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Future unit cancels plans to sell assets on approval delay

On July 26, FSCL’s board had approved the sale of certain assets, which was subject to approvals from shareholders and lenders.

Future unit cancels plans to sell assets on approval delay
he company would explore other opportunities for rehabilitation of these business operations, FSCL said in a regulatory update.

Future Supply Chain Solutions (FSCL), a part of the beleaguered Future Group, has revoked its plans to sell certain assets, including warehouses, following a delay in getting approvals.

The company’s board has passed a resolution rescinding the earlier proposal to sell or dispose of its business undertaking in view of expected delay in obtaining approvals (other than that of the shareholders).

Accordingly, the proposal for sale these businesses has now been called off by the board. The company would explore other opportunities for rehabilitation of these business operations, FSCL said in a regulatory update.

On July 26, FSCL’s board had approved the sale of certain assets, which was subject to approvals from shareholders and lenders.

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Earlier, FSCL had stated that five creditors — DHL E-commerce (India), Shakti Cargo Movers, Ramdas Logistics, Shreyansh Packaging and BG Cargo and Logistics — had moved National Company Law Tribunal’s Mumbai bench over alleged default. The company is taking all necessary steps to defend, it had said.

In August, the Sebi had initiated forensic audit into the financial statements of two Future Group companies, Future Retail and Future Supply Chain Solutions over concerns of improper disclosure of financial information.

The markets regulator had also appointed Chokshi & Chokshi LLP, a chartered accountant firm, as the forensic auditor, the companies had informed the stock exchange in separate statements.

“Audit of FSC will be with respect to the related party transactions with FRL during the above review period. FSC shall extend its cooperation to the forensic auditors during the audit process,” it had said, adding the review period for FSC would be financial years 2019-20 to 2021-22.

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