Build your professional network on facebook via our app Go to app
 
 
Posted in Community :

Financial Asset management

 

Organizations and balance sheets

Created by : Murugesan S, Sr. Associate, Kotak Mahindra  | 10 22 2008 17:29:54 +0000
Industry : Asset ManagementFunctional Area : Capital Management(Corporate Finance)
Keywords : Organizations Balance Sheets
Activity:  464 views;  last activity : 07 06 2010 20:18:09 +0000
Are the organisations and companies showing there correct balancesheet?
  
Share
 
 
  Rate : 
 
 
Favour Vs Against
1
 
 
 
 
6
1
4
Support   Support
 
Top Argument
3
0

In my career, I have the opportunity to analyse the Company's Balance sheets.  Data-wise, they used to give the rosy picture.  But the Auditor used to qualify the adverse conditions in his note, which everyone has to read.  The same are not visible for naked eyes.  One has to conclude his views accordingly.

Both the Company's management and the Auditors are to be blamed for this state of affairs.  The stock markets and Finance TV channels  want only up and up in the Company's balance sheet.  That is the reason, they change the depreciation calculation, valuation of closing stock, non-povisioning for bad and doubtful debts against Debtors to show more profit.  The recent example is valuation of  construction and land properties by realty companies.   These are vicious circle. 

 
By S. Balasubramanian, ?  10 27 2008 11:20:19 +0000
0
0
Yes, in my opinion there balance sheets are pretty much true. If they aren't then the growth which has been shown by companies would not had been made.
By Murugesan S, Sr. Associate, Kotak Mahindra  | 10 22 2008 17:29:54 +0000
0
0
The fall of GTB and Satyam are naked examples
By Marla Prashant, Head/VP/GM-Corporate Planning/Strategy, Sumedha Fiscal Services Ltd.  | 01 14 2009 16:28:31 +0000
0
0
In my opinion they had been showing such data so as to create money for the company to run. The debts that are been made by the company is done only by IPO and other things but the company does not have any money with them as assets.
By Gaurav Saha, Sr. Associate, Morgan Stanley  | 10 22 2008 17:35:44 +0000
0
0
No, I am not in agreeable terms with my friend because if it had been then how come the banks which are collapsing every day is happening if the balance sheets shown by them are true.
By Arijit Sarkar, Investment Advisor, Deutsche Bank  | 10 22 2008 17:32:10 +0000
Argue for "Favour"
Argue for "Against"
 Found the debate "Organizations and balance sheets "  interesting ?  Suggest to your connections and communities  
Leading Recruitment Firm
Leading Recruitment Firm
Viewers also viewed
Faced with changes in the utility industry, as well as in the overall business environment, Nova...
 
10 referals 1 comments, 576 views
Thoughts of student.
 
2066 referals 28 arguments, 614 views
You can easily see more number of working moms in coming days as most of the corporate...
 
137 referals 9 comments, 773 views
more...  
 
Sponsored Jobs
More From Author
But in today scenario law relate the personal laws to the religious customs and traditions and are out and out against any tamper of these laws. The other point that they raise is that when 99 per cent of laws do not cent percent percent protect the...
Bailouts, layoffs and cost cutting have become the order of the day in the present scenario of a global financial crisis and an economic slowdown. India too is not immune to it and would be coming out with a bailout package. Govt is finalizing an...
Data mining is not essential to a client-oriented entity that has a monopoly or where all client interactions take place in one concentrated place.
more...  
  • Popular Knowledge
  •  
  •  
  • Popular Jobs
  •