10:46
PVR Inox said a preliminary examination of anonymous allegations of impropriety by certain employees did not indicate any evidence of kickbacks. The multiplex chain stressed that the assessment was undertaken despite the allegations lacking specific and verifiable details, according to a stock exchange filing.
The clarification comes after two promoters of the company received anonymous communications in early April containing allegations of impropriety by certain employees. According to PVR Inox, the communications did not explicitly name a former executive but referred to certain acronyms and initials instead.
The company said the communications also did not provide specific actionable information, including details of alleged instances, dates or the names of developers who were purportedly involved in providing kickbacks.
The allegations were promptly forwarded by the promoters to PVR Inox for further consideration in accordance with the company's policy.
Despite the anonymous nature of the communications and the absence of verifiable details, the company decided to engage external third-party experts to conduct a preliminary assessment. 'The preliminary examination also did not indicate any evidence of kickbacks,' PVR Inox said, underlining the outcome of the assessment.
The film exhibition company said the executive resigned from PVR Inox on May 4, citing personal reasons. The company said it accepted his resignation, subject to his acceptance of continuing obligations towards the company, and reserved all its rights and remedies.
PVR Inox further clarified that the executive was not asked to leave the company. Following his exit, the company informed the stock exchanges through an intimation dated May 25.
The company said the external assessment was initiated as part of its approach to corporate governance, even though the communications received by the promoters did not contain sufficient information to independently verify the allegations.
Reiterating its governance framework, PVR Inox said, 'The company places the highest importance on strong corporate governance, ethical business practices, and accountability across the organisation.' The company added that it has established policies, processes, and internal controls to guide its operations and relationships with stakeholders.
PVR Inox said it remains committed to conducting its business responsibly and in compliance with applicable laws and its established governance standards. It also reiterated its commitment to integrity, transparency, and accountability across the organisation.
The company's clarification effectively distinguishes between the receipt of anonymous allegations and the findings of its preliminary examination, which it said did not uncover evidence of kickbacks.
In Monday's trade, PVR Inox shares ended 6.13 per cent lower at Rs 1,152 apiece after hitting a low of Rs 1,125.7 apiece.
--Sharleen DSouza, Business Standard
