sebi:QJA/KS/CFID/CFID/30556/2024-25
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Provisions invoked
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 27
- s. 15J
- s. 15F
- s. 166
- s. 2(51)
- s. 291
- s. 179
- s. 2(60)
- s. 203
- s. 146
- s. 134(1)
- s. 5(24)
Regulations
- Reg. 4
- Reg. 2(c)
- Reg. 3
- Reg. 4(1)
- Reg. 17
- Reg. 4(2)(f)
- Reg. 3(c)
- Reg. 3(b)
- Reg. 18
- Reg. 201
- Reg. 33
- Reg. 4(2)(e)
- Reg. 18(3)
- Reg. 4(2)(r)
- Reg. 4(2)(k)
- Reg. 3(d)
- Reg. 4(1)(a)
- Reg. 4(2)
- Reg. 48
- Reg. 17(8)
Parties
- Noticee 1
- Noticee 2
- Noticee 3
- M/s Kwality Limited
Holding
The order finds that the financial statements of Kwality Limited were misrepresented, with transactions involving connected entities, struck-off companies, and non-dairy entities indicating that the financials cannot be relied upon, and that Noticees 1 and 2 failed to produce documentary evidence substantiating the genuineness of entries recorded under PSCA and the write-offs of substantial receivables.
Full text
Final Order in the matter of M/s Kwality Limited Page 2 of 94 referred to as “Transaction Auditor” or “TA”), SEBI initiated an investigation to ascertain as to whether there was any violation of the provisions of the SEBI Act, 1992 (hereinafter referred to as “SEBI Act”), 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”) during the period starting from December 11, 2016 to December 10, 2018 (hereinafter referred to as “Investigation Period”).
Final Order in the matter of M/s Kwality Limited Page 3 of 94 connected entities, stuck off companies and with entities who are not into diary business and just created for these transactions indicate that the financials of Kwality have been misrepresented and cannot be relied upon.
Final Order in the matter of M/s Kwality Limited Page 4 of 94 Particulars Amount Written-off - 102 | Provisions - 1277 and 325 Advances to suppliers provided as bad debts 200.26 Total 7,574.88
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Source: SecMarx — sebi:QJA/KS/CFID/CFID/30556/2024-25. 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.