sebi:Order/VV/JR/2019-20/6885-6886
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Provisions invoked
- s. 15
- s. 12
- s. 15H
- s. 22
- s. 15J
- s. 28A
- s. 18
- s. 143
Regulations
- Reg. 3
- Reg. 2(1)(c)
- Reg. 200
- Reg. 15H
Holding
The Noticees (statutory auditors) were found to have violated Section 12A(a), (b), (c) of the SEBI Act and Regulations 3(a)-(d), 4(1), 4(2)(f), (k), (r) of the PFUTP Regulations by issuing an unqualified utilisation certificate for Tarini International Ltd.'s IPO proceeds when actual utilisation for stated objects was only Rs. 151.66 lakhs against Rs. 1630.98 lakhs certified.
Full text
Adjudication Order in respect of two entities in the matter of Tarini International Ltd. Page 2 of 47 3. Pursuant to investigation in this regard, SEBI observed and alleged the following: 3.1. On page no 42 of the Annual Report for the financial year 2014-15, the statutory auditor had mentioned that in respect of the matters mentioned on page no. 41, his opinion was not qualified. Further, under Report on Other Legal and Regulatory requirements as required under Section 143 (3) of the Companies Act, the statutory auditor had stated that - a. It had sought and except for the matters described in the Basis for Qualified Opinion paragraph, obtained all the information and explanations, which to the best of your knowledge and belief were necessary for the purpose of your audit.
Adjudication Order in respect of two entities in the matter of Tarini International Ltd. Page 3 of 47 3.4. The actual utilization of IPO proceeds was significantly different from the certificate issued by VCG and the utilisation certificate did not carry any qualifications in spite of the fact he had access to the bank statements and books of accounts of the company. The details of “object of the issue”, "amount proposed to be utilised by the company as stated in prospectus" and "utilisation of funds" as certified by the statutory auditor are mentioned in the table below: Objects of the Issue Amount proposed to be utilised as stated in the prospectus (` in Lacs) Amount utilised as certified by statutory auditor (` in Lacs) To Finance long term incremental working capital requirements 1000.00 888.38 Renovation and Interior of Registered office 160.00 159.28 Brand Building 150.00 72.95 General Corporate purposes 250.00 430.00 Issue expenses 70.98 80.37 Total 1630.98 1630.98
Adjudication Order in respect of two entities in the matter of Tarini International Ltd. Page 4 of 47 3.5.1.1. Payments made to Tarini Infrastructure Ltd (TinL), Tarini Wilderness Innovation Pvt Ltd (TWIL), Venture Infrastructure Ltd (VIL) and B. Soilmec India Pvt Ltd (BSIL):
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Source: SecMarx — sebi:Order/VV/JR/2019-20/6885-6886. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.