Business & Investment

India investigates that Carlsberg’s account claims to be inappropriate: Report

Following allegations of potential fraud, the Government of India is inspecting the books of Carlsberg A / S’s local units, according to people with knowledge of the matter.

Registrar Issued a notice to People said they were preparing to summon the board soon, calling for a response, and demanded that the details not be identified as they were private.Resigned as Auditor of PricewaterhouseCoopers LLP- In November, after a conference room dispute at the brewery spilled into bookkeeping-then complained to the Ministry of Internal Affairs and Communications, people said.

In 2019, Carlsberg’s joint venture partner, Nepal-based Khetan Group, wrote to India’s Ministry of Internal Affairs and Communications: People said they offered illegal trade discounts and engaged in potentially fraudulent practices for promotional purposes. They added that the board has not resolved the dispute, prompting PwC’s complaints and the Indian government’s investigation.

A Carlsberg representative said in an email that disagreements between Carlsberg India’s boards were the main reason for the auditor’s denial of opinion. He added that the complaints filed by the joint venture partners in 2019 and 2020 ended last year without sanctions against Carlsberg India.

“We continue to have a difficult dispute with our Indian JV partners,” Carlsberg said. “The dispute is expected to escalate for some time as the partner still owes Carlsberg $ 43 million and wants to sell its business share in advance at a completely unreasonable price.”

The representative of the Khetan Group declined to comment.Spokesman I declined to comment. There was no reply to the email to PwC.

Carlsberg’s Sustainability Report 2020 found evidence of potential unethical practices in Indian units in 2019 and 2020 surveys, but acted for the personal benefit of Carlsberg employees. I disclosed that no evidence was found. Another internal investigation in 2018 identified minor workers in a third-party-operated warehouse. According to Carlsberg, the deal has expired.

Directors nominated by JV partners who did not cooperate in the investigation did not want to resign, and the Khetan Group added that they did not want to replace him, even though the board passed a “distrust resolution.” ..

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India investigates that Carlsberg’s account claims to be inappropriate: Report

https://www.business-standard.com/article/companies/india-inspects-carlsberg-accounts-for-alleged-impropriety-report-121071300867_1.html India investigates that Carlsberg’s account claims to be inappropriate: Report

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