Udayshivakumar Infra: Promoter’s 24-Year Old Daughter Gets Rs 6 Crore Salary Package

There is nothing wrong with newcomers and start-ups tapping the capital market. Take the case of the Davangere-based Udayshivakumar Infra Ltd which has filed a Red Herring Prospectus. It has evolved from a proprietorship firm in August 2002 to a public limited company in September 2022. But, according to the official website of the company (www.uskinfra.com), Udayshivakumar Infra Ltd was incorporated in the year 1995! The prospectus says Udayshivakumar was appointed as the MD of the company for a period of five years with effect from January 1, 2020 but did not draw any remuneration for the fiscals 2021 and 2022. Pursuant to a resolution passed by the board of directors and approved by the shareholders at the AGM held on September 19, 2022, the new terms of remuneration for the MD would certainly raise many eyebrows. The company, whose average annual employee cost was around Rs 3.5 cr during the last three fiscals, has proposed a basic salary of up to Rs 50 lakh per month (Rs 6 cr per annum) with an annual increment of Rs 10 lakh for its promoter-MD besides other perks. But, what’s more baffling is that his 24-year-old daughter Manjushree with experience of just two years as manager with the company, has been promoted as executive director and offered the same level of remuneration as her 53-year old father. Clearly it raises the question of corporate governance. By arrangement with https://investlive.net/.