SEBI bars EKI Energy Services MD Manish Dabkara for 12 months over financial misrepresentation
The regulator found premature revenue recognition of ₹197.04 crore and fictitious expenses of ₹26.34 crore in the company’s financial statements
The Securities and Exchange Board of India (SEBI) has imposed a ban on the Managing Director of EKI Energy Services Ltd, Manish Kumar Dabkara, for a period of 12 months. Additionally, Dabkara has been barred from the securities market for two months. The regulator also imposed a ban on the company's former CFO, Mohit Kumar Agarwal, for eight months, and directors Naveen Sharma and Sonali Sheikh for five months and one month, respectively.
The monetary penalties imposed on EKI Energy Services, Dabkara, and other individuals total Rs 88 lakh. SEBI has directed Dabkara to take immediate steps to recover the funds diverted from the company. The regulator found that EKI had prematurely recognized revenue aggregating Rs 197.04 crore during the first three quarters of FY23, leading to a reckless misrepresentation of financial performance to investors.
Furthermore, EKI overstated its expenses by Rs 26.34 crore during the fiscal years 2021-22 and 2022-23, resulting in an understatement of profits.
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