sebi:Order/VV/NK/2023-24/28594-28597

SEBI · SEBI · 2018-04-01 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings initiated vide Show Cause Notice dated April 28, 2023 disposed without imposition of any monetary penalty; alleged violations not established

Provisions invoked

• s. 15
• s. 15H
• s. 27

Regulations

• Reg. 4
• Reg. 3
• Reg. 6
• Reg. 4(1)
• Reg. 16
• Reg. 17(8)
• Reg. 6(2)
• Reg. 4(2)(f)(i)

Parties

• Tanla Platforms Ltd. - Noticee-1
• Mr D Udaykumar Reddy, CMD - Noticee-2
• Mr Kamoji Srinivas G., CFO - Noticee-3
• Ms Seshanuradha Chava, Compliance Officer - Noticee-4

Holding

The Adjudicating Officer held that the alleged misstatement to the extent of Rs. 103.15 crores and violations of PFUTP Regulations and LODR Regulations for FYs 2018-19 and 2019-20 were not established against Tanla Platforms Ltd. and its CMD, CFO and Compliance Officer, and disposed of the Show Cause Notice dated April 28, 2023 without imposing any penalty under Section 15HA and Section 15HB of the SEBI Act.

Full text

2 treatment of depreciation on its technical assets-Platform and Deployments in FY 2018-19 and FY 2019-20, and if so, whether the same were in violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations”) read with the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). The investigation period is taken as April 01, 2018 to March 31, 2020 i.e. FY2018-19 and 2019-20 (hereinafter referred to as “Investigation period” or “IP”). However, whenever deemed necessary, references were made to the events/ timeframes outside this period.

3 crores in the financial statements for FY 2018-19 and 2019-20. It was also observed that Tanla failed to implement the prescribed accounting standards i.e. IND AS 16 and IND AS 36 while assessing and determining the useful life of the technical assets-Platform & Deployment which resulted in misrepresentation/ misstatement of the company’s financial statements to the extent of Rs. 103.15 crores. Thus, it was alleged that the Company knowingly reported wrong, false, and misleading financial statements for FYs 2018-19 and 2019-20.

4 dated March 31, 2023. F. Show Cause Notice: 8. A common Show Cause Notice dated April 28, 2023 (hereinafter referred to as “SCN”) in terms of the provisions of Rule 4 (1) of the Adjudication Rules read with section 15- I of the SEBI Act was issued to each of the Noticees calling upon them to show cause as to why an inquiry should not be held against them under Rule 4 of the Adjudication Rules and penalty in terms of Sections 15HA and 15 HB of the SEBI Act, be not imposed upon them for the alleged violations.

Source: SecMarx — sebi:Order/VV/NK/2023-24/28594-28597. 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.