Monday, February 23, 2009


A Lot of criticism has been linked on the said scam fudging of the books and rate of auditors. It appears no doubt there is collusion with the auditors and the management and they blindly signed the accounts without verifying the balance in the banks. The matter is under investigation and true facts will emerge after re-verifying the figures appearing in the accounts in near future.
It appears that the major portion of the equity is held by the FII's and promoters stake was only 8.61% in that 8.27% was pledged to the institutions. Thus negligible portion i.e 0.37% only was the stake of the present promoters. No doubt there is checks and balances in corporate governance but in this case they have foiled the blame game going on.
But the investors who have a major investments in equity incurred heavy losses instead of blaming others must get the balance sheets and other accounts  checked by there senior staff to avoid huge losses.

The amount to be spent in safeguarding there interest is negligible and the management and auditors will also be under check and they will be investigating the customers more prudently and there investments will be at the considerably lower risk though risk altogether is un avoidable.