on Thursday claimed that P B Vijayaraghavan and Co.’s appointment as statutory auditor has been rejected by its shareholders.
Two of the four items on the bank’s agenda for its annual general meeting on Wednesday (September 29) were approved.
According to a regulatory filing that included the scrutinizers report of the postal ballot, the shareholders rejected the appointment of statutory auditors P B Vijayaraghavan and Co, Chartered Accountants, Chennai with 65.44 percent of the votes cast against the ordinary resolution.
With 65.44 percent of the vote against the resolution, they also rejected a request for the board of directors to be given the authority to select and set the compensation for branch auditors.
According to the statement, the bank’s shareholders did not approve Resolutions 3 or 4.
The necessary majority was obtained for the passage of Resolutions 1 and 2. Both of these dealt with the re-appointment of Gopinathan C. K. as a director and the adoption of the audited financial statements for the fiscal year that ended in March 2021, respectively.
The South-based institution stated in a separate report on the summary of the 94th AGM’s proceedings that G Subramonia Iyer, the bank’s part-time chairman, presided over the meeting via video conference (VC) from Mumbai.
P B Santhanakrishnan joined through VC from Chennai, among other places, and is a partner of P B Vijayaraghavan and Co, the bank’s statutory central auditors.
The meeting has been postponed for one month in accordance with the High Court of Kerala’s order from September 29, 2021, the chairman of the meeting also informed the shareholders.
The court case concerns two writ petitions that were submitted to the court by specific people who claimed that their directorship candidacy had not been presented to the bank’s shareholders at the AGM.
The High Court heard the writ petitions concurrently on September 28, 2021.
The bank was given a temporary restraining order by the court telling them not to end the AGM on September 29.
The ruling did not, however, prevent the bank from doing the business listed on the meeting’s agenda.
The High Court of Kerala further stated in its decision that the AGM shall be adjourned to a day after one month after conducting the business on the agenda.
In the current fiscal year’s second quarter, which concluded on June 30th, the private sector lender reported an increase in net profit of about 11.5% to Rs 6.79 crore. During Q1 FY22, total income decreased by more than 14% to Rs 239.02 crore.
As gross non-performing assets (NPAs or bad loans) increased to 9.27% of gross advances as of June 30, 2021, up from 6.89% a year earlier, its asset quality deteriorated.
Stock increased 0.94 percent to settle at Rs 16.10 per share on the BSE.
(Only the report’s headline and image may have been changed by the Business Standard team; all other material was likely created automatically from a syndicated feed.)