Outcome of the comprehensive independent review following the unauthorised loan
Further to the previous announcements dated 10 and 16 October 2017, the Independent Members of the Board of Mytrah are now in a position to provide an update on the results of the comprehensive independent review undertaken following the unauthorised loan to Mr Ravi Kailas, the Company’s Chairman (which was repaid in full with interest). The review was undertaken by a firm of international lawyers with additional work by a ‘big four’ firm of auditors.
The principal conclusions and recommendations are summarised below.
The principal conclusions of the review are as follows:
· The Company did have policies in place to prevent the unauthorised loan, notably a schedule of matters reserved for the Board and requiring Board approval (“Reserved Matters”), as well as limits and requirements in its Articles of Association (“Articles”).
· However, a lack of awareness amongst certain members of senior management and the Board of the Reserved Matters and the Articles was identified.
· Certain weaknesses in the Company’s payment processes were also identified.
· No evidence was found of any prior incidence of any similar unauthorised payments.
The principal recommendations resulting from the review are as follows:
· The Company’s payment processes are required to be improved and better documented; a number of detailed recommendations have been made in this regard.
· Senior management and Board roles and responsibilities in the payment processes are to be more clearly defined and fully documented; this work is already underway.
· Appropriate further senior management and Board training should be undertaken with regard to the payment processes, as well as the Reserved Matters and the Articles more generally.
The Board accepts all of the above conclusions and recommendations and will take steps to implement them as soon as practical. The Company is also considering adding the CEO and CFO to the Board in light of the review.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please visit www.mytrah.com
About Mytrah Energy Limited
Mytrah Energy Limited is a renewable power producer listed on the AIM market of the London Stock Exchange. The Company is one of the largest Independent Power Producers of the Indian renewable energy sector and a pioneer in this space. Mytrah has a portfolio of 2000MW of operational and under development renewable power projects across 9 Indian states (Punjab, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu). Mytrah also has one of the largest wind data banks in India. It is the only independent power producer with over 200 wind mast locations across the country.
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