PTC India Fin in trouble

PTC India Financial is having a tough day. The stock went down almost 20% to Rs.20.65, just a tad away from its LC of the day at Rs.20.55. Ironically, the stock had hit a new high yesterday at Rs.25.90.

The company announced today morning that it has received resignations from three independent directors mentioning some reasons.

There are reports of serious governance lapses and compliance by PTC India Financial's management.

Thomas Mathew, one of the directors who resigned said in the letter that there are concerns around the handling of the appointment of Ratnesh as finance director and chief financial officer. They also alleged that CMD Rajib Kumar Mishra did not allow Ratnesh to join and function as director of finance and chief financial officer and put his joining on hold without informing the board.

Interestingly, there is no mention of Ratnesh’s second name.  

On a more serious note, the independent directors also raised a red flag over a 2-year delay in tabling a forensic audit report on bridge loan of Rs.125 crore to Nagapatnam Power and term loan of Rs.150 crore Infratech Pvt Ltd.

A committee, comprising of two independent directors recommended that the Nagapatnam matter be reported to the central bank as a suspected fraud.