Amit got the attached letter from MCA filings on 8K Miles Media Pvt Ltd, which is on the auditor’s letterhead. 8k Miles - Resignation Letter.pdf (258.4 KB)
I called up Mr Haresh (on the number in the letterhead) to verify. He picked up the phone and identified himself but disconnected the call when I broached the topic.
GHG Associates and its auditors will be more worried about its reputation (being small and relying on their word-of-mouth than a big-4 than can rely on its brand) and most likely will also have complained to RBI. Since the letter is dated April 30, there is some chance that they got to know of the alleged forgery in the course of their statutory audit of 8K Miles Media Pvt Ltd.
To say that the company involved is not the listed entity, but only have shared common promoters (allegedly forging) who control both firms, hence we are possibly safe, is quite self-delusional.
Based on trading volumes, deliveries, coupled with timing of corporate announcements, and movement to 100% delivery, I suspect that the large non-institutional shareholders have offloaded their shares (I think more than 10% of total outstanding shares) between 01 July and 26 August (~ when it became 100% delivery) and the counter parties have largely been genuine investors. The two institutional shareholders have a small %age of their AUM and they would rather mark to market than sell it down, for NAV purposes.
Thus, the new guys left with the shares are for the most part, genuine investors, and a heavily increased number since June 30, who may not be aware of the drastic impact of reduced market making with 100% delivery. After a spate of bad news, ‘prisoner’s dilemma’ would have set in (thanks to @phreakv6 for seeding this in my head) and there is a rush to exit before ‘anyone else does’. Now as more people think and act on the same, it pulls down the price creating more number of people wishing to exit, in a downward spiral and creating a one sided trade.