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Lodha may also be eased out of Indo Gulf Fert
BS Corporate Bureau in Mumbai |
August 06, 2004 09:04 IST
The Birlas have struck again. Close on the heels of the Aditya Birla group flagship Hindalco, Indo Gulf Fertilisers, also an AV Birla group company, is set to show the door to its statutory auditors, Lodha & Co.
This is seen as a fallout of the feud between the Birlas and the Lodhas over the controversial will of Priyamvada Birla, which purportedly bequeaths assets worth Rs 5,000 crore (Rs 50 billion) to R S Lodha, chairman of Lodha & Co.
Birla vs Lodha: War over a will
Indo Gulf on Thursday cancelled its annual general meeting slated to take place on Tuesday. The AGM was supposed to place an ordinary resolution before the shareholders pertaining to the re-appointment of Lodha & Co as statutory auditors.
The Aditya Birla group company said on Thursday the board would review its previous decision of reappointing Lodha.
"In order to enable the board to take a definite view in the matter, it has been decided to cancel the AGM to be convened on August 10," it said. Industry sources said the company would convene an annual general meeting after incorporating a new resolution on the appointment of fresh auditors.
Hindalco removed Lodha & Co as branch auditors last Saturday on the demand of the minority shareholders. Singhvi & Co, its statutory auditor, has been entrusted with the additional responsibilities.
Industry sources said that now it was clear that Lodha would receive the boot from all the companies of the Birlas -- B K Birla, S K Birla and Aditya Birla.
The B K Birla group made public that it would not retain Lodha its auditors. Two companies -- Mangalam Timber and Mangalam Cement -- have Lodha as auditors. Lodha may also be removed from S K Birla companies.
Grasim appears to be the only A V Birla company where Lodha is the auditor. It is widely believed that the company will convene an extraordinary general meeting to remove the auditor.
Indian Rayon, another Aditya Birla firm, has Harsh V Lodha as its director. Harsh V Lodha is the younger son of R S Lodha and supposed to receive the entire property of R S, two years after, as per the will.
S K Birla had told Business Standard: "After the purported will has surfaced, the Birla family has taken a decision to distance itself from the Lodhas."