11B order in the matter of M/s. MAN Industries India Limited

This is a final order by SEBI regarding Man Industries (India) Limited (MIIL) and three individuals, examining allegations of financial misrepresentation, including the non-consolidation of subsidiary financials and the misutilization of funds through undisclosed related-party transactions.

M/s. Man Industries (India) Limited, Mr. Ramesh Mansukhani, Mr. Nikhil Mansukhani, Mr. Ashok Gupta

• SEBI conducted a forensic audit for FY 2014-15 to FY 2020-21 following a complaint about fund diversion and hidden losses.
• SEBI alleged MIIL misrepresented financials by not consolidating the financial statements of its subsidiary, MSPL.
• SEBI alleged misutilization of funds, including a loan of Rs. 5,641.38 Lakhs converted to capital advance without proper disclosure or approval.
• SEBI alleged non-disclosure of related party transactions, such as loans to LCPL and MRL, and round-tripping of funds.
• SEBI alleged that ICDs/advances of Rs. 4,000 Lakhs were written off without complying with Companies Act disclosure requirements.
• The Noticees' settlement applications were rejected by SEBI in 2023 and 2024.
• The order is issued under Sections 11(1), 11(4), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.

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