sebi:WTM/MPB/ISD/111/2017
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Facts / Headnote
Representation of M/s Pincon Spirit Limited disposed of; actions in SEBI letter dated August 07, 2017 modified to revert trading to pre-August 7, 2017 status, direct Exchange-appointed independent forensic audit, permit promoters/directors only to buy with sale transfers blocked, continue other applicable actions, subject to auto-confirmation if no reply within 30 days.
Provisions invoked
- s. 11B
- s. 11(4)
- s. 19
- s. 11(1)
Regulations
- Reg. 2(1)
Parties
- M/s Pincon Spirit Limited
Holding
SEBI modified its August 7, 2017 measures to revert trading in PSL to the status prior to that letter, while ordering an Exchange-appointed independent forensic audit into misrepresentation and misuse of funds and restraining promoters/directors to buy-only with no sale transfers.
Full text
Interim Order in the matter of M/s Pincon Spirit Limited Page 2 of 24 (b) Misusing the books of accounts/funds of the company including facilitation of accommodation entries to the detriment of minority shareholders and therefore reneging on the fiduciary responsibility cast on the board, controlling shareholders and key management person (KMP)
Interim Order in the matter of M/s Pincon Spirit Limited Page 3 of 24 respect of all the listed securities as identified by MCA and communicated by SEBI, with effect from August 8, 2017.
Interim Order in the matter of M/s Pincon Spirit Limited Page 4 of 24 9. PSL vide its letter dated August 14, 2017 had made a representation to SEBI submitting inter alia as under: (a) Company have its own production unit of Indian Made Foreign Liquor (IMFL), Indian made Indian Liquor (IMIL) and FMCG. (b) Company have cash credit finance of Rs. 325 Crores from a consortium of 1o banks namely, State Bank of India, Bank of India, HDFC Bank, Andhra Bank, Vijaya Bank, Corporation Bank, Punjab National Bank, UCO Bank, IDBI Bank and Lakhsmi Vilas Bank. There is no default in debt servicing by the company. (c) Company had filed income tax return for Assessment Year (AY) 2017-18, 2016-17 & 2015-16. Copy submitted. (d) Company had filed annual returns with MCA for Financial Year (FY) 2015-16, 2014-15 & 2013-14. Copy of acknowledgment submitted. (e) Company had submitted Auditor Certificate dated August 10, 2017. The Auditor certify that Company is a going concern and is engaged in the business of Manufacturing, Marketing, Blending, Bottling and Retail of IMFL, IMIL and Refining and Packaging of FMCG items (including edible oil) through own manufacturing set up, tie up manufacturing set up / Brand Franchise. (f) Company had paid excise duty amounting to Rs. 437.29 Crores.
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Source: SecMarx — sebi:WTM/MPB/ISD/111/2017. 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.