The year FY 2020 is a milestone year for UPL Ltd, it marks its 50th anniversary but then apparently the major agrochemicals firm is now in the news for all the incorrect causes. Its promoters named for an investor/analyst meeting on Thursday, December 10th evening to deny as false allegations of any incorrect performing. This follows reports in the media quoting a whistle-blower alleging fund diversion by the promoters. During the day, the UPL stock took a significant hit, slipping by 15 per cent immediately after opening the day at Rs 479 and lastly closing at Rs 416, down 10.94 per cent.
While queries of corporate governance are severe and though the firm may perhaps deny it, it is for the regulatory authorities to investigate any incorrect performing, if any, and if identified, take acceptable actions. However, it may perhaps assist our readers to know a bit about the firm that appears to have expanded very quickly. Afterall, it sees itself as a behemoth in the important location of crop protection options.
Consider this: it was only in 1994 it initially embarked on its international acquisition and considering that then has created some 40 acquisitions. The 1 it is most proud of is the 1 in FY 2019 to obtain a firm Arysta LifeSciences in an all-money deal worth $ 4.2 billion. With this beneath its belt, it sees itself emerge as the world’s fifth biggest crop protection options firm in the planet with sales of US $ 5 billion in FY2020.
But it not just the 40 acquisitions, the firm runs what may perhaps look a rather complicated structure with some 225 subsidiaries. That for a firm which started in 1969 out of the then smaller town of Vapi in Gujarat generating red phosphorus, is a extended journey of aggressive development.
The firm has some marquee names on its board and on its crucial board committees. For instance, Pradeep Goyal, an engineer by instruction (a B.Tech in Metallurgy from IIT Kanpur) and recognized to some as the brother of Union minister Piyush Goyal, is a member of the audit committee. Then, there is Arun Aishar, the director finance, is a chartered accountant and a member of the Institute of Chartered Accountants of India.
Crucial maybe considering that the firm talks of a consolidated topline for 2019-20 of Rs 35,860 crore, a profit ahead of tax of Rs 2,764 crore and a profit immediately after tax of Rs 2,178 crore, which suggests Rs 568 crore in tax.
The notes to the consolidated monetary statements even so spell out the remuneration of the individuals at the helm. It says that as of March 31, 2020 it was Rs 12 crore for Rajnikant D Shroff, the chairman and managing director, Rs 57 crore for Jaidev R Shroff, the worldwide CEO of the group apart from Rs 28 crore for Vikram Shroff, a non-executive, non-independent director and Rs 9 crore for Sandra R Shroff, also a non-executive, non-independent director.