J Kumar Infra slips 20% on Sebi order for forensic audit
The market regulator has given 30 days to J Kumar Infra to respond to the interim order.
By ET Bureau | Updated:
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“The auditor will also look into misuse of the books of accounts and funds, including facilitation of accommodation entries or compromise of minority shareholder interest respect to its agreement with PACL,” it said.
MUMBAI: J Kumar Infraprojects were locked in the 20% lower circuit at ?164.40 on Monday after the market regulator ordered exchanges to appoint an independent auditor for the forensic audit of the Mumbai-based infra company. The firm had figured among 331 suspected shell companies.
The exchange would appoint an independent forensic auditor to verify misrepresentation of financials and business of the company, and look into the role of key management personnel, directors and promoters, according to the Sebi order.
“The auditor will also look into misuse of the books of accounts and funds, including facilitation of accommodation entries or compromise of minority shareholder interest respect to its agreement with PACL,” it said.
Besides, Sebi said it doubts the authenticity of documents submitted by J Kumar with regard to PACL as per the interim order.
The market regulator has given 30 days to J Kumar Infra to respond to the interim order.
In August last year, trading on the company was halted along with 329 others, after they were moved to so-called Stage VI of graded surveillance measures. Trading in these cases is allowed only once a month on the basis that they are shell companies as identified by the Ministry of Company Affairs and Serious Fraud Investigation Office. The company had appealed against the order in the Securities Appellate Tribunal, which stayed Sebi’s directions.
