Sebi pulls up Prabhat Dairy for non-cooperation with auditor; asks it to deposit Rs 1,292 crore

New Delhi: Markets regulator Sebi on Tuesday directed Prabhat Dairy to cooperate with the forensic auditor and deposit over Rs 1,292 crore in a nationalised bank within seven days till the conclusion of the audit.

Sebi had appointed Grant Thornton Bharat LLP as the forensic auditor in July to ascertain facts and circumstances in relation to financials of the firm with respect to its financial statements for the financial years ending March 31, 2019, and March 31, 2020. The auditor was appointed to ascertain manipulation of books of accounts of the firm, misrepresentation of financials or business operations by the company, wrongful diversion of funds by promoters, directors or key managerial persons and business transfer and share purchase agreements.

In its interim order, the regulator noted that the firm and its managing director have repeatedly failed to cooperate with the forensic auditor despite their multiple efforts to obtain the information needed for ensuring the commencement of audit.

"Unless the forensic audit is conducted, Sebi will not be in a position to determine whether or not the company has indulged in mis-statement of accounts, diversion of funds to its subsidiaries/associates, etc. which money belongs to its shareholders," Sebi said.