The stock exchange has sought clarification from the company for a series of violations against the Listing Agreement
It is reliably learnt that the Bombay Stock Exchange (BSE) has found multimedia and animation company Compact Disc India non-compliant with several provisions of Clause 49 of the SEBI Listing Agreement. It has sought clarification and explanation from the company on this matter.
Apparently, the stock exchange has observed that the company has only a single independent director out of a total of three directors and is thus non-compliant with the requirements under Clause 49 (i) (a) of the Listing Agreement. As per the guidelines, at least 50% of the company’s board should be independent directors.
Further, the company has also failed to constitute its audit committee under clause 49(ii) (a) as per which two-thirds of the members should be independent directors.
The company has also failed to appoint an independent director as chairman of the shareholders-investors grievance committee and has thus also failed to comply with requirements under Clause 49(4) (g).
BSE has also observed that the company has actually reported compliance with the above clauses as per its disclosure dated 15 April 2010 as well as in earlier quarters.
Sources close to the development confirm that BSE has not yet received six copies of the annual report for the year ended March 2009 as per Clause 31 (a).
Meanwhile, in a letter to Moneylife, the company has clarified that the $82-million deal announced by the company for working on an animation film on Adolf Hitler was never announced with BBC Films. Apparently, this film assignment was given by a yet unnamed UK-based production house. As per its website, the deal with BBC Films was to co-produce another film titled ‘Blame it on the Bhangra’.
The company has also stated that all details regarding the annual general meeting (AGM) were communicated to the BSE and through leading newspapers well in advance. Also, regarding our comment that the company promoters may be attempting to drive up the share price of its stock, the company clarified that “Since 1993, the management never manipulated the company’s shares.”