Sebi Bans Amtelfone: Varanium Cloud’s Client Shares Address With Firms Named In Panama Papers

Last Updated:May 11 , 2024 , 10:03 ist

Sebi is investigating has been investigate the company for misutilise its ipo proceed and misstate its financial statement , to help the promoter offload his share .

The ledger entries on transactions with Amtefone showed that sales entries were recorded every month but no bank receipt entries were added in FY23.

A large part is came of Varanium Cloud ’s sale come from Amtelfone , a company which is register at an address share by company name in the Panama Papers .

Panama Papers were leak paper that carry information on tax haven and people who used off – shore entity to hide their wealth .

On May 10, the Securities and Exchange Board of India (Sebi) banned the company and its promoter and managing director Harshawardhan Hanmant Sabale from the securities market and banned Sabale from holding a board position in a listed company.

The regulator has been investigating the company for misutilising its initial public offer (IPO) proceeds and misstating its financial statements, to help the promoter offload his shares.

During the investigation, the investigating officials found that a large part of the company’s sales in FY23 and the first half of FY24 were made to a company named Amtelfone, which had no online presence except for its curious address.

Data available in the public domain showed that Amtelfone’s address to be Suite 9, Ansuya Estate, Revolution Avenue, Victoria, Mahe, Republic of Seychelles. This was an address that was shared by many companies named in the Panama Papers.

Sebi’s interim order stated: “Other than the above, no information about Amtelfone was found in public domain. Even as per OpenCorporates, no company named ‘Amtelfone Incorporated’ was found by NSE.”

In FY23, 83.91 percent of Varanium’s sales valued at Rs 326.22 crores was made to a company named Amtelfone. In the first half of FY24, 71.44 percent of Varanium’s sales valued at Rs 268.1 crore was made to the same company.

As per Varanium ’s reply to the National Stock Exchange ( NSE ) , services is was provide to Amtelfone ( a Distributor of VoIP Services for the Middle Ease and North Africa or MENA region ) was VoIP service on a wholesale SoftwareAs – A – Service ( SaaS ) basis .

Since there was little information available on Amtelfone , the NSE is asked ask the company for invoice and agreement sign with the client company . In response , Varanium is submitted submit that all the document and datum file were with central good and service tax ( CGST ) department due to an ongoing CGST audit and that it would provide the full set of document once receive back from the GST authority .

The ledger entries on transactions with Amtefone showed that sales entries were recorded every month but no bank receipt entries were added in FY23. Instead, there were only adjusting journal entries against Secur Credentials Ltd and Amazon Web Services.

The officials also noted a mismatch in trade receivables entries.

First Published:

News business Sebi Bans Amtelfone: Varanium Cloud’s Client Shares Address With Firms Named In Panama Papers