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Corporate Governance & Fraud Risk Management
book

Corporate Governance & Fraud Risk Management

by Balwinder Singh
January 2014
Intermediate to advanced content levelIntermediate to advanced
92 pages
3h 17m
English
Pearson Education India
Content preview from Corporate Governance & Fraud Risk Management
Financial Statement Frauds | 13
‘Purchase’ of Shares at High Premium
This is the most widely adopted method for in-
ating net worth and equity base of companies in
India. The promoters place funds at the disposal
of their relatives and/or friends, and ask them to
purchase shares at an unjustiably high premium
through private placement routes. The same mon-
ey is siphoned o from the company and reused for
equity rigging. The process of siphoning o funds
from the company for such purposes has been ex-
plained at length with examples in Chapter 3.
A company took a loan of INR 30 crore from
a bank. After disbursal, the amount was trans-
ferred to ...
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Publisher Resources

ISBN: 9789332540866