Securities and Exchange Board of India (SEBI) has ordered for a forensic audit of Jalan Cement Works, after finding prima facie evidence of misrepresentation of financials by them.
The watchdog has ordered the appointment of independent forensic auditors to verify any misuse of the books of accounts or funds as well as any misrepresentation including of financials and business of the firm. SEBI is currently investingating 331 'suspected shell companies'.
With regard to Jalan Cement Works, SEBI said that the company's income, investments, inventories, loans and advances are all having significant transactions with connected or related parties for which the firm has failed to provide adequate documentary support.
"Thus, there is prima facie suspicion of misuse of funds/ books of accounts of the company as well as of misrepresentation of business/financials," SEBI said.
SEBI has given 30 days time for Jalan Cement to file a reply or objections to the interim order.
