The company seems to have handled their crisis communications as well as could be possible. They did a investors concall where they repeatedly stressed the governance issues were related to best practices around communication and unrelated to operational and financial issues.
Quoting from the transcript: “Well, I’m repeating that. I said, I’m reconfirming to you with no uncertainty, the points what he has put down to the Chairman are related to the process improvement and the transparency. I’m reiterating once again that there is absolutely and absolutely nothing about financial irregularities or non-compliance of any law or any requirements of this. “
Link to transcript: https://www.bseindia.com/xml-data/corpfiling/AttachHis/be1984b7-22b5-4c9d-b096-77da2bcf399c.pdf
They followed that up with a company statement last weekend: “Further to our disclosure dated 8th June 2024 regarding resignation of one of our independent directors, i.e. Mr. Marc Desaedeleer, we wish to inform you that at the request of the Chairman of the Company (i.e. Mr. Vinod Tanti), the Chairman of the Audit Committee (i.e. Mr. Gautam Doshi) has agreed to take up the responsibility of evaluating suggestions on corporate governance practices of the Company. In this regard, the Chairman of the Audit Committee has decided to appoint Khaitan & Co, an eminent law firm in India, to conduct a review. To further aid the process, certain additional advisors may be appointed as required from time to time. “
Link to statement: https://www.bseindia.com/xml-data/corpfiling/AttachHis/88342726-758e-4081-ae6a-dbcfa4e84730.pdf
My interpretation – this is certainly messy and something I would have liked to avoid as an investor. However the lack of detail in the resignation letter is also a concern for me. The management team should have given more specifics in their investors concall as well.
Disclosure: Invested.
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