INDIA: Diageo silent on India write-down charge
Diageo has declined to comment on a report that it is facing a write-down charge in India following allegations of financial wrongdoing by former employees.
Diageo India may have to write down up to INR1bn (US$21m) in its fiscal full-year results, if auditors find evidence to back the suspected misconduct, according to a report today (2 July) by Indian business publication livemint.com, citing two sources familiar with the situation.
A Diageo spokesperson said that the group would "not comment on speculation or rumour", when contacted by just-drinks today.
In May, India's Financial Express newspaper reported that Diageo had asked several mid and senior-ranking employees to leave the business. In the same article, it said that the drinks company had launched an internal inquiry into mismanagement of funds.
The report was not confirmed by the company. "It is simply not appropriate to comment on personnel matters which are, understandably, always confidential," a spokesperson told just-drinks.
Earlier this year, Diageo India MD Asif Adil left the company amid speculation that he had breached the firm's code of conduct.
A source close to the situation told just-drinks at the time that Adil's departure was "swift" and that the situation was "under review".
A Diageo spokesperson told just-drinks that Adil had left to "pursue new horizons". He was replaced by Roland Abella, previously head of Diageo North Africa and Middle East.
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