Winsome Diamonds and Jewellery Ltd has submitted a copy of the investigative audit report done by Kroll Advisory Solutions and forensic audit report by Ernst & Young, which it received from unknown sources, to India’s Bombay Stock Exchange (BSE). The 2013 Kroll report had alleged Winsome Diamonds to conspire to defraud Indian banks, leading to banks declaring the company and its promoters as ‘Wilful Defaulters’. However, according to Winsome Diamonds, the Kroll report contained incorrect and fabricated info to malign company’s and its promoters’ reputation.
The report, which was commissioned by a foreign bank, was initially made available only to certain sections of the media to run a smear campaign and a copy of the same was not given to Winsome Diamonds itself despite repetitive requests. Further, Winsome Diamonds and some banks had questioned the credibility of the Kroll report. Around the same time, a forensic audit was conducted by global auditing and consulting firm Ernst & Young but the exercise apparently did not generate any negative findings either against the company or its officers. This report too was not made available to Winsome Diamonds by the lending consortium.
Through a letter dated July 21, 2016 to BSE, Winsome Diamonds has furnished scanned copy of both the Kroll and EY report. The said reports are available here – http://corporates.bseindia.
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