Spandana Sphoorty-Reddy settlement clears way for announcing FY22 results

The settlement of disputes between Spandana Sphoorty Financial Ltd’s (SSFL) board and Padmaja Reddy, its erstwhile managing director, has paved the way for the micro finance institution to announce audited results for FY22 before June 30, 2022. It had delayed the declaration of results pending an agreement between the board and Reddy.

The company and Reddy have resolved their differences and have agreed to part ways on amicable terms. The Board of Directors of the company and its subsidiaries (i.e. Criss Financial Ltd and Caspian Financial Services Ltd) on June 21, 2022 approved the Settlement Agreement and the same has been entered into between the company and the erstwhile MD of the company, Padmaja Reddy, Spandana informed BSE.

The company's stock was trading 17.45 per cent higher at Rs 391.30 per share on the bourse.

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Some of the issues to be addressed through settlement include payment of dues and clearing related party transactions.

Padmaja Reddy resigned from her position as the managing director of the company on November 2, 2021. Subsequently, certain disputes arose between Reddy and the board.

On May 30, SSFL said this settlement will include a reconciliation of all historical matters. These were to be verified and validated as part of the finalisation procedures for the full‐year accounts. It had indicated to release its annual audited financial results no later than June 30, 2022. The company expects results to be largely in line with its unaudited figures.

SFFL said While Reddy was no longer serving as the managing director, she continued to be a substantial shareholder and member of the company’s Board. Reddy continues to remain a well-wisher of Spandana and will extend all the required guidance and support, it added.