Four listed firms of the Kishiore Biyani-led Future Group on Tuesday expressed their inability to convene a board meeting before May 30 to approve their financial results for the quarter and year ended March 31 on account of vacant positions on their respective boards.
In the last two months, Future Retail Ltd (FRL), the flagship firm of the debt-ridden Future Group, witnessed several top-level exits after its Rs 24,713-crore deal with Reliance Retail was called off.
Earlier this month, FRL’s Chief Financial Officer C P Toshniwal and Company Secretary Virendra Samani had resigned from the company. Its Managing Director Rakesh Biyani had also stepped down this month. While at Future Lifestyle Fashion Ltd (FLFL), its Chairperson Shailesh Haribhakti had put in his papers.
“Pursuant to cessation/resignation of a few Directors in recent past, the composition and structure of the Board of Directors and Audit Committee of the Company has become imbalanced and not in compliance with the provisions of the Companies Act, 2013 and the SEBI Regulations, 2015,” the Future Group firms said in their regulatory filings.
Although the companies have been taking necessary actions to fill the vacancies caused by such resignations, the present structure of the Board of Directors and the Audit Committee “would not be competent to approve the audited financial results” for the quarter and fiscal year ended March 31, 2022.
“In view of the above, Meetings of Board of Directors and Audit Committee to approve the captioned financial results would not be possible to be convened and held before May 30, 2022,” the filings said.
In April, Future Enterprises Ltd’s two independent directors Anand Chndrasekaran and Malini Chopra had resigned.
As per Securities and Exchange Board of India (SEBI) norms, companies are required to file their quarterly results within 45 days from the end of the quarter, and in case of annual financial results, within 60 days from the end of the financial year.
As per this timeframe, companies have to file their quarterly and annual results by May 15 and May 30 respectively. The Future Group companies said they would announce the results as early as possible.
FRL is facing an insolvency petition filed by its lenders before the National Company Law Tribunal (NCLT) as it has committed defaults.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)