Future unit cancels plans to sell assets overdue approval

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Future Supply Chain Solutions (FSCL), part of the beleaguered Future Group, has canceled plans to sell some assets, including warehouses, following a delay in obtaining approvals.

The company’s board of directors passed a resolution rescinding the earlier proposal to sell or divest its business due to the expected delay in obtaining approvals (other than from shareholders).

As a result, the proposal to sell these businesses has now been rescinded by the board. The company would explore other opportunities to rehabilitate these business operations, FSCL said in a regulatory update.

On July 26, FSCL’s board of directors had approved the sale of certain assets, which was subject to shareholder and lender approval.

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Earlier, FSCL said that five creditors – DHL E-commerce (India), Shakti Cargo Movers, Ramdas Logistics, Shreyansh Packaging and BG Cargo and Logistics – moved the bench to the National Company Law Tribunal in Mumbai for alleged default. The company is taking all necessary measures to defend itself, she said.

In August, the Sebi launched a forensic audit of the financial statements of two Future Group companies, Future Retail and Future Supply Chain Solutions, due to concerns over improper disclosure of financial information.

The market regulator had also appointed Chokshi & Chokshi LLP, an accounting firm, as forensic auditor, the companies had informed the exchange in separate statements.

“FSC’s audit will cover related party transactions with FRL during the above review period. FSC should extend its cooperation to forensic auditors during the audit process,” he had said, adding that the FSC review period would be fiscal years 2019-20 to 2021-22.

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