Subhiksha in another soup, this time it is audits

Mumbai: Chennai-based retail chain Subhiksha, which has been in news since October 2008, is in yet another controversy.

Renuka Ramnath, MD and CEO of ICICI Ventures, said in a press conference that Subhiksha has been unable to complete its audit procedure and hence it could not come out with an initial public offering (IPO).

Subhiksha’s promoter R Subramanian has pledged shares worth Rs 50 crore with ICICI Ventures. The latter has an exposure of Rs 106 crore to the crisis-stricken retail chain.

Ramnath stated that they have no controlling rights in Subhiksha but they have 23 per cent shareholding in the retail chain. She added that they do not know the extent of crisis, liabilities or statutory dues of Subhiksha and want leading and credible firms of independent auditors to investigate the accounts of the company.

Ramnath went on to say that till September 2008 no balance sheet was shown to them and they had only seen the profit and loss. As On March 2008, Subhiksha had a debt of Rs 245 crore, she added.

The beleaguered retail major’s inventories for year ended March 31, 2007, was at Rs 279.32 crore, Ramnath said.

As on March 2008, Subhiksha’s net worth is at Rs 18.36 crore, she added.