The Serious Fraud Investigation Office (SFIO) has received complaints of violations of corporate governance against textile company, S Kumars Nationwide (SKNL). The charges are being examined by the Registrar of Companies.
Replying to a query in Rajya Sabha on Monday, the Minister of State for Corporate Affairs, R. P. N. Singh, said that the SFIO had received complaints of violations of corporate governance and myriad transactions involving de-mergers, among others, against SKNL.
“The complaint was taken up with the company by the Registrar of Companies, Mumbai, which has reported that the company’s reply is under examination. Further action in the matter will be taken on receipt of the report from the RoC Mumbai,” he said, in his reply.
However, he said that the SFIO, on its own, was not investigating the issues relating to misrepresentation in corporate reporting and violation of the Companies Act against SKNL.
SKNL response
S Kumars Nationwide in a filing to the Bombay Stock Exchange on September 4 said the company has replied in detail to a letter received by the Registrar of Companies, Mumbai. “The company had received a letter from RoC, Mumbai, asking for comments and clarifications on certain issues raised by an individual. The matters raised by the individual are frivolous and baseless," the company said in a statement.
The textile company added that it follows best practices in corporate governance and believes that its clarifications and stance will more than adequately address any issues raised and forwarded to the company. "There is no other review being conducted by any government/regulatory authority with regard to this matter," SKNL added.