I don’t think the people defending the company here were genuine investors. As I noted at the time, many of them had joined VP recently, only commented on this one thread, etc.
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I also feel that some of these messages by exclusive defenders of these fraudsters have been deleted. This is not a new thing and funnily my messages warning everyone about the promoters were marked offensive. Unfortunately this is not the only thread on this forum where this has happened. I recall Vakrangee, PCJ and the most on Yes bank.
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It is a deep rooted problem on Valuepickr forum. All the investors (including the big ones) end their posts with “Invested and biased”.
In my opinion an honest disclaimer should be:
I have invested my hard owned money. I am very open to an opposite view point. Please point out the issues, I would be the first one to exit my position. Invested, hence not biased at all.
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Terrific insight!
I think many CEOs think of accounting as an opportunity rather than as a means of presenting true and fair affairs. When that is mixed with a lack of understanding of accounting, their gaffe become obvious to folks well versed with the accounting language, but that does not stop them in the tracks!!!
With every passing year I get a deeper understanding of Buffett’s perceptive observation that temperament is more important than intelligence in investing. To be unemotional is very very tough, and mastering that is tougher than mastering financial analysis.
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#diffsoft
Accounting skulduggery is rampant in India.Not just the CEO who is involved.It is the whole ecosystem-the independent directors, the CFO, the BoD,the internal/statutory auditors who all are active participants. DHFL and ILFS are recent examples. A decade back a few managements were considered suspect and the rest were considered as honest.Now a vast majority is suspect and a few are considered honest.
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Just curious why retail investors are in love with obvious fraud companies like these! 8k is a confirmed fraud case …atleast from early 2018 .
Before I decide to buy any co…I make it a point to read thru all the posts n valuepickr forum…honestly this forum has saved me from losses by highlighting these fraud companies quite early.
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It has become a popular fallacy that retail is in love with loser stocks.
For every seller there is a buyer.
When institutions run out, retail is blamed as the buyer.
There is a right price, even if the “going concern” is liquidated.
Satyam became Tech Mahindra, who was the loser there?
Here, of course the fraud was obvious. 
Satyam Tech Mahindra is clearly a one off / exception to the rule . There is no white knight on the radar to rescue this 8k mess .
My personal experience is that retail investors are always late to these parties… and end up twiddling thumbs. I have so many smart/ highly knowledgeable friends n my circle still accumulating the likes of DHFL, Kitex etc. trusting them to be turnaround candidates … multiple biases at display ( hindsight, survivorship, it’s diff this time etc.) 9/10 times this story has a familiar ending !
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There seem to be quite mature and informed investors in the Kitex thread. Compared to Sintex, DS Kulkarni, Talwalkars, Meghmani etc. the business is not that bad, seriously.
DHFL might be a good punt, if it survives. No serious investment thought there.
8K Miles was a setup from the beginning. A tiny Satyam, with no value to salvage or nobody interested.
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The company has submitted to the exchanges the impact of auditors qualifications on the financial results.The company states that since the auditor has not quantified the the impact of qualifications , there is no changed in the declared financials.
The auditor in reply states that since various documents were not given or explanations not offered he is unable to quantify the impact of various qualifications on the results.Merry go round.
The auditor has stolen a step over the company as he states that after bringing to the notice of the audit committee the fraudulent sales/profits, the turnover was reduced by Rs170 crs(20%).
Now let us see how the exchanges and the government responds.
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Is there a public forum where we can all meet and file a Public Interest Litigation against these 8Kmiles frauds?? Please advice … How about a whatsapp group … Text me on +91-9591619701… we can form a group and approach a police station
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Look at what the latest AR says. The CEO went about saying he never pledged the shares or sold them.He claimed he had kept the shares in a DP account with them and were sold illegally.
Secretarial audit report
The Company had made intimations to Stock Exchanges
under SEBI (SAST) Regulation, 2011 and SEBI (PIT)
Regulation,2015 on Pledge and sale of shares of the
Promoter belatedly.
Reply by Management
The Company will comply & adhere to all regulations
within the timelines in the forthcoming years.
This will become lesson for other fraudsters.
Do you think that would be prudent use of resources of an investor? It’s like throwing good money after bad. India has no legal framework for class action suits like US. Retail investors are unlike activist hedge funds, who undertake this kind of activity.
On the contrary, retail investors have a huge advantage over promoters, their agility. They can dump their entire holding at the first sign of trouble in a single day, unlike the promoters. Let’s use that to our advantage.
The market does not lack opportunities. An investor just needs to keep his eyes, ear and mind open.
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It’s an excellent initiative and I would suggest to talk to Moneylife foundation if they can guide and support you and other retail investors who got cheated.
The best way to punish fraud promoters is to takeover their assets completly. When shareholders dump their shares, they will only be making other investors scapegoats.
SEBI should have a clause whereby promoters shares are completly liquidated at zero value from the main company, associate companies and subsidiaries, even through independent entities. This also includes all bank accounts under the group.
I am sure, there will be employees in the company who do have a genuine talent. Maybe the next 10-15 major shareholders by number of shares can form a BOD along with these talented employees and try to salvage the company.
The concept is simple, you own a part of the company. Rather than cry over it, better make it work.
SEBI can also involve ARCs and investment funds in such a strategy. Similar to how RBI has independent directors on the board of banks under PCA.
Disc: not invested. But am frustrated by the amount of frauds in such companies.
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Great insight ,I stayed away from this fraud, luckily.I stopped watching CNBC after this saga n one I remember Great P.Gaba! recommend RS Soft at 60 odds to reach 160!!! against all obvious reasons to sink in.
Deloitte resigns as an auditor
I was expecting them to resign since Apr’19.Balaji, the partner knew about the massive falsification last year also but kept quiet as the the statutory auditor had no authority to question the local auditor/ figs given by the management.This year after amendment to LODR he knew where to look for suspicious entries and the management made all effort to deny him access.The serious qualification of " inability to certify if the company was a going concern" sounded the death knell.No auditor writes that unless he has serious reservations on the integrity of accounts and cash flow.
Rs300 crs capitalised this year as “intangible asset” is surely the black hole in the books.Having reported suspected fraud to the central govt, it was inappropriate for Deloitte to continue.Want to see how SEBI deals with the US subsidiary which is private, unlisted and all assets parked there.Even this year the parent has invested Rs26 crs in the US subsidiary.The US subsidiary has no ability to raise any money in US as questions will be asked on the functioning and figures.The DHFL saga plays again.
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