March
11, 2011
PR No. 040/2011
ORDER IN RESPECT OF MR. K. S. KASIRAMAN, MR. K. NATARAHJAN AND MR. G. RAMAKRISHNAN IN THE MATTER OF PYRAMID SAIMIRA THEATRE LTD.
Shri M.S. Sahoo, Whole Time Member, SEBI, has passed an Order dated March 11, 2011 in the matter of Pyramid Saimira Theatre Ltd. (PSTL) restraining Mr. K. S. Kasiraman, Mr. K. Natarahjan and Mr. G. Ramakrishnan from being an independent director or a member of audit committee of any listed company for a period of two years from March 11, 2011.
The order states that PSTL inflated its profits and revenues by fictitious entries in its accounts, disclosed the same in quarterly and annual results for the financial year 2007-08 and thereby misled the public in their investment decisions. The order also states that, Mr. K. S. Kasiraman, Mr. K. Natarahjan and Mr. G. Ramakrishnan, who were independent directors of PSTL and members of its audit committee at the relevant time, have failed in their duty of care as an independent director and also they have failed to review, as members of the audit committee, the internal control systems, which generated misleading financial statements. All these facilitated the company to make false and misleading disclosures and thereby created artificial prices and volumes in the securities of PSTL in the market, to the detriment of innocent investors.
Mumbai
March 11, 2011
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