For second quarter of the financial year 2008-09, the company reported revenues of Rs 27 billion and an operating margin of 24% as against the actual revenues of Rs 21.12 billion and actual operating profit margin (OPM) of 3%. This resulted in artificial cash and bank balances going up by Rs 58 billion in Q2 alone.
> Inflated (non-existent) cash and bank balance of Rs 50.40 billion (Rs 53.61 billion was reported in books).
> An accrued interest of Rs 3.76 billion which is non-existent.
> An understated liability of Rs 12.30 billion on account of funds arranged by the chairman, Raju.
> An over stated debtors` position of Rs 4.90 billion (as against Rs 26.51 billion reflected in books).
The gap in balance sheet had arisen purely on account of inflated profits over a period of last several years.
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