sebi:WTM/GA/14/ISD/9/05

SEBI · SEBI · 2005-06-30 · G Anantharaman, Whole-Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Pending investigation and final order, promoter, directors and 15 connected clients restrained from buying, selling or dealing in securities of IFSL Ltd, named brokers restrained from dealing in IFSL Ltd on their behalf, and IFSL Ltd restrained from issuing equity/convertible instruments or altering capital structure till further directions.

Provisions invoked

• s. 11B
• s. 19

Regulations

• Reg. 13(3)
• Reg. 3(d)

Holding

Pending investigation, SEBI issued ad interim ex-parte directions restraining the promoter, directors, connected clients and their brokers from dealing in IFSL Ltd securities and restraining IFSL Ltd from issuing securities or altering capital structure.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER UNDER SECTIONS 11B AND 11(4)(b) OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 IN THE MATTER OF IFSL LTD. (FORMERLY INTERLINK FINANCIAL SERVICES LTD).

Financial performance of the company 2.4The annual results filed by the company for the last four years are given below: (Amount in Rs Cro Particulars Audited Un-Audited Un-Audited Un-Audited Date Begin 1-Apr-04 1-Apr-03 1-Apr-02 1-Apr-01 Date End 31-Mar-05 31-Mar-04 31-Mar-03 31-Mar-02 Interest Earned, Operating Income 46.55 14.92 1.25 1.16 Other Income 8.35 0.02 0.04 - Total Income 54.89 14.93 1.29 1.16 Operating Expenses -46.43 -14.91 -1.28 -1.16 Operating Profit 8.47 0.02 0.01 - Profit before Tax 8.47 0.02 0.01 - Tax -1.80 -0.01 0.00 - Profit after Tax 6.66 0.01 0.01 - Prior Period Items - - 0.00 - Net Profit 6.66 0.01 0.01 - Equity Capital 8.00 8.00 6.70 5.25 Reserves 6.95 - - - EPS 8.33 - - - Nos. of Shares - Non Promoters 6637500 - - - Percent of Shares – Non Promoters 82.97 - - - 2.5The above table on financial performance of the company leads to several important conclusions about the manner in which the company is disclosing its financial results. example during the financial year ended March 31, 2002 the company’s accounts showed no profit or loss. This delicate balancing act was achieved by the company by show total income equal to the operating expenses. The annual report for the year further shows that what has been shown under the head of “operating expenses” is largely the cos purchase of shares and correspondingly the income is shown largely as the sale proceeds. This modus operandi has been used by the company in all the years while disclosing financial resu

June 29, 2005 6:36:15 PM IFSL Board recommends a dividend of 10 % on the Equity Shares. July 05, 2005  1:28:20 PM: The Company is in the process of developing Rs 800 Million Renewable Energy Power Project with Kalyan Dombiwali Municipal Corporation. This will be the prestigious power project to be developed by the Company thus adding another milestone in its rapid expansion. Today, the Company is poised to become India leading private sector power utility, with a reputation for reliability. It will soon have a presence in the field the power business system - generation (Thermal, Hydro and Solar) transmission and distribution. The proposed Power Station of the company is located at Kalyan in the state of Maharashtra. The Company besides undertaking several projects in generation and transmission is exploring opportunities for growth in all area of the power value chain. Thus, the organizational transformation in establishing the Company as a national player has begun to take a clearly defined shape. The ongoing process involved in project implementation in generation including efforts for reducing cost and enhancing reliability have started to yield encouraging results. The Company will develop the said Power Station through its wholly owned subsidiary San Infra Pvt Ltd. July 19, 2005 1:13:48 PM The Company in association with M/s. ENTEC Biogas GMBH, Austria has received a letter of Intent to execute 1000 TPD MSW energy project at Jakarta, Indonesia on turnkey basis from M/s.

Source: SecMarx — sebi:WTM/GA/14/ISD/9/05. 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.