FMCG major Britannia Industries today said it has initiated an internal probe over alleged irregularities committed by some of its staff and 10 employees have already been put on notice.
The company, however, did not specify the financial impact of the alleged irregularities nor the positions of the employees who are on notice in the firm.
“We have come across instances of certain practices and behaviour which are in violation of our code of business conduct, which clearly spells out the ethical standards of behaviour expected of all Britannia employees at all times,” a Britannia spokesperson told PTI.
“These are being investigated thoroughly and appropriate action will be taken against employees who have violated that code of business conduct, which every employee signs,” the spokesperson added.
The spokesperson was responding to queries on whether Britannia Industries is conducting an internal investigation into its supply chain and logistics department to probe the alleged misuse of company powers in giving orders by unfairly favouring some suppliers at the cost of others.
“Ten people have been asked not to show up at work till the investigation is over,” the company spokesperson said.
The Bangalore-based firm, which sells various brands including Good Day and Marie Gold, posted net sales of Rs 4,947.04 crore for 2011-12 fiscal.
The development comes close on the heels of sportswear major Reebok India’s allegation of fraud and malpractices against its former Managing Director, Mr Subhinder Prem Singh, and former COO, Mr Vishnu Bhagat, that cost the company Rs 870 crore.
Shares of Britannia were trading at Rs 534.15 on the BSE in late afternoon trade, up 3.25 per cent from its previous close.