CG Power is part of Avantha Group, founded by Gautam Thapar, and has two different segments as power systems and industrial systems.
Shares of CG Power and Industrial Solutions remained in a free fall, plunging as much as 20 percent again, to hit an all-time low of Rs 11.80 on BSE on August 21.
As per media reports, the Ministry of Corporate Affairs (MCA) has ordered an inspection into the affairs of the company after reports of financial wrongdoings in the company came into the light.
Shares of the company had fallen 20 percent on August 19 after the company, in a regulatory filing, said that an internal probe uncovered some irregularities in the financial statements of the company.
“While working on one of its priority tasks of seeking refinancing of certain facilities and as a part of conducting financial analysis in this regard, the Operations Committee was made aware of some unauthorised transactions by certain employees of the company,” the BSE filing said.
An independent legal firm appointed by the board of directors to probe financial wrongdoings pointed out certain misrepresentation in financial statements of the company and unauthorized financial transactions.
The company plans to conduct a detailed forensic investigation to establish the accountability of wrongdoings and will take requisite legal actions to protect its interest.
CG Power is part of Avantha Group, founded by Gautam Thapar, and has two different segments as power systems and industrial systems.
