Kirloskar Brothers shareholders to start voting on forensic audit today

Shareholders of Kirloskar Brothers will begin voting from Tuesday on a resolution seeking a forensic audit of the company as requested by Kirloskar Industries — one of KBL’S key shareholders.

In a statement, Kirloskar Industries said as the largest minority shareholder of KBL, it was its duty to make the KBL Board accountable to all stakeholders rather than allowing KBL to be run as a “personal fiefdom” of its chairman and managing director. KBL is chaired by Sanjay Kirloskar while Kirloskar Industries is run by his brothers, Atul and Rahul. KIL sought a shareholders’ meeting seeking a forensic audit of the company over the ~70-crore legal fees. The EGM will be held on December 8. “There are several disputes between Sanjay Kirloskar and the rest of the members of the Kirloskar family. We have observed that KBL is a party in most of the cases filed in these disputes. In fact, in an appeal by KBL before the Securities Appellate Tribunal against an order passed by Sebi, the regulator’s view is that KBL has been filing dressed up proceedings to agitate/ventilate private family disputes which is perceived by the regulator as an abuse of the process of law. Upholding Sebi’s order, the SAT has dismissed KBL’S appeal,” KIL’S managing director, Mahesh Chabbria said in a news conference.

While Kirloskar Brothers did not comment, a spokesperson said on November 16, KBL stated the bulk of the ~70-crore legal expenses incurred by the company were related to tax, labour matters, arbitration and are unconnected to with the litigations going on with the requisitionists of the EGM. None of the shareholders, including Atul and Rahul, voted against the company’s accounts till August this year, the KBL statement said.