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Sebi orders forensic audit for Adhunik Industries

Steel News - Published on Mon, 24 Sep 2018

Image Source: The Financial Express
Financial Express reported that markets regulator Sebi ordered a forensic audit of steel maker Adhunik Industries, which figured among 331 ‘suspected shell companies’, on prima facie suspicion of misuse of the company’s books of accounts. In an interim order, the regulator directed the exchange to appoint an independent forensic auditor to verify any misrepresentation, including of financials or business, by Adhunik Industries Ltd as well as any misuse of the books of accounts or funds, including facilitation of accommodation entries or compromise of minority shareholder interest. The Securities and Exchange Board of India said that “The promoters and directors in AIL are permitted only to buy the securities of AIL. The shares held by the promoters and directors in AIL shall not be allowed to be transferred for sale, by depositories.”

The regulator has advised the firm to file its reply or objections to the interim order within 30 days. It said “There is a prima facie evidence that AIL was not in compliance with Sebi (LODR) Regulations, 2015 and there is prima facie suspicion of misrepresentation of business/ financials as well as suspicion of misuse of books of accounts of the company.’

The directors and key management personnel have prima facie failed to discharge their fiduciary responsibility, the regulator said. According to the order, approvals from requisite audit committee, board and shareholders were not obtained by the firm while executing fund transfers amounting to more than INR 400 crore with Adhunik Corporation Ltd.

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Posted By : Rabi Wangkhem on Mon, 24 Sep 2018
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