Fraudulent and Creative Accounting

Fraudulent and Creative Accounting Practices Used by the Indian Companies
Fraudulent financial reporting, no doubt, can have significant consequences for the organization and its
stakeholders, as well as for public confidence in the capital markets. Periodic high-profile cases of
fraudulent and creative financial reporting in India have raised concerns about “the credibility of the
financial reporting process and called into question the roles of management, auditors, regulators, and
analysts, among others.” India has been amongst the fastest growing economies in the world in the last
decade. In spite of global economic slowdown, the Indian economy grew by 8 per cent in 2010–11 and is
estimated to grow by 7 per cent in 2011–12. There is significant foreign investor interest as shown by a
50 per cent increase in FDI this year. Fortunately, it has remained relatively unaffected by the global
economic crisis, thanks to strong fundamentals of the economic policy. However, despite this situation
“the confidence of international investors and domestic entrepreneurs has been low in the last two years,
thanks to the various scams and frauds that have come to light during this period.”

The frauds in the ‘Indian financial markets’ have been known for many years. According to CapitalVia
Global Research Ltd. (www.capitalvia.com), “The following are examples of some of the popular Indian
Financial Market Scams (losses suffered): 1992 Harshad Mehta Securities Scam (Rs. 5,000 crores), 1995
Bhansali Scam (Rs. 1,200 crores), 2001 Ketan Parekh Scam (Rs. 1250 crores), 2001 The UTI Scam (Rs.
4,800 crores), 2008 Satyam Scam (Rs. 10,000 crores), 2008 The 2-G Spectrum Swindle (Rs. 60,000
crores), 2009 Madhu Koda Scam (Rs. 4,000 crores), etc. etc. Fruad committed by the Satyam Computer
Services Ltd. has been labeled by the media as “India’s Enron.” Some other popular scams were: Indian

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Praktik akuntansi penipuan dan kreatif yang digunakan oleh perusahaan IndiaPelaporan keuangan yang curang, tidak diragukan lagi, dapat memiliki konsekuensi signifikan bagi organisasi danpemangku kepentingan, serta untuk kepercayaan masyarakat terhadap pasar modal. Periodik kasus profil tinggipenipuan dan kreatif pelaporan keuangan di India telah mengangkat keprihatinan tentang "kredibilitaspelaporan proses dan disebut ke mempertanyakan peran manajemen, auditor, regulator, keuangan dananalis, antara lain." India telah antara ekonomi tercepat di dunia dalam terakhirdekade. Meskipun perlambatan ekonomi global, India ekonomi tumbuh hingga 8% di 2010 – 11 dan adalahdiperkirakan tumbuh sebesar 7 persen di 2011 – 12. Ada minat investor asing yang signifikan seperti yang ditunjukkan olehpeningkatan 50 persen FDI tahun ini. Untungnya, hal ini tetap relatif tidak terpengaruh oleh globalkrisis ekonomi, berkat fundamental yang kuat dari kebijakan ekonomi. Namun, meskipun situasi ini"kepercayaan dari investor internasional dan domestik pengusaha telah rendah dalam dua tahun terakhir,berkat berbagai penipuan dan penipuan yang telah datang kepada terang selama periode ini."Penipuan dalam 'pasar keuangan India' telah diketahui selama bertahun-tahun. Menurut CapitalViaGlobal penelitian Ltd (www.capitalvia.com), "berikut ini adalah contoh dari beberapa India populerPasar keuangan penipuan (kerugian yang diderita): 1992 Harshad Mehta efek Scam (Rs. 5.000 crores), 1995Tampil Scam (Rs. 1.200 crores), 2001 Ketan Parekh Scam (Rs. 1250 crores), 2001 UTI The Scam (Rs.sebanyak 4.800 crores), 2008 Satyam Scam (Rs. 10.000 crores), 2008 2 G spektrum Swindle (Rs. 60.000crores), 2009 Madhu Koda Scam (Rs. 4.000 crores), dll dll. Fruad yang dilakukan oleh Satyam komputerLayanan Ltd telah dicap oleh media sebagai "India Enron." Beberapa penipuan populer lainnya adalah: India