In more troubles for embattled liqour baron Vijay Mallya, regulator Sebi has asked his group holding company UBHl to restate its financial accounts for two previous years to address issues flagged by the auditors.
Disclosing the Sebi directive for the first time, the company however said on Saturday it has already approached the Securities Appellate Tribunal (SAT) against this order and has secured an interim stay.
“Sebi in its communication dated April 27, 2015, has advised the company to restate the accounts for the financial years 2012-13 and 2013-14 to address the qualifications made in the report of the statutory auditors despte a representation that most of the required adjustments have already been made in the accounts for the financial year 2013-14,” United Breweries (Holdings) ltd Chairman Vijay Mallya wrote in the 'notes to the accounts' of the company.
UBHl (United Breweries (Holdings) ltd) today reported a net profit of `32 crore for the fiscal ended March 31, 2015, as against a net loss of `1,393.65 crore in the previous financial year 2013-14.
Mallya further said that the company has made an appeal to the SAT, challenging the directives of Sebi. “By its order dated May 29, 2015, the SAT has stayed the operation, implementation and effect of the communication dated April 27, 2015, till the next date of hearing,” he said.
Mallya has been under intense regulatory glare over issues at his various group companies, including United Spirits ltd where he has sold the controlling stake to UK-based Diageo Plc. UBHl also disclosed that the company is running without a Managing Director, while it also does not have any Chief Financial Officer.
“The day to day operations of the company are managed by the senior executives of the company under directions of the Group CFO and Chairman of the Board,” the notes signed by Mallya said.
Earlier this week, United Spirits disclosed it has received notices from the Ministry of Corporate Affairs and the I-T Department for inspection of its book subsequent to a probe ordered by its new management over alleged irregularities in loans given by it to various companies of Mallya-led UB Group.
The company had also said its inquiry had identified certain 'additional matters' raising concerns ‘as to the propriety of the underlying transactions’ with ‘additional parties’ without specifying details.
The new management has asked Mallya to step down from the chairmanship of USl alleging funds diversion to Kingfisher and other UB group entities. Mallya has refused to quit.
It had alleged that “various improprieties and legal violations" were found in a probe into loans worth `1,337 crore given by USl to United Breweries (Holdings)(UBHl). The probe had revealed that between 2010 and 2013, funds were diverted from USl and/or its subsidiaries to certain UB Group companies, including Kingfisher Airlines.
UBHl had entered into a loan agreement with United Spirits ltd (USl) on July 3, 2013, under which `1,337.41 crore is outstanding at the end of March this year, according to the 'notes to the accounts'.
“The loan is for a period of nine years and carrying interest rate of 9.5 per cent per annum. At EGM of USl on November 28, 2014, the said loan agreement between the company and USl was not approved.
