In an interim order, the regulator barred the corporate and its promoters from accessing or associating themselves with the securities market in any method.
“The corporate is discovered to have did not make materials disclosures relating to its default in compensation of its dues to HDFC Bank and in addition made false and deceptive company bulletins relating to its enlargement and receipt of a big purchase order from a fictitious entity from Bangladesh,” Sebi mentioned.
Kalahridhaan Trendz is a textile firm that manufactures and trades materials, together with suitings, shirting, and costume supplies. The corporate made its public debut in March final 12 months and has since almost misplaced its worth.
Sebi’s investigation revealed that Kalahridhaan, which raised Rs 22.49 crore by its SME IPO in June 2023, diverted funds meant for enterprise enlargement, did not disclose essential monetary particulars, and manipulated monetary statements.
HDFC Financial institution, one of many lenders, had flagged non-payment points associated to Kalahridhaan’s loans, prompting additional scrutiny by Sebi. Additional, the corporate’s financials submitted in the course of the IPO course of didn’t match the truth of its banking transactions.The investigation discovered that the corporate used cast paperwork to point out non-existent transactions, overstated revenues, and did not disclose defaults on financial institution loans.”The evaluation indicated that funds raised by the IPO weren’t used for the said enterprise functions, together with working capital and mortgage repayments, however as a substitute routed by undisclosed entities. Moreover, the corporate’s financial institution accounts confirmed indicators of economic misery, together with mortgage defaults that weren’t disclosed to traders earlier than the IPO,” an order launch famous.
Sebi additionally flagged a number of irregularities within the firm’s filings, together with inflated gross sales figures and non-disclosure of related-party transactions. The regulator discovered that the corporate created false buy and gross sales invoices to inflate income and mislead traders about its monetary well being.
