sebi:WTM/MPB/ISD/61/2018
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Facts / Headnote
Directions contained in the Interim Order dated September 26, 2017 confirmed; forensic audit to continue
Provisions invoked
- s. 19
Parties
- Jai Mata Glass Limited
Holding
The directions contained in the Interim Order dated September 26, 2017 against Jai Mata Glass Limited are confirmed and the forensic audit shall continue.
Full text
Order in the matter of Jai Mata Glass Limited Page 2 of 22 strict monitoring so that investors could take informed investment decisions, till SEBI and Exchanges complete their detailed examination of such companies.
Order in the matter of Jai Mata Glass Limited Page 3 of 22 5. The prima facie observations in the Interim Order were as under: i. “The company entered into an Agreement for sale of land at Himachal Pradesh on 21/11/2014 with Micro Seamless and the sale deed was executed on 01/07/2016. However, copy of Sale deed has not been provided and further no clarification was provided with respect to delay in execution of the sale deed. On analysis of Bank statement provided by the company, it is observed that Rs. 2.5 crore was credited on 05/05/2016 from Micro Seamless, whereas an amount of Rs. 7.63 crore was credited on 04/07/2016 but the descriptions in the bank statement do not provide any input for source of transfer. ii. The company has not provided any details and documentary proof for the Advance for capital goods of Rs. 15 lakhs and the reasons for amount paid back on 16/05/2016. However, on analysis of SBI bank statement provided by the company it is observed that the amount of Rs. 15 lakhs has been paid to Integrated master securities. The question with respect to what capital goods were intended to be sold and why the same was not executed has not been answered clearly. iii. The company has provided a list of items for utilization of sale proceeds of land without giving full break up and documents for the repayment of outstanding loans, challaan for repayment of taxes, details of expenses paid by the company, details of advance payment for property, directors’ name for repay
Order in the matter of Jai Mata Glass Limited Page 4 of 22 v. The company has provided the list of 17 parties for trade receivables without any documentary proof to substantiate their genuineness, existence, due date of payment, contracts and efforts made by the company to recover the amount. vi. The company was asked to provide the audited financials however, it has provided the unsigned and unaudited financials for the F.Y. 2016-17. vii. The bank statements provided by the company are also unsigned and unstamped”.
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Source: SecMarx — sebi:WTM/MPB/ISD/61/2018. 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.