In its report on DLF titled ‘crumbling edifice’, analysts Neeraj Monga and Nitin Mangal have slammed the company’s accounting practices, business model and . After Kingfisher, Veritas demolishes DLF – Shares of DLF plunged as excoriated DLF, dubbing India’s largest realtor ‘a crumbling edifice’. Meanwhile, in a report titled A Crumbling Edifice, analysts Neeraj Monga and Nitin Mangalof Veritas Investment Research Corp. said DLF was.
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Canadian equity research firm Veritas Investment Research has lately shaken up the usually complacent world of stock research in India by publishing several reports that question corporate governance at large Cgumbling companies. The Bombay and National stock exchanges on Nov. The latest is Indiabulls Group, a Mumbai-based company which began in broking but branched out to real estate and other businesses.
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A edifkce by Veritas Investment Research Corp alleges that Indiabulls Real Estate is bilking investors for the benefit of select insiders. We all know how that story has played out so far. Indian police said they arrested stock analyst Nitin Mangal on charges of extortion and forgery related to a report he wrote for Veritas Investment Research Corp.
Last Updated December 19, 1: And secondly, as Firstpost said earlierthe inability of promoters to segregate their personal interests from corporate interests leads to the shortchanging of minority shareholders. Indiabulls Real Estate Ltd. Stock analysts are sometimes loathe to write negative reports on companies in the clubby world of Indian business. While DLF said that it had accepted the recommendation of the special committee, which consisted of independent directors, its independent advisors and valuers for the merger, nowhere had it stated the valuation figure.
In a report titled, “A house of cards,” Veritas said RCom’s accounting policies are “whimsical” and don’t provide a clear picture of the underlying operating and business trends, and added that the firm’s governance practices were “sub-optimal. Aug 9, 4: Some experts are warning Canadians they’ll have to get used to a weaker dollar after a year that saw almost nothing but bad news for the loonie.
In his defence, Monga says ” “Anybody who has any experience of India knows the Indian real estate market is rife with underhand dealings Earlier it had taken a dig at India’s richest businessman and alleged that Mukesh Ambani’s Reliance Industries RIL had caused loss of 25, crore to its shareholders by demerging its communications business and subsequently transferring it through a series of transactions to younger brother Anil five years ago.
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We believe issuing equity in a secondary offering thereby diluting shareholders, and killing the current dividend are the only reasonable options for the Company.
Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in A file photo of the Indiabulls office in Gurgaon. According to the latest report by Veritas, the stock should be valued at Rs per share. Shares of all Indiabulls companies fell sharply soon after markets opened, although they recovered some ground by close of trade.
From rich Asian Games medal haul to cricket team’s success in Australia, a defining year for India. But Veritas, which is known for making bold calls, is no stranger to controversy in India.
Veritas has accused the real estate group of poor corporate governance and irregularities in its accounting and financial practices. Sanjey Roy, spokesman at the New Delhi-based company, declined to comment. Indiabulls responded on Thursday by filing a police complaint against Veritas. General election, trade war issues, crude oil prices: What transpired in the interim? According to Veritas, “Investors seeking reliable and credible information on Indiabulls Real Estate Ltd and Indiabulls Power Ltd cannot depend on the reported financials of the two companies.
Wed, Aug 08 Indiabulls says that the allegations have ignored disclosures in the public domain.
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Neeraj Monga,executive vice-president and head of veritax at Veritas, in an interview with CNBC-TV18 reiterated that their reports are based on publicly available data, such as the company’s regulatory filings.
In a second email, Indiabulls also refuted edificee of the specific ediifice raised by Veritas, citing filings to stock exchanges, financial statements and annual reports.
The question of how the Ambani family shareholding had gone from 38 percent to 63 percent in the change of Reliance Communications ownership defied logic, Monga told Outlook earlier this year. Edifive Your Comment s. Filed under News FP Street. Indiabulls Financial Services Ltdcame a few years later. Reliance to buy majority stake in renewable energy services firm Kanoda. The firm has not contacted Indiabulls before or after the research was published. Canadian equities research firm Veritas Investment Research, which hit the headlines last year for raising fingers at corporate governance of some of the top business groups in the country, is back doing what it does best — ediffice apart companies which it finds overvalued and not shying away or mincing words while crumboing so.
The report does not spare the promoters either. From rich Asian Games medal haul to cricket team’s success in Australia, a defining year for India Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in He even said that the company should be delisted from the BSE for flouting Indian accounting standards.
He declined to comment specifically on Indiabulls Group. According to the report, DLF has faltered at every step — by selling its hotel assets and exiting mega township projects in Karnataka and West Bengal, to name a few.
Indiabulls Group has a networth of crumb,ing Claims made by management about its ability to execute were fanciful. The Veritas duo believes that DLF will seek assistance from financial institutions to restructure its loans. He ceumbling mentioned that the company plans to approach the Securities and Exchange Board of India, the capital markets regulator, to investigate the matter. Meanwhile, Indiabulls has reacted crrumbling to the report.