Shares of leading rice exporter KRBL Ltd. nosedived on Monday, September 15, slipping over 8% to ₹406 apiece on the NSE, after Independent Director Anil Kumar Chaudhary resigned from the company’s board, flagging serious concerns around corporate governance.
In his resignation letter, Chaudhary stated that the present board dynamics were inconsistent with principles of effective governance and independent oversight, which are key to safeguarding stakeholder interests. His decision triggered investor concerns, leading to a sharp sell-off in the counter.
Issues raised in the resignation letter
Chaudhary listed several red flags in his letter to the board, including:
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Inconsistencies in recording of board and committee meeting minutes.
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Instances of information being withheld, impacting informed decision-making.
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Unjust write-offs of certain export receivables without adequate deliberation.
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Concerns over the utilisation of CSR funds.
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Arbitrary distribution of variable pay and annual increments to individuals holding office or place of profit.
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Significant changes to the Object Clause of the company, allegedly without comprehensive discussion.
The resignation has cast a spotlight on KRBL’s governance practices, with investors questioning transparency and accountability at the top level.
At 9:07 AM IST, KRBL shares were trading at ₹406, down 8.58% (–₹38.10) intraday, making it one of the worst performers in Monday’s session.
Market watchers say while KRBL is a key name in India’s rice export story, governance-related concerns could weigh on sentiment in the near term.
