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Hinduja Global Options’ short-term loans to group companies raise concerns

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Enterprise course of administration agency Hinduja Global Options’ (HGS) short-term loans of greater than Rs 340 crore to group companies have raised concerns amongst company governance corporations. The corporate confirmed final week in a post-earnings name that the loans got to Hinduja Group Ltd, Hinduja Realty Ltd, and Hinduja Power Ltd, and have been repaid.

Analysts have expressed their concerns with such loans given to associated events and the corporate’s delayed disclosure on the matter. “The loans given are a part of the treasury administration (and) are short-term in nature, and are pending long-term deployments based mostly on the wants of the corporate,” Srinivas Palakodeti, CFO, HGS informed analysts.

Ajay Sharma, an analyst, repeatedly requested the administration in the course of the name in regards to the logic behind such associated celebration loans. “No, I’m not saying that. So, I can verify all the pieces was repaid and redeployed as required after taking over one thing that’s required for utilization of the corporate,” Palakodeti mentioned responding to Sharma’s whether or not any money is excellent to the associated celebration presently.

Shriram Subramanian, founder and managing director, InGovern, a proxy advisory agency, mentioned this might be a company governance problem due to the delayed disclosure. “It’s not within the unusual course of enterprise as a result of they haven’t disclosed it in a way more forthcoming method. That seems to be a company governance problem,’ mentioned Subramanian. The administration’s responses to the questions on loans within the analysts name was not convincing, he added.

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