PFS initiates process to select new CEO to put behind corporate lapses
New Delhi: PTC India Financial Services Ltd (PFS) has initiated the process of selecting a new chief executive officer as the company leaves behind the past controversies over allegations of corporate governance lapses.
According to sources familiar with the matter, the selection process for the new MD and CEO is anticipated to be concluded by October 19, aligning with the superannuation of the incumbent chief Pawan Singh.
The company's management is committed to moving forward and embracing a new chapter at PTC India Financial Services Ltd (PFS). As it leaves behind the controversies of the past, PFS is seeking a new MD and CEO, who will lead it towards a more promising future, the sources said.
PFS, classified as an Infrastructure Finance Company (IFC) by the Reserve Bank of India, operates as a systemically important non-deposit-taking NBFC, promoted by PTC India Ltd.
In the wake of the resignation of three independent directors on January 19, 2022, citing concerns over corporate governance and compliance, followed by the departure of two more independent directors on December 2, 2022, PFS faced obstacles in meeting financial reporting obligations. Its parent company PTC India too was affected.
However, PFS recently announced robust financial results, reporting a net profit of Rs 36.41 crore for the quarter ending March 2023, a notable increase of nearly 46 per cent year-on-year. The company's net interest margin (NIM) rose to 4.35 per cent in Q4 of FY23, while its total income for the same period decreased to Rs 199.70 crore from Rs 231.35 crore in the preceding year.
For the entire fiscal 2022-23, PFS recorded a profit after tax (PAT) of Rs 175.81 crore, reflecting significant growth compared to the previous year's figure of Rs 129.98 crore.
With a focus on reestablishing stability, PFS has already appointed new independent directors, and most of the required committees, as per regulations, are in place.
Following the resignation of independent directors, PFS engaged an independent firm to conduct a forensic audit, culminating in the submission of the final Forensic Audit Report (FAR) on November 4, 2022.
In addition, the management enlisted the services of a professional firm to review the response provided in the FAR and the accompanying documents. The Board of Directors reviewed the forensic auditor's report during meetings held on November 7 and November 13, 2022, ultimately concluding that no material impact on the company's financials or instances of fraud or funds diversion were identified.
Currently, PFS is in communication with regulatory bodies such as Sebi, stock exchanges, the RBI and ROC to address the matters raised in the resignation letters.
During a meeting held on February 3, 2023, the Board of Directors reevaluated the findings of the forensic audit and reaffirmed the absence of any material impact on the company's financials or instances of fraud or funds diversion involving the company or its employees.