Sebi starts audit of Future Retail’s financial statements

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NEW DELHI: The Securities and Exchange Board of India (Sebi) has initiated a forensic audit into the financial statements of Future Retail (FRL) for FY20, FY21 and FY22. The development comes in the backdrop of US e-tailer Amazon urging the RBI to run a forensic audit of FRL.
“Sebi has reasonable grounds to believe that the disclosure of financial information and the business transactions in the matter of Future Retail Ltd 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,” Sebi said.
Future Enterprises informed the stock exchanges about Sebi’s letter on Thursday. Choksi & Choksi LLP has been appointed as the forensic auditor. Big Bazaar parent FRL, entangled in a lengthy legal battle with Amazon is staring at insolvency proceedings after its deal to sell assets to Reliance Retail for Rs 24,700 crore fell through.

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