CG Power finds major financial irregularities

New Delhi, August 20 

Gautam Thapar-promoted CG Power and Industrial Solutions Ltd today said an investigation by its Board found major governance and financial lapses, including advances to related and unrelated parties and liabilities of the company and the group potentially being understated by hundreds of crores of rupees.

The company’s current and past employees, including unnamed non-executive directors and certain key managerial personnel (KMP) provided certain assets of the company as collateral and made the firm a co-borrower or guarantor to obtain loans without due authorisation.

The Board said there were some unauthorised transactions carried out by ‘certain employees’, which led to a potential understatement of not only the company’s liabilities but also advances to related and unrelated parties. — PTI