"Actions taken included disciplinary measures for implicated employees still at the company, and strengthening of compliance and internal controls," the Danish brewer said, adding that the audit was being conducted under the supervision of Carlsberg Group’s global integrity committee.
"In addition, we conducted an India wide internal audit of the process for obtaining permits and licences. This showed a clear improvement in behaviour over time, as well as identifying opportunities to further strengthen controls."
The maker of Tuborg also clarified it had also identified a case involving underage labourers and non-compliant working conditions in a warehouse operated by a third party and terminated their contract in 2018.
Carlsberg, that entered the Indian market in 2006 through a joint venture with Nepal-based Khetan Group, is engaged in a commercial conflict with the partner. Last year, ET reported that Carlsberg has been fighting with its partner about the repayment of a $43 million loan and their JV exit price. This is also reflected in their annual filings of the last two financials.
Three board members of Carlsberg’s Indian unit voted not to approve the latest accounts of FY20, citing lack of clarity on these matters. This is the second financial year where directors have refused to approve the results. Carlsberg declined to comment on the issue.
"The auditor has not issued an opinion primarily because there is a divergence of opinion of the board of directors concerning the financials. Despite, the vigilance mechanism put in place, there exist dissenting directors who question the veracity of the financials put before them," said Mohit Yadav, founder of business intelligence firm AltInfo, which analysed the RoC filings.
"There have been other non-compliances as well, such as those relating to provident fund, which in usual circumstances would not have prevented the auditor from issuing an opinion albeit with adverse remarks."
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9 Comments on this Story
Kiran Kumar Kanchibhotla5 days ago
Similarly it will be interesting to probe which are the big companies that benefited from the laws broken by Amazon's indian arm.
Kali Prasad Chinam5 days ago
Breweries in HP, RJ, MH and WB. JV partner from Nepal. Quite a concoction.
Venkatesh Ganesh5 days ago
Alcohol sales is a state subject, contrary to some ignorant comments so far. State Govts are notoriously corrupt in comparison with central Govt, and Excise dept is a huge money spinner. It is impossible to operate in India without bribing these folks, and companies resort to using 3rd parties as middlemen who could do it easily and dress it up as some expense. State Govts use these depts to make money for political masters, so nothing can be done about this