Asian Paints shares trade in the red as promoters under fire again for related party transactions

Cat Asia shares traded in red on Thursday after the paint maker made the headlines again for related party transactions.

At 9:16 a.m., Asia Cat shares traded 0.2 percent lower at Rs 3.154 on BSE.
A media report said that Dani’s family, Asian Cat promoter, had arrived under the fire from the Ingovern Proxy Advisory Firm. The company shows several related party transactions between Paint Asia and Paladin Paints & Chemicals, a private company owned by Dani.
Ingovern was reported to highlight the possible conflict of interest involving the entity controlled by Dani, which also supplied raw materials to paint producers.
Other reports say that Ingovern has sought the removal of the Asian Ashwin Dani Cat promoter and his son Malaav Dani from the Board amid allegations of related party transactions.

As the price of Hike Cat Asia, this is what the broker said
This development came after the report a month ago claimed, a reporter had written to Sebi who was alleged that Dani had enriched themselves with the cost of Cat Asia’s shareholders.
Whistle-Blower told me that the money to buy a company called Paladin Paints & Chemicals changed from Asian paint but the promoter of Ashwin Dani and Son Malaav now controlled it in their personal capacity.
Responding to this, the painter maker has then clarified that “the complaint was investigated in accordance with the company whistle policy, and after conducting detailed reviews about the transactions mentioned in it, the complaint was closed when the investigation was concluded that the transaction was carried out in accordance with the law, and there was no basis for accusations made “.
Subramanam Shriram, Founder and Managing Director in Ingovern, said that “We only say that related party transactions are not explained in detail by the company. The company has come out and said that Paladin only made RS 1.2 Crore transactions or Rs 2 Crore, but the fact that the company now Must get out of what they have done in the annual report means that Cat Asia is lacking in disclosure “.
“More than Rs 500, the value of goods is obtained from the promoter-related entity. Shareholders do not know whose entities and what is logic, why does the Asian paint carry out almost 6 percent of the raw materials obtained from the promoter’s entity.? That’s what we asked . Rs 1.3 crore is with Paladin. Transactions related party overall is Rs 500 crore. in the end, we had a cat Asia with a higher standard, the fact that most other companies reveal the line-by-line the relevant parties which, what is the value of the contract and what What is done by logic – what is done by most other companies, why does Asia paint do not do? We only say that this conflict is there, “he said.
Subramaniam added, “and the fact that most other companies reveal valuesize in every bill – see all Nifty50 companies, the majority of companies do it. So from that perspective, we hold Asian paint with a higher standard”.