The Hindu Business Line : Investor cell hands over list of ‘errant’ companies

The Investors’ Grievances Forum President, Mr Kirit Somaiya, today met the Corporate Affairs Minister, Mr P C Gupta, and handed him a list of 15 companies that had allegedly manipulated financial results for the year 2008.

“These are all listed companies with turnover ranging between Rs 500 crore and Rs 1,000 crore,” he said.

In a statement on his web site, Mr Somaiya cited a recent research report and said his organisation observed that these companies were misleading the investors in areas such as valuation, and were window-dressing their accounts, inflating turnover and profits.

He said that these companies also engaged in “suspicious transactions with subsidiaries, group companies and closely-held companies”.

Without naming these firms, he said one such case pertained to a realtor whose sales had fallen 44 per cent in FY08.

It also cited an aviation company that changed the accounting method to inflate the profit by changing its depreciation policy.

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