HeroMotocorp — Corporate Governance
In the past 5 days, Hero Motocorp shares have witnessed a decline of ~6% even as NIFTY moved up ~3.5%
Wonder that if companies of this repute have actually indulged in these transactions, as claimed by IT Dept, serious questions emerge
- which listed company does a shareholder trust when it comes to the genuineness of the financial statements -
- and if promoters are actually running the show, do they ever care about the minority shareholders who suffer from the siphoning off of money
- what do the Independent Directors do? The list here includes a former Chairman of SBI, a former Chairman of SEBI, a retd. Air Chief Marshal — are Independent Directors truly independent ? Were they even aware of this? And if not, then whats their exact job?
Snippets from the CBDT’s official press release about the Search & Seizure operations on 23rd March :
a) the S&S was on the main company along with company operating chartered flights and a real estate group of Delhi-NCR covering more than 35 premises across Delhi-NCR
b) 800 cr+ of expenditure has been booked in the guise of purchase of services from a specific event management entity. This entity has siphoned-off the money by way of layering.
c) 10 acres of farm land at Delhi was purchased through few paper companies involving unaccounted cash component of 60 cr+ the intermediary who facilitated the said deal has admitted in his statement that major part of the sale consideration was paid in cash.
d) Cash was being received in lieu of sale of units in their various real estate projects across Delhi.
e) The company operating chartered flights, booked bogus expenses and did not recognise income of 550 cr+, rotated funds via suspicious loans through a dubious NBFC floated by a key person, layering and re-routing of funds through paper companies and claiming bogus interest expenses, etc.
f) Undisclosed cash of Rs. 1.35 crore+ has been seized and jewellery worth Rs. 3 crore + kept provisionally under restraint.
#heromotocorp #stocks #investing #corporategovernance
