Future Enterprises slides following CFO's arrest for custom duty evasion

Future Enterprises dropped 5.44% to Rs 32.15 at 15:06 IST on the BSE after the company said its chief financial officer was arrested for allegedly evading customs duty worth Rs 14.58 crore.

The announcement was made on Sunday, 14 July 2019.

Meanwhile, the S&P BSE Sensex was up by 130.61 points or 0.34% to 38,866.08.

On the BSE, 67,000 shares were traded in the counter so far compared with average daily volumes of 16,000 shares in the past two weeks. The stock had hit a high of Rs 32.8 and a low of Rs 29.55 so far during the day. It hit a 52-week high of Rs 51 on 10 September 2018 and a 52-week low of Rs 29 on 24 May 2019.

The Directorate of Revenue Intelligence (DRI) arrested Dinesh Maheshwari, executive director and CFO of Future Enterprises (FEL), for flouting import rules that allow duty-free shipments of certain items from Bangladesh under the South Asian Free Trade Area (SAFTA).

FEL said it has received confirmation from its vendors, who are supplying goods from their facilities in Bangladesh that they have complied with the SAFTA Rules, 2006 and obtained SAFTA certificates from relevant regulatory authorities. They assured continued support for completion of proceedings with authorities. Further, FEL has recently also deposited part of the disputed amount with the authorities. FEL is engaged with its lawyers and tax experts to place the full records before the DRI. FEL and its officers are cooperating fully with the department and remain confident that the said matter will be resolved quickly to the satisfaction of the department.

Future Enterprises reported a net profit of Rs 46.33 crore in Q4 March 2019 compared with net loss of Rs 46.73 in Q4 March 2018. Total income rose 28.7 % to Rs 1226.13 crore in Q4 March 2019 over Q4 March 2018.

Future Enterprises develops, owns and leases the retail infrastructure for the Future Group. The company also holds the Group's investments in subsidiaries and joint ventures including insurance, textile manufacturing, supply chain and logistics.

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