Corporate Governance & Fraud Risk Management In India

Cover
Contents
Foreword
About the Author
Chapter 1 : Corporate Frauds and the Macroeconomic Environment in India
	Shell Companies and Accommodation Entry Operators
	Abuse of the Participatory Note
	Nature of Real Estate Transactions
	Hawala
	The Impact of Corporate Frauds
Chapter 2 : Financial Statement Frauds
	Financial Statement Frauds to Induce Banks and Financial Institutions
	‘Purchase’ of Shares at High Premium
	Transferring Shares to Subsidiaries at an Inflated Value
	Over-valuation of Long Term Investments
	Inflating Turnover
	Financial Statement Frauds to Retain Controlling Stake
	Financial Statement Frauds to Obtain Monetary Incentives
	Financial Statement Frauds to Obtain Undue Benefits
Chapter 3 : Siphoning off Company’s Funds
	Generating Funds for Siphoning
	Shell and Front Companies
	Providing Advances
	Creation of Trusts and Foundations
	Statutory Auditors
Chapter 4 : Capital Market Frauds
Chapter 5 : Abuses in Related Party Transactions
	Relationships in Related Party Transactions
	Unrecovered Loans
	Arm’s Length Principle
	Avoiding Disclosure
Chapter 6 : Frauds by Companies Running Pyramidal Schemes
	The Pyramidal Scheme
	Impact of Pyramidal Schemes
	Range and Magnitude of the Problem
	Regulatory Gaps
Chapter 7 : Frauds by Companies Running Collective Investment Schemes
Chapter 8 : Unauthorized and Fraudulent Mobilization of Public Deposits by Companies
	Modus Operandi of Fraudulent Mobilization of Public Deposits
	Fraudulent Mobilization in the Guise of Receiving ‘Advances’
	Fraudulent Mobilization of Deposits in the Guise of Providing Goods or Services
	Fraudulent Mobilization of Deposits in the Guise of Preference Shares
	Pyramidal Marketing
	Use of the Internet
Chapter 9 : Frauds by Promoters and/or Management of Non-banking Finance Companies
Chapter 10 : Companies as a Tool for Money Laundering
	Main Tools of Money Laundering
	Shell Companies and Mainstream Companies
	Lifting the Corporate Veil
Chapter 11 : Companies Act 1956 and Fraud Risk Management
Chapter 12 : Regulatory Mechanism and Corporate Frauds
Companies Act 1956—Synopsis
Companies Act 2013—Synopsis
Provisions of Companies Act 1956 Relevant to Fraud Risk Management
New Provisions in the Companies Act 2013 Relevant to Fraud Risk Management
Securities and Exchange Board of India Act—Synopsis