Manpasand Beverages’ CMD Willing To Step Down Over Tax Fraud
Manpasand Beverages said its CMD is willing to take necessary steps in the best interest of the company, including stepping down.
Troubled fruit juice maker Manpasand Beverages Ltd.' Chairman and Managing Director Dhirendra Singh on Thursday said he is willing to step down from the day-to-day operations of the company over an alleged Goods and Services Tax fraud and arrests of its top executives.
In a regulatory filing on Thursday, Manpasand Beverages said its CMD Dhirendra Singh "is willing to take all necessary steps in the best interest of the company and the stakeholders, including stepping down from day to day operations of the company if required".
The filing added that Singh is "assessing the recent developments and situation" and is "currently in talks with Ernst & Young to advise and the guide the company on the above matters".
The Commissioner of Central GST and Customs carried out search and seizure proceedings at various premises of the company on May 23, and further inquiry was conducted on May 24, at GST Bhavan office of Vadodara. Following this, Manpasand Beverages' Managing Director Abhishek Singh, his brother Harshvardhan Singh and the Chief Financial Officer Paresh Thakkar were arrested.
Post the search by Commissioner of Central GST and Customs, many directors of the company have also tendered their resignation. The company's independent directors Chirag Doshi, Bharat Vyas and Milind Babar, along with director Dhruv Agrawal tendered their resignation last month.
In May 2018, Manpasand Beverages' statutory auditor Deloitte Haskins & Sells had resigned from the company citing irregularities in accounts.
Shares of the company have been on a downtrend since May 24, when the company said that the Commissioner of Central GST and Customs carried out search and seizure proceedings at its various premises.
The stock has fallen nearly 60 percent since May 24. The shares of the company Thursday touched its 52 week low and its lower circuit limit of Rs 44.15, down 4.95 percent on Bombay Stock Exchange Ltd.