MG Motor India highlights it as a legally compliant and professionally managed company.
MG Motor India on Tuesday issued an official statement on the notice sent to them by the Department of Corporate Affairs regarding the alleged financial irregularities. Emphasizing its commitment to a transparent business model, the company stressed that it will cooperate fully with the authorities ‘within the specified time frame.’
Bloomberg initially reported on the investigation that began against MG Motor India after a ‘detailed analysis of the company’s financial statements revealed suspicious transactions with related parties, alleged fraud. taxes, under- and over-invoices and other irregularities.’ The report, based on information from senior sources, also mentions that the company’s top management has been summoned next month for clarification.
On its side, MG Motor – a British brand owned by SAIC Motor Corp Ltd. The company, which made its debut in India in 2019 and offers several best-selling models – issued the following statement:
“We have been sent a notice seeking to explain mainly why we are operating at a loss based on the annual report for the first operation 2019 – 2020. MG Motor India is a compliant company. legally compliant, professionally managed and to the highest standards of compliance and governance, and committed to transparency, claiming that it is impossible for any auto company to be profitable in its first year of operation. This is due to the huge Capex investment requirements and long survival time in a highly competitive market like India, where many multinationals have struggled for decades and have suffered losses. We are a global multinational company and our books are maintained according to Indian accounting standards and are audited by reputable auditing firms.”
First published date: November 1, 2022, 11:27 AM IST
