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KRBL Limited shares fell 13 percent after Anil Kumar Chaudhary resigned as Independent Director citing ethical concerns and board issues.

KRBL Share Price: Rice processing and exporting company, KRBL Limited’s shares nosedived 13 per cent intraday on Monday, September 15, following the resignation of Independent Director (Anil Kumar Chaudhary) on the Board of KRBL Limited.

“After careful thought and consideration, I have concluded that I am no longer able to meaningfully contribute to the Board’s functioning in the manner envisioned under the regulatory framework for independent directors," Chaudhary said in the resignation letter as shared in the company’s filing.

Chaudhary, in his resignation letter, highlighted certain issues that have persisted despite his earnest efforts to address them through constructive dialogue and continue to pose professional and ethical dilemmas.

Chaudhary pointed out some of the persisting issues he has with the board members:

Inconsistencies in the recording of Minutes of the Board and Committee Meetings

Instances of information being withheld, impacting informed decision-making

Unjust write-off of certain export receivables without adequate deliberation

Concerns regarding the use of CSR funds

Arbitrary distribution of Variable Pay and Annual Increments to Persons Holding Office or Place of Profit

Significant changes to the Object Clause undertaken without comprehensive discussion

Undue interference by the invitees in the proceedings of the Board and Committee Meetings

Chaudhary raised these matters whenever appropriate, hoping for resolution in the interest of the company and its stakeholders.  “In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes," Chaudhary added in the resignation letter.

Shares of KRBL Limited were trading at Rs 397.55 per share with a drop of 10.71 per cent. The stock saw a gap-down opening at Rs 401.35 per share against the previous close of Rs 444.10 per share. The stock’s 52-week movement indicates a high of Rs 495 per share and a low of Rs 225.70 per share.

KRBL Limited is a smallcap firm with a market cap of Rs 9,059 crore (as of September 15).

Source : news18