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Gensol Engineering's independent director Arun Menon resigns, decision taken after SEBI's action
Gensol Engineering: Gensol Engineering's independent director Arun Menon has resigned. He has taken this step after SEBI's action on the company. Let us know about this in detail.
Independent director of Gensol Engineering, Arun Menon, has resigned. According to him, the utilization of the balance sheet for other companies' capital expenditure and the high cost of debt are causing doubts regarding the stability of the service.
Menon's resignation comes at a time when, a day earlier on Tuesday, SEBI had banned Gensol Engineering and its promoters - Anmol Singh Jaggi and Punit Singh Jaggi - from the securities market till further orders in the fund diversion and governance lapse case.
In his resignation letter addressed to Anmol Singh Jaggi, one of the company's promoters, Menon said, "There were growing concerns over the leverage of GEL's balance sheet to fund capital expenditure of other businesses and GEL's sustainability of servicing such high debt costs."
