MUMBAI: India’s market regulator has initiated a forensic audit of the books of accounts of Suzlon Energy Ltd, the country’s largest renewable energy equipment maker.
The Securities and Exchange Board of India (Sebi), in a letter on Monday informed the company of appointing an auditor to carry out forensic audit with respect to financial statements of the firm, according to an exchange filing by Suzlon on Tuesday.
Sebi, in its letter, said the appointment of the forensic auditor is in the context of disclosures of financial information and business transactions.
The audit is meant to examine whether the company has violated any of the norms stipulated by securities market regulations and the Companies Act, said Suzlon’s statement.
In response to Sebi’s sudden move, Suzlon said since it is a global company, with strong internal controls and an effective audit system, it believes it has been and is compliant with applicable laws and regulations. “The company is committed to extending its fullest cooperation in completion of the forensic audit.”
This is not the first time the market regulator has put Suzlon under scrutiny.
In April 2018, following an investigation by Sebi, in an adjudication order the regulator imposed a penalty on the company, saying Suzlon, its chairman Tulsi Tanti and executive director Girish R Tanti had violated listing regulations and breached corporate disclosure norms meant for prevention of insider trading between April 2006 and March 2009.
Sebi found that the company did not disclose about an “option” with a certain buyer to cancel one or more phases of a project, which had a significant bearing on the company’s operational performance and the stock price of the company.
News Source:- Livemint