Loopholes in accounting has led to many fraudulent practices.Window dressing of balance sheets, cooking up data’s, hiking sales,jacking up share prices are few insolent intrigues that instigate deceiving measures and disintegrating materials.
Window dressing accounts for 50% of fraud in corporates.Share prices are enhanced, its valuations are hiked ,such that promoters and top management benefit most.Downturns or recession promote an acceleration in frauds .Promoters engage in misconduct,commit frauds and they easily justify their action.When there is high profitability, smooth flourish , the mishaps are buried deep. When the essence of paucity is experienced, the irregularities are thrown open.
Loan portfolios are unequally disbursed. The top brass account a very low non performing assets thus entering into a world of notoriety.False entries are made.Fictitious inventory is maintained in production and sales. The companies pay statutory dues forgoods not manufactured.Corporates , thus lure the investors, private equities , and mutual funds , by projecting feigned systematic profit .
Forensic experts have a lucrative tenure, as most mutual funds and private equities hire them to decipher the digressions. These agencies are making tonnes of money.
Apart from the top management,there is a widespread anomaly among the employees. The procurement related fraud are surging leading to a definite leakage of funds.
Indian companies , awry of expenses, subdue the misconduct , by compelling the erring official to resign. This man gets a plum job in another company , commits the same mistake, but let free for fear of abnormal costs. This individual ,will seek job elsewhere. he will land up in a bigger company, with extended access to perform a deeper crime.
Checking their duplicate profile , then and there, will conduct a disciplined behaviour, thus instilling an undeterred confidence in the investor’s mind.
Ethic is the vital provision in business. Confidence is the enriched quality of business. Straight movement is an emphatic idiom of business.
The cooked goose idiomatically depicts hidden untold slanders and much ruptured ulcers
Meenas Poems 