I keep referring this thread to control irrational exuberance n specific stocks … helps me approach stuff with a bit of sceptical n balanced approach . Wonderful points @phreakv6 and @diffsoft.
The frauds have an AGM.
DATE : 30th November 2019
DAY : Saturday
TIME : 10:30 A.M
PLACE: The Raintree, St Mary’s Road
Chamiers Hall, 120, St Mary’s Road,
Alwarpet, Chennai 600 018.
PS: Exited a week after delisting warning. Thanks to this forum!
As with all white-collar criminals, I find it difficult to believe the super-normal greed which drives such already affluent people, “for a few pennies more”, to be ready to face after all, the consequences of crime. (or they trust jungle raj of hindustan?)
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8k miles published its June and half yearly results.https://www.bseindia.com/stock-share-price/8k-miles-software-services-ltd/8kmiles/512161/. Is there any improvement in the results? It looks so. Any comment.
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Business always looked decent/legit, the question was promoter being a d*ck. Now people are already posting publicly how he actually asked methods from them to better manipulate accounts. Deloitte red flagged. Further no comments! Question remains, will promoter ever share wealth? (will this list again?)
BTW Q2 results are still missing.
Look at the notes to accounts.
The auditor has the temerity to state that he has not complied with Sec33(8) of LODR and hence he has not reviewed the results of the subsidiaries whose accounts are consolidated in the accounts.
Thus the results continue to be a sham as the subsidiary figures are given by the management though from Apr1,19 it was mandated by SEBI that the auditor must review it and be held responsible.Deloitte resigned because they were not allowed access to subsidiary accounts and they knew it was not credible. Rs.72crs given to the media company of the promoter becomes a bad debt.
The accounts are not signed by Mr.Suresh for the first time and the management’s response to audit notes are also not signed by CEO/CFO but by the company secretary.
Rs486 crs of of “so called reserves” accumulated over the years has been written off.The intangible assets (software) was a sham.
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The sham was evident years back. Surprising that people still spend time and energy in this counter.
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Hi
I sent a mail to the company secretary after their results, asking for details about the doubts I had.
:
These are the details I requested
Sir
I am a shareholder of your company. I request you to answer the following:
In the financial results of 2019-20 released today, it is stated that an amount of Rs. 52064.55 lakhs was written off internally generated software. It is mentioned that such a decision was based on recommendation of technical experts and evaluation of expected foreseeable economic benefits.
1.Please furnish the details of the technical experts (Name, address and email) who made this recommendation.
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Also furnish the reports (or whatever it is called) in which such recommendation was made
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What sort of economic benefit do the board of directors foresee by writing off Rs. 520 crores in one go?
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Why was this move not shared with the shareholders in the Annual General Meeting or in the Annual Report or during the announcement of previous quarter results?
In the financial results of 2019-20 released today, it is stated that an advance made towards a target acquisition of Rs. 4505.80 lakhs was written off.
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Which was the target to be acquired? Furnish Name, Address, email address and nature of business.
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Furnish the bank statement showing the payment of advance amounting to Rs.4505.80 lakhs
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Furnish the minutes of meeting of the board meeting and the board resolution in which the acquisition of the target was discussed and approved
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If a target acquisition did not happen, any amount paid must be received back. Why is it being written off?
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What were the steps taken to get back the amount paid for acquisition before writing it off?
In the financial results of 2019-20 released today, it is stated that an receivables amounting to Rs. 5923.60 lakhs was written off due to unforeseen economic conditions caused by COVID-19.
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Kindly furnish the party-wise breakdown of this Rs.5923.60 lakhs
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Kindly furnish the ledgers of all the parties mentioned in query 10 for FY 2018-19 and FY 2019-20.
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What were the steps taken for collection with respect to these receivables? Since when were these balances outstanding?
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They replied me with the following:
Dear Shareholder, we acknowledge your email and thank you for writing to us. As part of our internal governance, we need to maintain list of shareholders who seeks financial information about our company. Hence, we would request you to furnish the following details.
Name of the shareholder:
DP ID:
Client ID:
Registered Mobile No:
Registered e-mail id:
I gave all the information they asked
Few days later, they send me this:
"Dear Shareholder,
We are in receipt of your queries on the recently published financial results. We wish to clarify that we are not supposed to share any additional Financial information with individual shareholders more than what has been already shared in the Audited Financial statements released to the exchanges on 30th Jul, 2020.
Appreciate your understanding and seek your support."
I firmly believe that a company must be held accountable by the shareholders for the results. The information I have sought are all only factual. But they are stonewalling me. I request guidance from this forum. I want to escalate the issue and seek the help of regulator like Ministry of Company Affairs or SEBI. Can somebody help me?
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You would need the tenacity of a bull dog. I know someone who is after their case. If you have suffered serious losses and want to pursue more for bringing the crooks to justice than to recover you money, I can put you in touch with him.
Please PM me if you are ok with that.
Warm regards,
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The loss is manageable. However, it is not about the quantum of loss. It is the fact that despite the regulator’s presence and umpteen rules and regulations, people cheat with impunity. I willing to fight.
I will PM you.
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I agree with @Keerthi_Narayan. It’s not about the quantum of loss or the loss itself. Profit and loss are part of equity investment. It’s the matter of what these 8K Miles crooks and especially Suresh V has done. Hence these looters need to be brought to books else they will keep going the similar sprees uncontrolled. Wondering
- How can these crooks do the way they have cooked the books, siphoned off the shareholder money without any fear of law or regulators. What are the checks that regulators need to build in to avoid these corrupt practices.
- What are the avenues we can explore to file complaints, follow the matter legally and at least make these people answer if not pay for their sins.
It’s good @Keerthi_Narayan, that you are pursuing this. Would like to join you. Will PM you and @diffsoft.
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I had once complained against a listed company on SCORES system. They called me after more than one year by which time i had nothing to do with the company. When brokers like Karvy have held up payouts what can we expect from any regulator in India. In 8K Miles case regulator will claim helpless because of the overseas subsidiary etc. Bigger things like PMC in Mumbai, NSEL scam etc are still to be resolved. Unless and until some victim takes an extreme step, our regulators are least bothered.
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Suresh venketachari resigns as a managing director of company.
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They have declared Q1 results. Operationsl figures seem to be ok, but there is a huge other expenses figure every qtr, in the consolidated P&L and this is what is causing the loss. Does anyone know what this "Other expenses"constitutes?
Striking similarity between DHFL and 8k miles
1)Chaturvedi and Shah resigns as auditor of DHFL accusing it of fraud and Deloitte is appointed.
GHQ associates resign as auditor of 8K accusing it of fraud and forgery and Deloitte gets appointed.
2)Deloitte resigns and accuses DHFL of large scale fraud.
Deloitte resigns as auditor of 8K Miles and accuses it of fraud.
3)DHFL appoints DP Ostwal &Co to probe charges of Deloitte and he gives the co a clean chit.
8K Miles appoints a auditor(name and report not disclosed) but as per latest report he gives a clean chit on 19 of the 21 objections raised.
DHFL sinks after arrest of directors.8 K to follow soon.
Some interesting observations in AR
1)In 2018-19 8K capitalises Rs.325 crs of software development without providing details to Deloitte.(see Deloitte Audit report of 18-19).In 19-20 8K Miles writes off Rs525 crs of software developed and lying in its books over the years and knocks it off to zero.
2)It advances US$ 6500000 to a company towards buying its shares before Feb end of 2019 failing which the acquiree will retain US$ 500000 and return the balance US$ 6000000.Deloitte expresses apprehension over the deal(likely a co belonging to the promoters, to do transfer money in the sly).In 19-20 AR the auditor says entire US $ 6500000 written off(Rs45 crs).Handed over on a platter for not completing the deal. Daylight robbery.
3) The Indian listed company gives Rs33crs to 8K Sotware services the US subsidiary.The US subsidiary in turn gives a loan of Rs55cr to 8K media group in US.This was in 17-18,
In 19-20 the US subsidiary (8K Software Servces)writes off the entire Rs58.09 crs as irrecoverable from 8K Media group due to covid.
Covid started in Mar2019 but by March 31 the group has attributed everything to Covid to grant financial benefits to the private co owned by the promoter.
Some of the subsidiaries in 19-20
a)Health care triangle–Turnover -Zero
b)8K Miles softwareFZE-Turnover-Zero
c)Mentor Minds–Turnover-Zero
The 18-19 AR is an eye opener on how frauds are perpetrated authored by Deloitte and AR 19-20 is a cover up authored by K.Gopal Rao and Co.
BV down from Rs197 to Rs9.Receivables down from Rs237 cr to Rs50 crs.Liabilities down from Rs174crs to Rs150 crs. No institution holds shares and the public is going to be lynched.
GREAT LEARNING EXPERIENCE.
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And then the stock is hitting UC and surging like a rocket over last 6 months. Moderatos can flag this post, but my point is just to highlight how retail investors are being taken for a ride!!!
Maybe the promoters have set something up to offload shares and pocket gains from the rising stock market.
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So what if the stock keeps hitting upper circuit?Quote one figure from the audited report which justifies your opinion.
Thanks @esoteric for further analysis and pointing out the continuing hoodwinking of unwitting minority shareholders.
The one more striking similarity, that belongs to the realm of human nature is that, many shareholders owning the stock in either case were quite unwilling to budge much from their feelings for the stock, even after a detailed analysis of facts by other members. The speed and strength of rationalization that happens in the mind of a shareholder (called by endowment effect or whatever) is so quick that this is barely noticed by him, and in fact the attachment to the stock strengthens against such an opposite view!
Conscious acceptance of a possible validity of a disconfirming view is what is needed when you have bought into a stock. It is also the least wanted at the same time.
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I exited 4 years back.Last year Deloitte has made scathing reference to how they were prevented from looking at subsidiary accounts,very strong indications of fraud in the group and they have put in writing all the concerns.They were not even shown the report of findings of forgery as alleged by the previous auditor.
They resign.Their fees Rs45 lacs.New auditor appointed with a fees if Rs4.5 lacs.
The new LODR rules stipulate that the statutory auditory should review the subsidiary co results every qtr and every year. But the new auditor just makes a passing reference that the management is responsible for the accounts and the subsidiaries are audited by respective auditors.All the financial frauds are in the subsidiaries,which are unlisted.
All shares are held by retailers/ public and I wonder how they are hoping to make money.
Every year I read the AR to see the revelations and concealment- by the management and auditors.
I am sure the mgt will not be able to raise money again and wondering - even if the business is genuine- how they will grow it.
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