Paul Walsh quits United Spirits boardBy Melita Kiely
United Spirits has experienced a disappointing start to the fiscal year reporting a net loss and sales drop in its first quarter, as director Paul Walsh announced he is to resign.
The firm reported a net loss of Rs 55.6 crore in the first quarter to June 2014 in comparison to last year’s net profit of Rs 118.13 crore over the same period, according to Business Standard.
Total income during the quarter fell 11% to Rs 1,924 crore compared to Rs 2,161 in the same quarter last year, while the operating profit declined 55% to Rs 151 crore this year compared to Rs337 crore in the same quarter last year.
Furthermore, United Spirits also said that former Diageo CEO Paul Walsh, who was appointed an additional director of United Spirits in August 2013, had resigned from its board of directors effective from 20 October.
Nicholas Bodo Blazquez, president Diageo Africa & Asia, will replace him, commencing on the same date.
Furthermore, the board of directors has approved reporting to the Board of Industrial and Financial Reconstruction (BIFR) company losses at the end of 2013-2014, which resulted in the erosion of more than 50% of the company’s peak net worth during the following four financial years.
As a result, the board approved an extraordinary general meting on or before 29 November this year under the provisions of Section 23 of the sick industrial companies (Special provisions) Act 1985.
The potential sale of the Malkajgiri division of the company was also approved.
Last month, it was reported three of United Spirits’ independent directors resigned as an inquiry into loans issued by the firm began.
At the beginning of October, Vijay Mally was re-elected as chairman of United Spirits.