UPL Ltd said that it believes and reassures that all corporate governance norms and applicable laws have been duly complied with.
UPL Ltd share price surged 4 per cent to Rs 456.40 apiece in intraday deals on BSE after the agrochemicals firm denied that whistleblower is a member of the board against what was reported in the news. UPL management also clarified that the allegations were disclosed and dealt with as far back as in the year 2018. The company said the allegations were discussed and investigated by the audit committee and the board in 2017 and 2018.
UPL Ltd shares settled 0.83 per cent lower at Rs 434.80 apiece on BSE in Friday’s session. An identical whistleblower complaint was received by the audit committee of UPL earlier on June 2, 2017. The company said that the whistleblower committee, which comprised only independent directors, was constituted by the audit committee to investigate the allegations and all the contents of the complaint was fully disclosed. “UPL believes that there is a sustained campaign to malign the image of the company and the group,” UPL Ltd said.
Around 10 AM, UPL Ltd shares were trading 1.84 per cent higher at Rs 446.50 apiece on BSE, as compared to a 0.56 per cent rise in the S&P BSE Sensex. “It is important that the correct picture is presented to all its stakeholders as the news report seems to create an unseemly controversy about corporate governance at UPL,” it said in its clarification.
The agrochemical firm said that the company undertook a detailed review, including each related party transaction (RPT), with the help of an independent law firm, and had concluded two and half years back that those transactions were at arm’s length and in compliance with applicable laws. “Thereafter, the complainant was duly informed about the findings of the Audit Committee and the matter was closed,” it added.
The company in its classification further said that there has been no siphoning of funds. “UPL confirms that all transactions in question were on arm’s-length basis and that there has been no siphoning of funds, as alleged in the news article; and there is no new complaint against UPL,” it said.
UPL Ltd said that it believes and reassures that all corporate governance norms and applicable laws have been duly complied with. The company will evaluate all possible legal options available with it to defend its position and image. In the previous session, UPL shares plunged nearly 11 per cent.