SEBI finds Kalahridhaan Trendz hid ₹81.22 lakh in bank defaults

This is a final order by SEBI regarding Kalahridhaan Trendz Ltd. and its directors, concerning alleged failures to disclose bank defaults and the making of false corporate announcements about business expansion and a large order from a fictitious Bangladeshi entity.

Who it concerns: Kalahridhaan Trendz Limited, Niranjan D Agarwal, Aditya N Agarwal, and Sunitadevi Niranjan Agarwal

What SEBI found or ordered

• SEBI found that the company failed to disclose defaults on credit card dues (₹50.99 Lakh) and business loan dues (₹30.23 Lakh) to HDFC Bank.
• SEBI found that the company made misleading announcements regarding production expansion and profit margins without providing supporting evidence.
• SEBI found that the company announced a ₹115.50 Crore order from 'Beximcorp Textiles' (Bangladesh), which SEBI determined was fictitious as no such company or contract exists in Bangladesh records.
• SEBI noted that trading volume in the company's stock increased by approximately 300% following the misleading announcement on May 02, 2024.
• The order references interim directions restraining the noticees from buying, selling, or dealing in the securities market until further orders.
• The company is listed on the NSE SME Platform and raised ₹22.49 Crore through its IPO.

Also in the document

• SEBI verified with the Bangladesh Securities Exchange Commission (BSEC) that no contract was signed between the alleged client and the company.
• The alleged client's contact details provided by the company included a Gmail address and UAE phone numbers, which SEBI noted in its examination.
• The company is a fabric manufacturer listed on the SME platform, with the examination period covering February 23, 2024, to December 15, 2024.