sebi:WTM/ASB/CFID/CFID/26926/2023-24
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Facts / Headnote
Noticees held liable for financial misrepresentation and disclosure/governance violations; monetary penalties of Rs.27,00,000 each imposed; order effective immediately with 3 working days to liquidate any open derivative positions.
Provisions invoked
- s. 19
- s. 11(1)
- s. 12A
- s. 15H
- s. 27
- s. 15J
- s. 21
- s. 23J
- s. 23H
- s. 14
- s. 150
- s. 177
- s. 134(5)
- s. 128
- s. 292A
- s. 177(2)
- s. 12A(1)
- s. 128(1)
Regulations
- Reg. 3
- Reg. 4(2)(f)
- Reg. 40
- Reg. 3(b)
- Reg. 31(1)
- Reg. 27(2)(a)
- Reg. 4(1)(a)
- Reg. 40(9)
- Reg. 48
- Reg. 33(2)(a)
- Reg. 2
- Reg. 55A
- Reg. 33(3)
- Reg. 4(2)(a)
- Reg. 4(a)
Parties
- Savita Satish Gowda
- Mohan P. Kala
- Lalit Mishra
- Vijay Kriplani
Holding
SEBI found the Company and its promoter-directors liable for inflated fictitious sales/purchases, undisclosed related party transactions, false financials and governance failures, and imposed Rs.20,00,000 under Section 15HA plus Rs.5,00,000 under Section 15HB plus Rs.2,00,000 under Section 23H (total Rs.27,00,000) on each of the four noticees.
Full text
__________________________________________________________________________________ Order in the matter of Sharon Bio-Medicine Limited Page 2 of 58 directors, auditor and Interim Resolution Professional (IRP) by SEBI for the period July 01, 2011 to March 31, 2017 (Investigation Period), the following were observed:
__________________________________________________________________________________ Order in the matter of Sharon Bio-Medicine Limited Page 3 of 58 agreements with vendors and customers and customer master data (due to which balance confirmations from customers could not be obtained). Further, the inward registers pertaining to Plant - W34 (for July 14 to Nov 14 and April 15 to Oct 15) and Plant - L6 (for July 14 to Oct 15. Plant- Utt for 14-15, 15- 16 & 16-17) were not furnished. The Company also did not provide debtor and creditor ageing reports with mapping of outstanding invoices. Further, pricing comparisons for purchase and sales could not be conducted as pack size details of units were not available in the sales and purchase registers which were furnished.
__________________________________________________________________________________ Order in the matter of Sharon Bio-Medicine Limited Page 4 of 58 2.5 A summary of non-trading purchases and sales was as follows: Table 6: Summary of Non Trading Purchase & Sale transactions Rs. in Crores Particulars Jul-2014 to Jun-2015 Jul-2015 to Mar-2016 Apr-2016 to Mar-2017 Total % Sales Exports 81.24 10% 67.37 26% 72.47 54% 221.08 18% Sales Domestic 52.53 6% 42.38 17% 57.41 42% 152.32 12% Sales Job Work 2.45 0% 4.91 2% 5.09 4% 12.45 1% Total Non-Trading Sales 136.22 16% 114.66 45% 134.97 100% 385.85 31% Total Non-Trading purchase 82.2 38% 62.31 35% 78.43 37% 222.94 37%
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Source: SecMarx — sebi:WTM/ASB/CFID/CFID/26926/2023-24. 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.