NEW DELHI, April 5: Swiss multinational, Nestle SA has ordered an "international auditing" of its Indian subsidiary, which has been mired in a controversy of alleged financial irregularities, and insider trading.Auditing is being conducted by KPMG officials from London and Switzerland in close cooperation with officials of the parent company, following reports of overstatement of profits for the financial year 1997, company sources said.
On March 17 this year, Nestle announced its financial results for 1997 wherein it stated that its net profits zoomed 41 per cent to Rs 74.3 crore, much over market expectations.
Due to allegations of financial mismanagement, Nestle India Managing Director Daraius Ardeshir resigned on April 1 and Rajendra Singh was appointed to the post temporarily.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
