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Britannia picks Alagh's Rs 1 crore tab
Reeba Zachariah in Mumbai | July 17, 2003 08:17 IST
Last Updated: July 17, 2003 08:26 IST
It's finally official. The amount for which former Britannia managing director Sunil Alagh lost his job is Rs 1.02 crore (Rs 10.2 million), marginally less than the total annual salary of Rs 1.09 crore (Rs 10.9 million) paid to him last year.
Alagh was asked to quit by the Britannia board last month for alleged misuse of company funds for his personal use.
Britannia chairman Nusli Wadia, on behalf of the board, notes in the annual report: "Based on a review of facts and documentary material placed before the board and what emerged therefrom, the directors were unanimously of the opinion that Alagh, as managing director, had conducted himself in a manner clearly incompatible and inconsistent with the duties and responsibilities he owed as MD of a public limited company to the board and shareholders of the company, that he had breached the trust and confidence which, in good faith had over the years been reposed in him both by the chairman and the board of directors."
The acts in question have been referred to in the auditors' report in general terms, without getting into the specifics.
"During the course of our audit, we have been informed by the board of directors that certain expenditure of a personal nature, incurred by or at the behest of the erstwhile managing director and his relatives/related parties, which have not been charged to the profit and loss account but debited to a recoverable account..."
The items of expenditure are further specifically listed in the schedule of unsecured loans and advances as "(an) amount of Rs 1.0195 crore (previous year: nil) being expenditure incurred by or at the behest of the erstwhile managing director and his relatives/related parties, pending reconciliation/clarification."
Further, in the notes to the accounts Britannia listed four relatives. They are Maya Alagh, Anjori Alagh, Kewal Krishan Alagh and Pratap Rani Alagh.
Wadia, in alliance with Groupe Danone, the French dairy foods giant, holds a stake of over 45 per cent in Britannia.
Senior Wadia group sources told Business Standard: "The independent report from CC Chokshi & Co is expected to be tabled within the next two months."
Alagh's services were terminated last month, nine months before his contract was due to end in February 2004.