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R.S. Ramani, Chief Financial Officer of 8K Miles Software Services, a city-based IT company, has resigned to enable him to have necessary time to clear all 'baseless' allegations that have been circulated in the social media in the last few days.
At today's annual general meeting, which was barred for the media, the CMD & CEO, Suresh Venkatachari, had a tough time convincing shareholders about various allegations against the company.
On condition of anonymity, a shareholder who attended the AGM said, the company is working out a restructuring plan that includes buyback, bringing in more minority shareholders and may even go for a Nasdaq listing.
After the AGM, Venkatachari declined to comment to BusinessLine on various issues, including corporate governance. "I will talk to you next week," he said.
On Friday, the company in a communication to the exchanges, said Ramani had expressed his desire to step down from his role as CFO, to enable him to have the necessary time to clear all the 'unsubstantiated' allegations of 8K Miles Media Pvt Ltd.
The company is in the process of appointing a new CFO, the communication said. The board also discussed the prospective business growth and strategies of the company.
In a separate communique to the bourses last week, it said: "We would like to clarify that 8K Miles Media Pvt Ltd is not a subsidiary or an associate company of 8K Miles Software Services Ltd, and added Ramani is the principal shareholder (83.06 per cent stake ) of 8K Miles Media Pvt. Ltd.
Venkatachari, principal promoter of 8K Miles Software Services Ltd, owns just 0.18 per cent in 8K Miles Media Private Ltd.
8K Miles Software Services is not involved in any manner to the issues raised by the auditors of 8K Miles Media Private Ltd. The board of 8K Miles Media is looking into all the allegations raised by its auditors and appropriate action would be taken on the same.
GHG Associates, statutory auditor of 8K Miles Media Private Ltd, had resigned in April alleging the misuse of its audit firm letterhead and seal and forging of the signature of its partner, S Haresh, in nine ODI certificates to transfer Rs 46 crore overseas (from Indian Bank, Porur, Chennai) to 8K Miles India Holdings Inc, New Jersey, between June 2017 and March 2018.
At the AGM, shareholders also showed their frustration on the significant drop in share price from its 52-week high of Rs 1,024 on November 29, 2017 to a current level of Rs 192.25. "The stock would have fallen sharply but for the 5 per cent circuit filter," said another shareholder.
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