Tag: Accounting

In India, as in China, two sets of accounts are kept.One for self and another for Tax authorities. How does one inflate profits and increase stock value the market?
-Inflate receivables
-Deflate the payables
-Prepare forged bank documents to show funds in reserve and cash on hand
-Form a subsidiary company in your relative’s name, acquire real estate, get government contracts,increase the co’s worth on paper( no project being started),make the company acquire the subsidiary at a higher price and manipulate what you have siphoned of in the parent company by adjusting the books of the acquired company .In addition to that ,create bogus employees on rolls, disburse salaries and have them credited in your relatives name, by resorting to bogus bank accounts.
Do not remit employee’s contribution of Provident fund to Government and siphon it off as well.
This is not a hypothetical case.IT major Sathyam has done it and Price Water House has audited the account.