise missiles or armed drones that struck the Abqaiq oil processing center – the largest of its kind in the world – and the Khurais oil field. Even the best air defences sometimes fail, he replied.

“We want to make sure that infrastructure and resources are put in place such that attacks like this would be less successful than this one appears to have been.” Easier said than done. “This is an attack of a scale we’ve just not seen before,” Pompeo said. He called the strike “an act of war” but not say what military response might follow…

No jail, CSR non-compliance should be a civil offence: Govt-appointed panel

Recent policy had provided for a 3-year jail term for violations

Companies News: Barely a week after Finance Minister Nirmala Sitharaman’s assurance to corporate entities to review the jail-term provision in the corporate social responsibility (CSR) law, a high-level committee has recommended that non-compliance with CSR norms be made a civil offence and moved to a penalty regime. This is a departure from the recent policy change which had provided for a three-year jail term for violating CSR norms.

The committee chaired by Injeti Srinivas, secretary, corporate affairs ministry, submitted its recommendations to Sitharaman on Tuesday, suggesting that CSR expenditure be made tax deductible, in order to incentivise CSR spending by companies. “There is a need to address the distortions in CSR spending arising from prevalent tax structure.”

It has suggested a provision to carry forward unspent CSR balance for three to five years. “We are glad that our voices have been heard. It is a step in the right direction,” said Rumjhum Chatterjee, chairperson, National Committee of CSR, Confederation of Indian Industry….Read More

Trust deficit prevails in the board, says IndiGo’s independent director

In his mail to the former Securities and Exchange Board of India (Sebi) chairman, Khanna also questioned Damodaran’s call for meetings of the board

IndiGo’s independent director Anupam Khanna has called upon chairman M Damodaran to come up with “confidence-building measures” to remove the “trust deficit” that has built up in the board of India’s largest airline.

In his mail to the former Securities and Exchange Board of India (Sebi) chairman, Khanna also questioned Damodaran’s call for meetings of the board, as well as audit and remuneration committees after IndiGo‘s annual general meeting (AGM) later this month, to resolve governance issues. The mail was shared by co-founder Rakesh Gangwal on August 7.

Damodaran’s suggestion was against what was proposed by Gangwal, who had alleged that the new proposed structure of the board will only add to the powers already enjoyed by InterGlobe Enterprises (IGE), owned by fellow co-founder Rahul Bhatia. And if the proposed structure was cleared at the AGM, it would lead to further governance issues, Gangwal had argued. He wanted the steps to be taken before the AGM…