Maruti Suzuki is reportedly investigating allegations of wrongdoing by some company executives from the purchase department. The investigations come amid allegations by a whistleblower. As per reports, KPMG has been hired to conduct a forensic audit.
The allegations revolve around the executives providing benefits worth crores of rupees to vendors and supply partners by sourcing parts from them at an inflated cost, according to a report in The Economic Times. The company is yet to make a statement on this, while KPMG refrained from commenting on ‘company-specific matters’.
A person in the know told the daily that the third party independent forensic investigation will probe activity records of those under scrutiny. The company is also incorporating all legal procedures to this end. The concerned employees will also be given an opportunity to present their case. However, if required, the company will take strict action.
The company has taken possession of laptops and phones of the individuals under investigation. Since none of the executives are part of the key management, the company will not need to make a disclosure to the stock exchanges.
The report stated that Maruti buys 95 per cent of the raw material by value from suppliers with manufacturing plants in India. Most – 84 per cent – of suppliers have manufacturing units within 100 km from Maruti plants. The company incurred cost material expense of Rs 65,892 crore as against Rs 50,744 crore a year ago.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today