I trust this message finds you well. I am currently conducting research on listed Indian companies suspected of engaging in accounting fraud, specifically financial shenanigans. I am reaching out to seek your valuable insights and recommendations regarding such companies.
If any of you have knowledge about Indian companies that have been involved in accounting fraud, I kindly request you to provide the names of the companies, along with the year in which the incidents occurred. Additionally, if available, please share details on the methods employed or the extent of the fraudulent activities.
Your cooperation in this matter would be greatly appreciated, and your input will contribute significantly to the research. I look forward to receiving your responses and thank you in advance for your assistance.
Note - I already have complied a list of companies that did accounting fraud, please let me know if you have any more companies in addition to this list.
@FawaazTheInvestor
Could you brief us the purpose? Why you are looking for such information? Also give some brief about you on your education / experience etc?
Look for Indian reports by Veritas / Nitin Mangal (I have old Veritas reports…Nitin’s reports may have to be bought)
Many firms may now no longer be listed and that would also be a great subject of study. From memory I know Geodesic Ltd overplayed its hand (sources all over, I can supply some details), 8K Miles, later renamed Sekure Kloud…there have been discussion on this forum here 8K Miles and a link to an article I had written. There used to be a bank called Global Trust Bank promoted by Ramesh Gelli (if you can find info and share, that would be great)
Please go through Moneylife.in, Sucheta Dalal has done yeoman work in talking about many ‘shady’ companies.
All the best and hope we get to see your research once it’s done!
Just went through the video linked by @sudhakar_maradana which analyses Rajesh Exports. The analyst in the video never mentions Rajesh Exports as a fraud company nor does he strongly suggest any wrongdoing. He mostly gives his reasons for not investing in the company with a skin deep analysis of the last annual report. Does not even attempt to analyze the business model or the management quality in detail.
On a lighter note, definitely needs to add a few more colors in his presentation (he only catches the red flags at the moment).
My apologies if I gave the impression that I was recommending Rajesh Exports. I simply disclosed a holding that I had bought almost a decade back. I rarely sell so it’s still there (currently less than 1% of my portfolio). It’s kind of an experiment to see what happens if you simply forget to sell for a long time.
I was simply commenting on the shallowness of a content creator on YouTube. I can put out similar stuff about Tata Motors from their annual reports, but for what use? You never have a perfect company. Everyone is free to believe what they analyze and make decisions based on that.
You need something more to suggest accounting fraud, say a SEBI notice/investigation, directors/auditors resigning, etc.
Let us not hijack this thread. We can take this discussion on the company thread, if there is one.
“The term of Mr. Y. Venu Madhava Reddy as independent director was expired on March 31, 2020 and the Company considered appointment Ms. Asha Mehta as independent director in the board meeting held on May 09, 2020. Disclosures of the said expiry of term and appointment were required to be made within 24 hours of happening of events, however the disclosures of said expiry of terms and appointment were made with considerable delay on October 06, 2021.”
They changed independent director and informed exchange after 1year and were disclosing financials regularly.
Check the thread on other irregularities related to Rajesh Exports.
