When the game is up, lot of pretending does go on. Does Suresh Venkatachari resigning as CEO of 8K Miles Media change anything? He was the CEO after all when the fraud happened (Still is listed as CEO on their website). Is it possible the CEO did not know his auditor resigned? Its a bit hard to believe.
I have seen this in the past in Fiberweb where the CEO pretended he did not know a company he himself founded. I won’t be surprised if Suresh Venkatachari’s picture disappears from the 8k miles media website and he claims to have no links to 8K Miles Media. But the truth is that there is way too much linkage. The MCA website lists Ramani’s 8kmiles.com address as the official email address and this Ramani was the CFO of 8k Miles.
So if the CFO has gone rogue and that’s why he is selling shares of the listed entity, then why will he lend that money back to the company? That should at least mean that Ramani and Chari are in good terms? And that should mean that everyone’s in it together? The auditor alleging fraud is in good detail of the dates, number of transactions, branch, amount, where the money went etc.
If these businesses don’t have good standalone business based out of India - Where is all this money that is being transferred abroad come from? As always - follow the money and the whole thing will unravel. I surmise that the money came from selling 8k miles shares! This is similar to what happened in Lasa. The two promoters claimed they were raising cash to pay off debt and that’s why they were selling equity while poor retail bought the story and held on while the promoters dumped at hefty valuations. Where did all that money come from to pay debt? From the shareholders of course. That’s the main source of income for 8k miles here isn’t it? Now does it make sense why money is being loaned back and why money is being siphoned off without the auditor’s notice abroad? Also notice the dates of the alleged fraud transactions - they are in the same dates either after or during the time Ramani was selling shares. If this was for legit reasons of funding acquisitions, they could have done this above board and needn’t have forged anything? There’s just way too much smoke here for there to be no fire.
Today a 100 Cr, say less than the 120 Cr amount Ramani made by selling part of his stake would almost fetch 16% of the company - that would take the promoter’s stake to 75%. Am certain when their own company is available for filthy cheap valuations, they wouldn’t be running to buy some random company abroad? I wouldn’t, if I thought my company was valuable.