New Delhi, Market regulator SEBI has banned Manpasand Beverages Ltd (MBL) and three of its top executives from the securities market for three years for manipulating and misrepresenting the company's financial statements and slapped a total of 68 fines on them. A fine of Rs lakh has been imposed. fine of rupees
The regulator said in its order that the financial statements of the company for the financial years 2018-19 and 2019-20 were manipulated and misrepresented.
Apart from Manpasand Beverages, the people banned by Sebi are – company promoter, chairman and managing director (CMD) Dhirendra Singh, promoter and executive director Abhishek Singh and chief financial officer (CFO) Pares Thakkar.
Additionally, a penalty of Rs 17 lakh each has been imposed on these four entities, which will have to be paid within 45 days, SEBI said in its 55-page order passed on Tuesday.
Additionally, Dhirendra Singh, Abhishek Singh and Paresh Thakkar have been banned for five years from holding the position of director or key managerial personnel in any capacity in any listed public company or any intermediary registered with SEBI.Additionally, former independent directors of the company - Milind Babar and Chira Doshi were fined Rs 2 lakh each and current independent directors - Nishis Mobar and Bharti Naik were fined Rs 1 lakh each. Naik was a non-executive director at that time.
After receiving complaints from MBL's audit committee chairman Bipin Rathore in September 2019, SEBI investigated the matter to detect any possible manipulation or misrepresentation in the books of accounts of MBL.
Additionally, SEBI appointed Chokshi & Chokshi LLP to conduct a forensic audit of the company's financial statements for 2018-19 and 2019-20.
In the report submitted to SEBI, the auditor pointed out various irregularities in the financial statements, including purchases made from unregistered dealers without making payments; Providing additional details of purchase and sale transactions with parties who had not filed GST returns makes such transactions suspicious; Inflating sales, losses, receivables and fixed assets to dubious entities.“The financial statements of MBL for 2018-19 and 2019-20 were manipulated and the data therein was misrepresented… leading to manipulated, false and misleading financial results. of the company during 2018-19 and 2019.20, which presented a false picture of the financial health of the company to investors,” said Ashwan Bhatia, whole-time member, SEBI.
SEBI also noted that the manipulation in MBL had started even before the investigation period, as the company was found misusing the proceeds from the qualified institutional placement (QIP) made in September 2016. It was established by an order of SEBI. 2 March 2023.
Also, the regulator in its order had found that MBL had deficiencies in internal controls and had published misleading financial statements for 2016-1 and 2017-18.Since these facts were not part of the present proceedings, the regulator did not consider them while taking the decision. On allegations against institutions.
The regulator said in its order that the financial statements of the company for the financial years 2018-19 and 2019-20 were manipulated and misrepresented.
Apart from Manpasand Beverages, the people banned by Sebi are – company promoter, chairman and managing director (CMD) Dhirendra Singh, promoter and executive director Abhishek Singh and chief financial officer (CFO) Pares Thakkar.
Additionally, a penalty of Rs 17 lakh each has been imposed on these four entities, which will have to be paid within 45 days, SEBI said in its 55-page order passed on Tuesday.
Additionally, Dhirendra Singh, Abhishek Singh and Paresh Thakkar have been banned for five years from holding the position of director or key managerial personnel in any capacity in any listed public company or any intermediary registered with SEBI.Additionally, former independent directors of the company - Milind Babar and Chira Doshi were fined Rs 2 lakh each and current independent directors - Nishis Mobar and Bharti Naik were fined Rs 1 lakh each. Naik was a non-executive director at that time.
After receiving complaints from MBL's audit committee chairman Bipin Rathore in September 2019, SEBI investigated the matter to detect any possible manipulation or misrepresentation in the books of accounts of MBL.
Additionally, SEBI appointed Chokshi & Chokshi LLP to conduct a forensic audit of the company's financial statements for 2018-19 and 2019-20.
In the report submitted to SEBI, the auditor pointed out various irregularities in the financial statements, including purchases made from unregistered dealers without making payments; Providing additional details of purchase and sale transactions with parties who had not filed GST returns makes such transactions suspicious; Inflating sales, losses, receivables and fixed assets to dubious entities.“The financial statements of MBL for 2018-19 and 2019-20 were manipulated and the data therein was misrepresented… leading to manipulated, false and misleading financial results. of the company during 2018-19 and 2019.20, which presented a false picture of the financial health of the company to investors,” said Ashwan Bhatia, whole-time member, SEBI.
SEBI also noted that the manipulation in MBL had started even before the investigation period, as the company was found misusing the proceeds from the qualified institutional placement (QIP) made in September 2016. It was established by an order of SEBI. 2 March 2023.
Also, the regulator in its order had found that MBL had deficiencies in internal controls and had published misleading financial statements for 2016-1 and 2017-18.Since these facts were not part of the present proceedings, the regulator did not consider them while taking the decision. On allegations against institutions.
