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SEBI appoints Chokshi & Chokshi to conduct forensic audit of Future Retail’s financial statements

The audit of Future Retail's related party transactions will be conducted in relation to Future Supply Chain, Future Enterprises, and Future Consumer.

August 04, 2022 / 08:30 PM IST

The Securities and Exchange Board of India (SEBI) has ordered a forensic audit into the financial statements of Future Retail for FY20, FY21, and FY22 over concerns that the "disclosure of financial information and the business transactions in the matter of Future Retail Limited have been dealt with in a manner which may be detrimental to the interest of the investors or the securities markets...".

Explaining the reason for initiating the forensic audit, SEBI wrote in a letter: “SEBI has reasonable grounds to believe that the disclosure of financial information and the business transactions in the matter of Future Retail Limited have been dealt with in a manner which may be detrimental to the interest of the investors or the securities markets and/or an intermediary or a person associated with the securities market may have violated the provisions of the Securities and Exchange Board of India Act, 1992, Securities Contracts (Regulation) Act, 1956, SEBI (PFUTP) Regulations, 2003, and the provisions as specified in Section 24 of the Companies Act, 2013 or any other rules or the regulations made or directions issued by SEBI there under.”

Future Consumer Limited informed the stock exchanges on August 4 that it has received a letter from SEBI, addressed to the interim resolution professional, intimating the company about the appointment of M/s Chokshi & Chokshi LLP as the forensic auditor.

The market regulator appointed the forensic auditor to look into the consolidated financial statements of FRL and for auditing the books of accounts of the company and some other entities for the following review period -- the financial year ended March 31, 2020; the financial year ended March 31, 2021; and the financial year ended March 31, 2022.

The audit of Future Retail's related party transactions will be conducted in relation to Future Supply Chain, Future Enterprises, and Future Consumer.

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Notably, e-commerce giant Amazon, which has been sparring with Future Retail for a few years now, had earlier requested the Reserve Bank of India to run a forensic audit of Future Retail for the past three fiscals.
Moneycontrol News
first published: Aug 4, 2022 06:32 pm
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