The company employed independent external agencies to investigate the incident. The independent external agencies conducted a thorough investigation of the incident and submitted their report to the Board of Directors of the Company.

The incident resulted in a fraudulent transfer of funds of approximately Rs 52 crore. The amount involved in the above mentioned incident did not cross the quantitative thresholds of materiality as per the company’s policy on determination of materiality of events / information.

The incident did not occur due to any fraudulent act on part of any of the promoters, directors, key managerial personnel or any member of the senior management or any other employee of the company or its subsidiary.

Meanwhile, the company’s board appointed Nitin Agrawal as the chief financial officer (CFO) of the company effective from 1 February 2024.

Agarwal will take place of Rajesh Dubey as the current CFO, Rajesh Dubey will retire on 15 March, 2024.

Nitin Agrawal is a qualified chartered accountant and an MBA (one-year PGDM) from IIM Lucknow. He is an accomplished leader with rich experience spanning across Healthcare and FMCG. He brings with him close to 19 years of experience in senior global leadership roles across corporate finance, strategy, accounting, FP&A, business finance, governance, and investor relations.

Alkem Laboratories is engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs), and nutraceuticals.

The pharma major's consolidated net profit jumped 87.6% to Rs 620.52 crore on an 11.7% increase in net sales to Rs 3,440.17 crore in Q2 FY24 over Q2 FY23.

The scrip shed 0.71% to Rs 5014.45 on the BSE.