Finance News
Complete Finance & Business News Journal

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

21

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 advised analysts.

Ajay Sharma, an analyst, repeatedly requested the administration throughout 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 stated responding to Sharma’s whether or not any money is excellent to the associated celebration at present.

Shriram Subramanian, founder and managing director, InGovern, a proxy advisory agency, stated this might be a company governance challenge due to the delayed disclosure. “It’s not within the bizarre 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 challenge,’ stated Subramanian. The administration’s responses to the questions on loans within the analysts name was not convincing, he added.

Get real time updates directly on you device, subscribe now.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Translate »