SEBI Slaps Fines on LCC Infotech for Financial Misrepresentation

SEBI imposed fines totaling Rs 12 lakh on LCC Infotech and six individuals, including its key executives, for misrepresenting the company's financial statements. The investigation revealed non-compliance with accounting standards and failure to disclose related party transactions, leading to compromised transparency and accountability.

On Tuesday, SEBI imposed fines amounting to Rs 12 lakh on seven entities, prominently featuring LCC Infotech and its key executives, for financial misrepresentation. Fines of Rs 6 lakh were directed at LCC Infotech, with Rs 1 lakh apportioned to each executive, including Kirti Lakhotia, Sidarth Lakhotia, and others.

SEBI's in-depth probe revealed significant lapses in LCC's financial reporting, notably the omission of required provisions/impairments in loans and investments for the fiscal years 2019-2022. The absence of disclosures about related party transactions further compounded these issues.

Critically, key company figures, including the managing director and audit committee members, were identified as having either endorsed or failed to prevent misreporting. The order was triggered by concerns raised by the NSE, culminating in a comprehensive SEBI investigation.

(With inputs from agencies.)