From left to right: Atul, Sanjay, and Rahul Kirloskar.
Kirloskar Brothers Ltd has called for an extraordinary general meeting of its shareholders on December 8, 2022 to consider and approve forensic audit of the affairs of the company by an external agency, according to a regulatory filing.
It follows requisition by Kirloskar Industries Ltd (KIL) along with Atul Kirloskar and Rahul Kirloskar, who together hold 24.92 per cent in Kirloskar Brothers Ltd (KBL).
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Amid the simmering feud between Kirloskar siblings, with Kirloskar Brothers Ltd (KBL) Chairman and Managing Director Sanjay Kirloskar on one side and Atul and Rahul on the other, the company said the EGM would take up for resolution the appointment of an independent forensic auditor to investigate affairs of the company.
In a regulatory filing, KBL said the EGM (extraordinary general meeting) “at the requisition of Kirloskar Industries Ltd along with Atul Kirloskar and Rahul Kirloskar, collectively holding more than one-tenth of the paid-up share capital of the company” will be held on December 8, 2022 at 2 pm via video conferencing or other audio-visual means.
The EGM will consider an ordinary resolution of the appointment of an independent forensic auditor for conducting a forensic audit to investigate and verify the expenses incurred by KBL on legal, professional consultancy charges over the past six years and the affairs of the company.
The investigation would verify all records, books of accounts, minutes books, and other documents of the company.
Moreover, it would examine the conduct of the board of directors, including independent directors, the filing added.
In October Kirloskar Industries Ltd (KIL) along with Atul and Rahul Kirloskar, had sought convening of an extraordinary general meeting of shareholders of KBL seeking a forensic audit of the affairs of the latter by an external agency.
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They had demanded that being a listed entity KBL should justify the rationale and basis on which it has been spending huge amounts aggregating to approximately Rs 274 crore towards payment of professional illegal expenses and consultancy charges ever since their dispute arose since on or about 2016.
In its rebuttal, KBL had said the legal fees over the last seven years were approximately Rs 70 crore, while a “major portion of the said Rs 274 crore is professional fees paid to various Indian and overseas reputed consultants to improve the company’s business.
On October 15, after being cleared of insider trading charges labelled against them by the Securities Appellate Tribunal (SAT), Rahul and Atul had raised questions over corporate governance of KBL. They were accused of insider trading when they sold shares of KBL to KIL back in 2010.
They had accused KBL of “mis-utilising shareholder resources of a publicly listed company and misusing regulatory machinery” in the personal dispute of its Chairman & Managing Director Sanjay Kirloskar.
Rahul Kirloskar is the executive chairman of Kirloskar Pneumatic Co Ltd, Atul Kirloskar is the executive chairman of Kirloskar Oil Engines Ltd.
The Kirloskar brothers have been in a feud since 2016 over the deed of family settlement for the assets of the more than 130-year-old Kirloskar group.
