The companys annual report states that the board has come across certain personal expenditure of the erstwhile MD SK Alagh and his relatives/related parties. The matter is being examined by an independent external firm of chartered accountants appo-inted by the board whose report is awaited. However, it is exp-ected that the amount involved will not have a material impact on the financial statements including the profit and loss account of the company considering the size and nature of the business of the company, the annexure to the auditors report in Britannias balance sheet states. The board of Britannia had appointed CC Chokshi & Co to undertake an independent examination of all relevant papers and material and to submit to the board their report. The report is expected to be tabled within the next two months.
The directors report mentions that based on a careful review of facts and documentary material placed before the board and what emerged therefrom, the directors were unanimously of the opinion that Mr SK Alagh as MD had conducted himself in a manner clearly incompatible and inconsistent with the duties and responsibilities he owed as MD of a public limited company to the board as well as to the shareholders of the company, that he had breached the trust and confidence which, in good faith, had over the years been reposed in him both by the chairman and the board of directors and had, as a result, forfeited the boards trust and confidence.