
16 | Chapter 2
had calculated the investment at market value,
which was not as per the accounting standards.
The investigation further revealed that actually
the revaluation was done at much higher value
than even the market value.
Inating Turnover
The main method followed for fraudulently inat-
ing the turnover is to create a large number of front
companies, and show bogus purchases and sales in
relation to these companies without any real busi-
ness transactions. The front companies are created
either by promoters themselves or by some of
their associates who charge certain commission for
showing these bogus entries. There are also profes-