CORPRATE FRAUDS.

In most of govt. dept. frauds are done by accounts officer by misappropiating, wrong booking,etc funds and results in shortage of funds for particular projects effecting the project incomplete for want of balance funds,and since he used to be central govt. employee,put all the responsible over his boss of state govt.

DO ADD AS MANY FRAUDS THAT YOU HAVE SEEN DONE BY THE COMPANIES SO THAT THEY COULD BE DISCUSSED AND RULES FRAMED ACCORDINGLY.

converting loans into equity.

the big group floats new venture and encash on the groups reputation and allow the smaller companies to languish after collecting funds.at high premium.

they give sub contract to the sister concerns and inflating turnover same turnover gets reported by two companies.for example reliance power giving order to reliance infra..the investment activity is reflected in reliance power and it gets reported as project executed in reliance infra.

companies folllow a policy of least written communication they do not reply at all.

merging companies to avoid sales tax.excise duty just to term it as interdepartment transfers.

getting your companies suspended from listing on a purpose.

not positing dividend warrants.

declaring dividend out of capital or reserves just to show a rosy picture.(window dressing or keeping share holders happy)

the companies buy huge lands on the funds collected and do not show good results and quitely sell of company lands.say after a decade of hibernation and bad results by this time the landed property has appreciated many folds.since there is no inventory of landed property some lands and property of the ocmpanies are sold of and money encashed .

some companies sell of there entire product to a sister company and the profits are accounted for in that company.the publicly listed company is denied the rightful profit.

some companies have two bank accounts and one set of bank accounts are not shown atall.

companies send letters just to fullfil the requirement of law or regulation and do not follow it in sprit.

cheating of small amount over a large number of people .generally it is not worthwhile to fight for small amounts and you or maximum number of people would give up th efight somewere.

banks charging more interest and giving less interest.harldy a few people check and repot back to bank.

corporates raising 13 bills in a year if the monthly bill cycle .

raising rates after intitial offers.

useing terms like indicative returns suggestive returns the likely return and would show you a huge amount.

some companiies in the past have issued deep discount bonds and have availed put options to suitethere benefit.at the cost of investors.

showing you dreams and short changing you.

INFACT THE GOVERNMENT SHOULD GO THRU THE NOTICES OF THE COMPANIES AND IF THEY ARE ACTING IN A MANNER WHICH COULD LEAD TO A FRAUD ENABLING ACTIONS SHOULD BE TAKEN immediately.

SINCE ALL ACT THAT THE DIRECTORS DO SHOULD BE EITHER RATIFIED OR GIVEN PERMISSION TO BY SHARE HOLDER.

GOVERNMENT COULD HAVE A SET OF EXPERTS WHO COULD LOOK INTO SUCH NOTICES.

Yes, I agree that  nowadays corporate frauds has increased a lot these days just to showcase a better P&L and Balance Sheet to the analyst so that they advise the investor to invest in that company as per the window dressed B/S. Just in case of Satyam noone could ever belive that such a genuine personality of ramlinga Raju could ever do such fraud with the investors.

Whenever these companies come out for a public issue suddenly good news start flowing through media which was never been broadcasted. Lot of advertising costs on print and electronic media instead if these funds would be used in some productive process instead of spending heavy on advertisement. Just take an example of Adani Power issue, during the issue period lot of advertisemnt and good news flow on media happened and even market was kept intact with liquidity in the maerket. But the moment the issue got over the market too lost its one way direction.

I agree with u saboo, i invested too much amount in shiv garh resort, but was shifted to some sister concern and now the sistern concern is not tracable, main invested firm takes no responsible.

Yes, I also agree with this . After the satyam scam I think we should take this more seriously and every effort possible for checking cooking of books should be taken. Also there should be provisions to check unjustifiable salary and perks enjoyed by the management. Forensic accounting and fraud audit should be given due importance.

Insider trading and the advantage enjoyed by the management in influencing share price in case of management buy outs etc should be considered.

Some of the companies are regularly changing accounting periods from 12 months to 15 months and then to 9 months etc. to stuff up their profits OR to show losses.

Some of the cases we see that companies show losses, but the management would be vehimentally enjoying personal profits through kick backs and misappropriations.

Companies like ABCL show losses and the bankers would go to the verge of bankruptcy.

Govt. though has appointed SEBI, Company Law Board etc to monitor this, hope sufficient powers are not given to them. e.g. if a company doesn't declare its balance sheet in time, it will be delisted - but the sufferer is the investor. Government should think of appointing some private body to govern this.