Pidilite unearths internal fraud
JULY-2012 – Pidilite Industries informed the stock exchanges that it has unearthed a fraud committed by its employee. Makers of the Fevicol brand of glue, however, did not disclose the magnitude of the scam. According to a statement to the exchanges, “the internal audit process of Pidilite Industries has unearthed a misappropriation by which commercial quantities of goods from a particular warehouse were described as free samples and removed by one (or possibly more) employee. These goods were then intercepted and stolen before reaching the destination.’’ A full investigation and action has been initiated under applicable provisions of law against the employee, it said. The company, however, said that it will not have any financial implications. “The nature of the misappropriation was such that its impact has already been reflected in the company’s financial results and consequently no item of loss is expected to be charged in the company’s financials at all. Neither is the quantum detected significant enough to have a material impact upon future operations and profitability of the company.’’ The stock was trading flat at Rs. 161 at 11.45 a.m.
Friday, March 1, 2013