
Financial Statement Frauds | 17
Financial Statement Frauds to
Retain Controlling Stake
The second main objective of committing nan-
cial statement frauds by the management is to re-
tain controlling stake over the company. There are
cases in which promoters deviate from accounting
standards to not only over-project prots in order
to lure investors and lenders, but to also retain con-
trolling stake over the company after an IPO.
In one case pertaining to a television content
production company, it was seen that when this
private limited company decided to go public,
before the issue of IPO the company changed
their accounting policy. For 7–8 ...