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Updated on: Saturday, October 02, 2021, 05:55 PM IST

Kinetic Engineering clarifies rejection of proposal by shareholders to raise MD's salary

PTI
In a regulatory filing, the company said the votes of one of the major shareholders, Jinendra Munot, who is also a board member were wrongly recorded

In a regulatory filing, the company said the votes of one of the major shareholders, Jinendra Munot, who is also a board member were wrongly recorded "due to a technical glitch during his online voting / Rerpesentational image |

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Pune-based Kinetic Engineering Ltd on Saturday clarified that the rejection by shareholders of a proposal to increase remuneration of its Managing Director Ajinkya A Firodia through e-voting in the recently concluded annual general meeting was due to a technical glitch.

In a regulatory filing, the company said the votes of one of the major shareholders, Jinendra Munot, who is also a board member were wrongly recorded "due to a technical glitch during his online voting that incorrectly or inadvertently took his voting as negative instead of positive, which was his intention".

On Wednesday, the company had informed BSE that its shareholders have rejected the proposal to increase the remuneration of Firodia. As per the filing, the special resolution for approval on remuneration payable to his was declined by the shareholders with 62.04 per cent votes against it and 37.95 per cent in favour.

However, in its filing on Saturday, Kinetic Engineering Ltd (KEL) said it was "faced with a sudden unexpected surprise, as the resolution results came negative in the ratio of 5,870:3,591 shares. After due analysis it was found that one of the major shareholders Jinendra Munot, who also happens to be a board member of the company had 5,136/5,870 negative votes..."

"...it was due to a technical glitch during his online voting that incorrectly or inadvertently took his voting as negative instead of positive, which was his intention," the filing said.

Clarifying on the situation, Munot said during the e-voting period of which began on September 25, 2021 he had already voted in favour of the resolutions during the board meeting, as well during the e-voting.

"It seems that my 5,136 casted vote against a resolution number 3 that is approval of remuneration of managing director on September 27, 2021 has been recorded as negative due to technical error or glitch, and I would like to reaffirm my support for the same. I regret any inconvenience that may have been caused due to the same," the filing said quoting Munot.

Stating that the management was "shocked to see the results of the e-voting", KEL representative PC Jain said, "Actually 61.39 lakh positive shares vote was not counted by the auditor since they were from a related party to the Managing Director."

Moreover, Jain said Munot's votes inadvertently came negative as is clarified by him.

"Also, several shareholders were not able to cast their votes during e-voting period due to various technical issues in the site. I have asked the concerned agencies to take care of such situations," he added.

Stating that Firodia has worked tirelessly for the past 12 years in the company, Jain said due to his leadership and efforts the company had turned around in the last two quarters.

"The objective of the management has always been ''company first'' and has left no stone unturned to ensure its success, so we were really surprised by this resolution," Jain said.

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Published on: Saturday, October 02, 2021, 05:55 PM IST
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