When the Britannia board sacked its high profile CEO and Managing Director Sunil Alagh, corporate India and the capital market were shocked. Institutional investors made some initial noises, but any sign of protest subsided, even before it began. The Cheques & Balances column this week (June 16) says why Alagh was sacked, we now give you the detailed reports that led to the board decision to sack him.
It has three sets of compilations. First, the friends he favoured at the expense of Birtannia, which is referred to as "related party transactions". Secondly, the events he fudged to claim compensation and thirdly, some sordid details about how reimbursement was claimed on expenses by his daughter and wife.
We start with an account of fictitious conferences:
"There are three instances where Mr.Alagh has asked us to clear bills on account of sales promotion where the actual purpose for which the expenditure incurred was different"
Sales Conferences for 130 people in the month of May'98 at Windsor Manor Sheraton. (There Was no sales conference that took place and the bill was for personal party busted by Mr. S. K. Alagh on the occasion of Ms. Kiran Shaw's marriage.)
Distributors meet and dinner to commemorate with the successful lunch of Good Day Choco Chips in Karnataka and Kerala. An amount of Rs. 350/- per hand plus taxes for 310 guests was paid to Royal Orchids Hotel. (There was no distributor conference on either occasion and amount was given to the hotel under Mr. S. K. Alagh's introduction ostensibly for Mr. R. V. Deshpande, current Minister for Industries, Govt. of Karnataka).
Sponsorship of Cheese and Cracker Party (There was an Cheese and Cracker party but this was on account of a birthday bash that Mr. Alagh had the Mela restaurant).