LLOYDS ENTERPRISES PAID ₹ 4.16 CRORES AS PENALTY FOR A SETTLEMENT OF WITH SEBI OVER RS 144.82 CRORE ADVANCES TO PROMOTER-LINKED ENTITIES (RPT).

 LLOYDS ENTERPRISES PAID ₹ 4.16 CRORES AS PENALTY FOR A SETTLEMENT OF WITH SEBI OVER RS 144.82 CRORE ADVANCES TO PROMOTER-LINKED ENTITIES (RPT).

RELATED PARTY TRANSACTION OF TRANSFER OF FUNDS WITHOUT INTEREST AND WITHOUT AN AGREEMENT

COMPANY, MANAGING DIRECTOR AND CFO PUNISHED FOR NON-DISCLOSURE OF RPTs.

                           SEBI VS LLOYDS ENTERPRISES                      

FACTS OF THE CASE

According to the regulator, its investigation found that between FY17 and FY21, Lloyds Enterprises did not recognize expected credit losses on Rs 144.82 crore of advances outstanding from Cheerful Trade & Realty Developers Pvt Ltd (CTRDPL) and Triumph Trade & Properties Developers Pvt Ltd (TTPDPL), as required under applicable accounting standards.

RELATED PARTY TRANSACTION OF TRANSFER OF FUNDS WITHOUT INTEREST AND WITHOUT AN AGREEMENT

The regulator also alleged that Lloyds Enterprises had transferred the Rs 144.82 crore to CTRDPL and TTPDPL in FY07 for the benefit of promoters and their related entities. The funds were lent at nil interest and without an agreement, according to the order.

NON DISCLOSURE OF RELATED PARTY TRANSACTION TO SEBI

SEBI further found that CTRDPL and TTPDPL were related parties of Lloyds Enterprises under the Listing Obligations and Disclosure Requirements (LODR) Regulations.

However, the company did not disclose the two entities as related parties in its annual reports from FY17 to FY23, according to the regulator.

LLOYDS ENTERPRISES PAID ₹ 4.16 CRORES AS PENALTY

Under the settlement order, Lloyds Enterprises paid Rs 1.28 crore, while its then managing director Rajesh Rajnarayan Gupta and CFO Viresh Shankar Sohoni each paid Rs 1.44 crore.

# Your Compliance expert R V SECKAR, FCS, LLB 79047 19295,