MCFL to take legal advise from Ernst & Young

MCFL to take legal advise from Ernst & Young

MCFL to take legal advise from Ernst & Young

Mangalore Chemicals and Fertilisers (MCFL) has decided to take legal advise from Ernst & Young on some irregularities and mismanagement related to investments and advances made in Vijay Mallya promoted companies.

Pursuant to the directions of the audit committee at its meeting held on March 9, 2016, the company had engaged Ernst & Young to carry out forensic investigation into investments of Rs 200 crore into Bangalore Beverages by way of subscription to its preference shares and various advances made by the company to United Breweries Holdings of which a sum of Rs 16.68 crore is outstanding as of March 31, 2016, MCFL said in a release to the exchanges.

Upon completion of its investigations, Ernst & Young has made a presentation to the board of directors at its meeting held on May 6 to the effect that the aforesaid transations may have involved irregularities and elements of mismanagement in the company, MCFL said.

The company is taking necessary legal advice in connection with the findings of Ernst & Young, MCFL added.

MCFL was promoted by Vijay Mallya but was taken over by Saroj Kumar Poddar-controlled firm Zuari Fertilisers and Chemicals last year following an intense takeover battle with Deepak Fertilisers.

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