Search Blogs

Finance Forum India

Share your thoughts on finance education, economic developments, capital markets movements or your professional experience in the field of finance.

Are you interested to blog on financial issues? If yes, please send us an email at: info@daulatguru.com

Reebok India accuses former top execs of $157 mln fraud

Reebok India, owned by Germany's Adidas (ADSGn.DE), lodged a police complaint against two former top executives accusing them of fraud that had led the company to lose 8.7 billion rupees. The alleged fraud would be the most high-profile corporate scandal in India since 2009 when Satyam Computer's former chairman and founder Ramalinga Raju revealed that the company had overstated profits and falsified assets for years. Reebok India is accusing former India Managing Director Subhinder Singh Prem and former Chief Operating Officer Vishnu Bhagat of financial wrongdoing, said police officials in Gurgaon, where the complaint was filed. "Our criminal complaint has been...
Continue reading
1624 Hits
0 Comments

Did LIC break any Sebi norms in its purchase of ONGC?

Let’s say you are one of India’s biggest business promoters. You know your company is planning to make an additional offering of shares a few weeks down the line, but the market is tepid. In order to get a good price, you ask a group company to start bidding up your shares in the market so that the IPO will fetch a better price. Which rogue promoter is that? But this is exactly what the Life Insurance Corporation (LIC) has done before the government’s offer for sale of ONGC shares (a.k.a. auction) which ended in a controversy last week. According to...
Continue reading
1229 Hits
0 Comments

DLF inflated asset base via dealings with DAL: Veritas

A report from investment bank Veritas Investment Research on DLF saw the stock tanking 5.17% in trade yesterday. The report alleges that the debt-laden property developer has been cooking its books for the last four years with large amounts of financial misreporting. In an interview to CNBC-TV18, Neeraj Monga, the author of the report hammers DLF saying he doesn't buy the realtor's accounts. In his report titled 'A Crumbling Edifice', he raises doubts about the company's disclosed book equity and asset base. You may read: Veritas aims gun at DLF; says co may have to recast loans The Veritas report alleges DLF inflated sales...
Continue reading
1315 Hits
0 Comments

Sharp rise and fall in share price of Kwality Dairy India; Brokers see foul play

MUMBAI: A penny stock that gained 132 times in less than 18 months is back in news, but for the wrong reasons. The sharp rise and the subsequent fall in the share price of dairy and food processing company Kwality Dairy India (KDIL) has raised eyebrows, with market participants suspecting foul play in the counter. Even though there were no corporate announcements that could have adversely impacted the stock, the share price fell almost continuously, after touching a high of Rs 189 in October. From around Rs 1.50 (after adjustments to corporate actions) in October 2008, the stock rose to over Rs...
Continue reading
1542 Hits
0 Comments

Satyam: Rs 7,000 cr fraud, and Rs 5 lakh fine for auditors?

Can the penalty for aiding and abetting a Rs 7,000-and-odd crore fraud be just Rs 5 lakh and a debarment? That, incidentally, is what the Institute of Chartered Accountants of India – ICAI, the audit profession’s self-regulatory body  â€“ has fined C Ravindranath and P Sivaprasad, employees of Lovelock & Lewes, an affiliate of Price Waterhouse India, for their role in the Satyam Computer Services fraud perpetrated in cahoots with the promoter, B.Ramalinga Raju. ICAI has debarred them from practising as chartered accountants by removing their names from the institute’s register. A BusinessLine report quotes ICAI President G Ramaswamy as saying: “We are proactive in taking action...
Continue reading
1355 Hits
0 Comments

How Pentamedia Graphics Ltd fooled investors, sold assets

New Delhi: Pentamedia Graphics Limited was once one of India's largest information technology companies. But today, Pentamedia Graphics Limited is "limping" on, with combined revenues of Rs 19 crore, a fraction of the more than Rs 1,000 crore it generated during its heyday. Pentamedia Graphics and its promoters fooled investors and stripped the company of its assets but still continue to hold on to prime land worth Rs 2500 crore. The company's stock hit a high of Rs 2,130 in February 2000, but are now trading at around Re 1. Pentamedia Graphics was also barred from stock markets in 2005 for manipulation...
Continue reading
1838 Hits
0 Comments

Olympus Urged to Purge More Executives

Olympus Corp. (7733)’s admission that three of its top executives colluded to hide losses from investors fails to address the roles played by other officials, according to the company’s biggest overseas shareholder. The Japanese camera maker’s shares slumped 29 percent yesterday after it reversed weeks of denials that there was any wrongdoing in past acquisitions. The company fired Executive Vice President Hisashi Mori over his role in covering up the losses with former Chairman Tsuyoshi Kikukawa, who resigned last week, and said auditor Hideo Yamada would step down. Olympus’ biggest overseas shareholder is now demanding investor relations head Akihiro Nambu go...
Continue reading
1582 Hits
0 Comments

Pyramid Saimira scam: How our business media was taken for a ride

It’s not new. Our business media is routinely taken for a ride by corrupt businessmen and their PR hatchetmen. However, this case is a class apart. On December 21, Business Standard carried a news report, which was faithfully “followed up” by other business newspapers in Mumbai and the rest of the country. The report centred around a certain letter, purportedly written by markets regulator Sebi (Securities and Exchange Board of India). The letter was addressed to Pyramid Saimira, a Chennai-based theatre chain. The letter asked the promoters of the company to make an “open offer” to the shareholders of the company....
Continue reading
1060 Hits
0 Comments

Satyam Chief Admits Huge Fraud

Satyam Chief Admits Huge Fraud Adeel Halim/Bloomberg News Ramalinga Raju, chairman of Satyam Computer Services, resigned Wednesday after disclosing he had systematically falsified accounts of the giant outsourcing company.     NEW DELHI — Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune 500 companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the industry into turmoil. The chairman, Ramalinga Raju, resigned after revealing that he had systematically falsified accounts as the company expanded from a handful of employees into a...
Continue reading
1383 Hits
0 Comments

The fall-out from Enron

   The shock waves from the collapse of Enron, a Texas-based energy-trading giant, are continuing to be felt by banks and their regulators, the accountancy profession and credit-rating agencies, as well as by politicians who benefited from the company’s past largesse THE bankruptcy of Enron—the world’s biggest-ever corporate failure—has left no one looking good. Auditors, who successfully fought off tougher regulation last year, will find it harder to do the same now. Rating agencies were left behind by unfolding events. Enron’s long-term bankers are nursing hundreds of millions of dollars of losses after failing to see the gathering storm. And everyone...
Continue reading
1218 Hits
0 Comments