The Securities and Exchange Board of India (SEBI) had, in September 2021, ordered a forensic audit into the financial statements of Brightcom Group Ltd. The same was disclosed by the Hyderabad-based company in a regulatory filing on February 28.
The market regulator had appointed Deloitte Touche Tohmatsu India LLP as the forensic auditor of Brightcom's book. "The financial statements with respect to the period between FY2014-15 and FY2019-20 would be audited," the Sebi letter said.
"The Exchange is in receipt of a letter dated 16 September 2021, from SEBI, issued to the company, Brightcom Group Ltd, informing the Company about the appointment of a forensic auditor, Deloitte Touche Tohmatsu India LLP, for conducting the forensic audit for the financial years FY15 to FY20. The same is being disseminated for the information of the investors," Brightcom informed the stock exchanges.
The order copy of SEBI, which was shared in the regulatory filing, notes that the regulator found discrepancies which "may be detrimental to the interests of investors and securities markets".
"Scope of the audit is to conduct forensic audit of the consolidated financial statements of the Company for above period with a special focus on impairment of assets," it further stated.
The forensic auditors are expected to verify, inter-alia, the following —"manipulation of books of accounts of the company and its subsidiaries, "misrepresentation including consolidated financials and/or business
operations and "wrongful diversion/siphoning of company funds by promoters/ directors key managerial persons", the order added.
