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Would VSNL M.D. give an explanation to shareholders???

July 8, 2007

Mr. Narsimhan Srinath…You owe an explanation to VSNL shareholders…

  • You were appointed Managing Director of VSNL on February 2nd, 2007, for which a board meeting was called specially. You would agree that a board meet would cost the company close to Rs. 25 lakh including the executive Time Costs.
  • Why was your appointment not cleared in the board meeting a mere 72 hours prior, when the Board met to finalise the Quarterly results????Could this ten minute formality not be completed that day???
  •  Can u pls explain how you suddenly remembered on January 31st, 2007 that your foreign exchange travel advances for over 15 months and 25 occassions had a discrepency? How come after such a long period of time?
  • Can u pls tell us why your vigilance officer Dhirendra Kumar Sinha did not conduct an inquiry – independently- prior to filing a FIR against your PA for misappropraition of funds?
  • Why was the FIR filed on January 1st evening, hours before your appointment as MD? Why did you not allow them time to do a complete investigation instead of putting the entire blame on your PA?
  • The events between January 30th to February 2nd were indeed interesting…You regain your lost memory or shunned your ignorance for 15 months….Your PA is blamed for the misappropriations of forex advances issued in your name…Your PA gets arrested…and you become Managing Director….Eventful Indeed…
  • Were you sleeping for last 15 months??? Did the finance and accounts department of VSNL did not have courage to ask you to clear the dues, which was the rightful property of the company…Is it not a total lapse of your internal financial controls….Internal Financial Controls for which you and your CFO are responsible and accountable…
  • Even if one considers you were actually oblivious of the dues in your busy schedule, is it not NEGLIGENCE…and with a MD who cant even ensure clearance of his personal travel advances on time, can this $2 Bn company be safe???
  • Ask your concious…With such negligent attitude, do you have the courage to face your shareholders at the forthcoming AGM? Whose Moral responsibility is It? Take your calls….
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VSNL Corporate Governance..or MisGovernance

July 8, 2007

This is the story of Corporate Governance at VSNL, a Tata Group Managed Company. One needs to check the facts and then form an opinion, even though the author has verified facts before giving independent views, without Malice towards anyone…

As per a statement given to Mumbai Police by VSNL’s Vigilance Officer, on basis of which a FIR was registered, that VSNL’s current M.D.’s Foreign travel advances for 15 months were being embezzled by his P.A., totalling to $ 19,000=00 over 25 occassions.

Incidentally, VSNL’s current M.D. Narsimhan Srinath, in the last Annual Report stated that its his responsibility to establish and mantain financial controls. The statement to VSNL’s shareholders were co-signed by the CFO Rajiv Dhar. However, the internal controls failed only with respect to Narsimhan Srinath, to whom forex advances were continually issued inspite of as many as 5 quarterly audits during the 15 month period.

What were the Internal Financial Controls? How Did they Fail?

The results would be known once Department of Company Affairs and SEBI finish their probe….

This points out to the relative Corporate Governance Guidelines followed by many corporates…The Ethics and Corp Gov guidelines only apply till a level. Noone dares to check with MD as to why advances issued to him by the company keep pending for as many as 15 months….

 Only Narsimhan Srinath or Rajiv Dhar can explain… And they ought to going by their own statement to all shareholders.
 

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July 8, 2007

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