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    PFS refutes charges of independent directors citing governance lapses

    Synopsis

    The company’s acting chairman and managing director Rajib K Mishra said the Management of PTC India Ltd is committed towards corporate governance of highest standard in its functioning as well as of its subsidiaries.

    1Agencies
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    PTC Financial Services (PFS) on Thursday refuted allegations of corporate governance lapse levelled by its outgoing independent directors and said the matter will be addressed at the board level. An official statement issued by the company said there are differences of opinion at operation and board level of PFS on few issues, which are being looked into by a senior level committee.

    “We are in receipt of resignations from three independent directors mentioning some reasons. We refute the allegations by the outgoing directors, which were due to our adherence to best corporate governance practices under guidance of promoter, regulator and Government of India. The matter will be addressed at the board level and subsequent update will be communicated to all the stakeholders appropriately,” the company informed BSE.

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    The company’s acting chairman and managing director Rajib K Mishra said the Management of PTC India Ltd is committed towards corporate governance of highest standard in its functioning as well as of its subsidiaries. The interest of stakeholders are of prime concern and company would like to assure total transparency and ethical best practices, the statement said.

    “The business practice & model of PTC & PFS have a proven operational track record with strong financials. We are closely monitoring the situation and observed that there are differences of opinion at operation and Board level of PFS on few issues. These issues are of legacy in nature and are being looked into by a senior level committee. We have taken initiatives to address the governance issues,” it said.

    It said PFS is committed towards streamlining all operational processes and adopting best available practices of an NBFC. Maintaining highest ethical standard, all possible steps are being taken to induct reputed professionals to the Board of PFS for sustained future growth of the organisation.

    All the independent directors of PFS, NBFC arm of power trading company PTC India Ltd, resigned on Wednesday citing governance lapses on several occasions by the company management.

    In a letter to the stock exchanges, Sebi, the Reserve Bank of India, and the government, the three independent directors – Kamlesh Shivji Viakmsey, Thomas Mathew T and Santosh B Nayar -- raised concerns about the conduct on the management of the PFS India led by its managing director and CEO Pawan Singh.

    They have alleged that the actions of Singh were in violation of his powers and also questioned the lack of action on part of PTC India, which holds a 65% stake in the NBFC that has a debt of about Rs 11,000 crore.

    The independent directors alleged that Singh unilaterally decided to put on hold the company board’s decision to appoint Ratnesh as PFS director finance and chief financial officer.

    The three independent directors have also raised questions on the disbursement of a Rs 125 crore loan to NSL Nagapatnam Power and Infratech. They said while previous PTC chairman Deepak Amitabh highlighted the corporate governance issues in August last year, the issues remain unresolved. Amitabh resigned from PTC India in November last year.

    “The lack of action on part of the company management is alarming, especially since the company is a listed company and has obligations to not just itself as an entity but also its investors, which is general public,” they said.


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