How to make Scams (Here it is, with an example)

MIND BLOWING !!!!!! FOR ALL C.A'S OUT THERE

•          A very well known  late chief minister  sworn as chief minister in may ‘ 2004

•          Before that his family assets would not exceed50 lakhs as declared by him.

•          After  his father becoming C.M his son,a very popular figure came into picture to chanalise the corruption money of his father.

•          In the process he utilised Sandur Power Company Ltd for routing the money.

•          That Family Promoted 3 Companies and Invested

•          1. Sandur Power Company Ltd               (Rs. 17.00 Cr)

•          2.  Saraswati Power & Infrastructure Ltd (Rs. 3.02 Cr)

•          3.  Silicon Infrastructure Pvt Ltd               (Rs. 7.47 Cr)

                                                THAT   FAMILY PROMOTED

                                             M/s. Sandur Power Company Ltd

                                                                &

                                   M/s. Saraswati Power & Infrastructure Ltd

                              Promoted 6 subsidiary companies and Invested

•          Carmel Asia Holdings Pvt Ltd (Rs. 12.08 Cr)
•         Pulivendula Polymers Pvt Ltd (Rs. 1.00 Cr)
•         Silicon Builders Pvt Ltd (Rs. 23.70 Cr)
•      Classic Realty Pvt Ltd (Rs. 78.89 Cr)
•     Marvel Infrastructure Pvt Ltd (Rs. 20.24 Cr)
•   Bhagwath Sannidi Estates Pvt Ltd (Rs. 2.41 Cr)
• M/s. Carmel Asia Holdings P Ltd
• M/s. Classic Realty Pvt Ltd
• &
• M/s. Silicon Builders Pvt Ltd
•                 Promoted 4 subsidiary companies and invested
• 1.    Janani Infrastructure Pvt Ltd           (Rs. 9.95 Cr)
• 2.            Jagati Publications Pvt Ltd              (Rs. 73.56 Cr)
•                 (Saakshi Telugu News Daily)
• 3.            Indira Television Ltd (Saakshi TV)  (Rs.10.22 Cr)
• 4.            Shalom Infrastructure Pvt Ltd         (Rs. 8.98 Cr)

M/s. Sandur Power Company Ltd

M/s. Silicon Builders Pvt Ltd

&

M/s. Classic Realty Pvt Ltd

Promoted 4 subsidiary companies and invested

1. Bharti Cement Corporation Ltd      (Rs. 45.18 Cr)
2. Harish Infrastructure Pvt Ltd          (Rs. 4.97 Cr)
3. Inspire Hotels Pvt Ltd                     (Rs. 5.97 Cr)
4. Capstone Infrastructure Pvt Ltd      (Rs. 4.42 Cr)

M/s. Sandur Power Company Ltd

M/s. Silicon Builders Pvt Ltd

&

M/s. Classic Realty Pvt Ltd

Promoted 4 subsidiary companies and invested

1. Bharti Cement Corporation Ltd      (Rs. 45.18 Cr)
2. Harish Infrastructure Pvt Ltd          (Rs. 4.97 Cr)
3. Inspire Hotels Pvt Ltd                     (Rs. 5.97 Cr)
4. Capstone Infrastructure Pvt Ltd      (Rs. 4.42 Cr)
5. Subsequently in the year 2007-08 ,he disposed off  his shares in Sandur (1,04,62500 shares) to Sigma oxygen limited, Sai Surya Warehousing, Excel Prosoft Ltd, Nelcast Finance, Z M Infotech Ltd.,(all belonging to one family) and obtained more than675 crores. All the persons purchased the shares  him are benefited directly or indirectly from the Govt of that state.
6. From Sandur the investments are flown to Silicon Builders, Classic Realty, Carmel Asia, Janani Infra, Bhagawath Sannidi, Harish Infra, Silicon Infra, Shalom Infra (All are in Real Estate Business).
7. In turn from Silicon Builders and Carmel Asia the funds are flown to Jagati Publications & Indira Television Ltd which are in Print & Electronic Media. This is nothing but routing of FDI accepted by Sandur to Media Companies through real estate companies.
8. The above is evidence for siphoning of funds and showing official route to Money Launders.
9. The above is nothing but corruption chanalised using the corporates, which will badly affect the Indian corporate in nearer future.
10. In Sandur that (family / concerns) holding 37% Stake.
11. In total that . Family received 800 Crores in Sandur Scam.
12. The company violated FEMA Act, Companies Act and used the law to channel corruption money.
13. In Jagati Publications shares are allotted to that  (family / concerns) at face value10/- only.
14. The above valuation benefited. (family / concerns) with2,500 Crores (3,500 Crores x 69 %).
15. In jagati publications 69 % shares are allotted to that (family / concerns) at10/-.

.

16. PVP Business Ventures  -  13,88,888 shares and invested50 Crores has been allotted 800 acres around Nadargul (nearer to Hyderabad International Airport).
17. ERES   2,22,222 shares7.77 Cr – awarded Vizag Pharmacity.
18.  (Hetero Group) 1,94,441 shares  Rs. 13.00 Cr – awarded Jadcharla SEZ.
19. Trident Life Sciences (Aurobindo Group)1,94,444 shares Rs.       Cr – awarded Jadcharla SEZ.
20. Pioneer Infra (Pennar Group) 5,55,555 shares19 Crores – awarded Lease of Mines & Star Hotel   AT  A RICH PLACE IN HYD.
21. In Bharathi Cements shares are allotted 4,51,85,000 shares to THAT (Family / concerns) for10/- only.
22. The premium is ranged between94/- to1440/- to different persons.
23. In Bharathi Cements THAT  (Family / concerns) holds 69 % and benefited6,500 Crores.
24. India Cements Ltd purchased 12,50,000 shares at a premium of110/- per share paid15.00 Crores – awarded with Lime stone Mines.
25. M/s. G2 Corporate services Ltd  purchased 64,42,300 shares at a premium of94/- per share and invested67 Crores. purchased 4,59,459 shares at a premium of175/- per share and invested8.50 Crores.
26. M/s. Dalmia Cements Ltd purchased 16,66,600 shares Premium @ 110/-, 1,37,931 shares Premium @ 1440/-, 68,965 shares premium @ 1440/- and invested50 Crores – awarded with Lime stone Mines.
27. THAT (Family / concerns) controls Bharathi cement corporation with 4,51,85,000 ( 69%) shares with an investment of only45 Crores. While the others accounting for 31 % shares have invested250 Crores.
28. Similarly in Janani Infrastructure shares are allotted at a premium of102/- per share, Shalom Infrastructure at a Premium of30/-, Indira Television at a premium of600/- per share.

*******

•          Originally company belongs to Grandhi Eswara rao, G. Satish, G. Shasikala and others. Subsequently in 31-10-1999  C.M’S SON joined as Managing Director.

•          D. Chandra Sekhar Reddy joined as Director on 31-10-1999

•          N. Sunil Kumar Reddy joined as director on 01-07-2001

•          Mr. Grandhi Eswara Rao resigned on 01-07-2000

•          Mr. Grandhi Satish Kumar resigned as director on 09-12-1999

•          Grandhi Sashikala resigned as director on 09-12-1999

•          MCB Reddy resigned as director on 09-12-1999

•          V. Vijaya Sai Reddy joined as director on 01-07-2000 and Resigned on 12-08-2002

•          The Company auditors are S.P. Associates, Chennai. They were also the same auditors up to 2008 for Jagati Publications.

•          As seen from the documents share application money as on 31-03-2006 was2.6 Crores and it was continued till 31-03-2007 also. The same is Violation of the Companies Act, 1956.

•          In the annual reports of the company the directors who are retired, appointed or reappointed is not mentioned.

•          The entire family is holding the shares in Saraswati Power. The share holding pattern is as below. As seen from Balance sheet Share Premium collected is1,33,23,750/-.

•          As seen from the Balance Sheet there is USL of3.3 Crores as on 31-03-2007 and 3.70 Crores as 31-03-2006 from Sandur Power Company Ltd. the same should be matched with the accounts of Sandur Power Co Ltd. Please verify for act violation for accepting deposit from companies other than the promoters. Whether this is acceptance of deposits or what else?.

•          As seen from the Balance sheet the company invested1 Crore in Pulivendula Poly Pvt Ltd much before than 31-03-06. Whether the shares allotted or not? if shares are allotted is Pulivendula Polymers Pvt Ltd was declared as subsidiary or not? Form -2 for shares filed or not?. Not filed.

•          As seen from the Balance Sheet the company has purchased shares in Sandur power co ltd before 31-03-2005 with1,74,40,000 (17,44,000 shares).

•          As seen from the Balance Sheet USL is of3.30 Crores from Sandur Power and invested the same amount in Sandur power & Pulivendula Polymers with an amount of2.74 Crores. Whether any Act violation for investment of share in a company can be made by availing USL from the same company. What is the interst rate applied for USL and if no interest is charges why?.

•          As seen from Balance Sheet schedule 15 the company paid14.92 Lakhs as interest on deposit for the year 31-03-2006 and32.90 Lakhs for 31-03-2007 at the same time the company has not received any dividend from Sandur power on the shares invested.

•          One side the company is paying interest to Sandur power this is artificial booking of expenditure in Saraswati power to reduce the profits and income tax. This is a clear case for economic offenses U/s. 234 since both the companies are under the management of same promoter and case can be referred to income tax also.

•          Here the Govt of India lost Income tax to the tune of10.85 Lakhs for the year 2006-07.

•          As per the information available to us the share application money invested by KSN Soft (belonging to K. Srinivasa Naidu who is a share holder in Indira Television Ltd with 48.5 % stake. @ 10/- and he is the share holder in Carmel Asia holding 1,96,372 shares.

•           ERP Applications P Ltd also invested in share application money

•          Nelsoft / Nelcast / V. Vijaya Sai reddy (Auditor) Ex director in Jagati also invested in share application money

•          Nelsoft directors were spouse of Vijaya Sai reddy and his mother.

•          Here we declare that the KSN Soft earned profit of 90% which is normally not seen.

•          The Share Application Money of2.60 Crores was paid before 31-03-2006 by ………………………..and no allotment was made till 31-03-07 which violation as per Act. If not refunded Sec 58 A will attract.

•          As the information available to us by selling the shares with premium to Kealawn, Sigma Oxygen, & Nelcast by taking share application money the company paid or repaid the total loans with IREDA.

•          Here we can conclude THAT  family routed their corruption money through the above firms in to saraswati power. The above companies are having substantial official balances / white in their books of accounts by declaring abnormal profits.

•          As seen from the Balance sheet as on 31-03-2008  the company availed a Secured Loan taken from Centurion Bank of Punjab about4.59 Crores (2.57 Crore Term Loan, OCC 2.02 Crores).

•          The company availed an USL of1.34 Crores from India Cements ltd during the year 07-08. What is the necessity for ICL to extend unsecured loan to a private limited company

•          The Centurion Bank of Punjab sanctioned a term loan of651 Lakhs, Cash Credit of140 Lakhs, ILC of25 Lakhs aggregating to816 Lakhs on 20-06-2006.

•          The loan was amended on 26-10-2007 and CC limit was enhanced to200 Lakhs

•          How a One Lakh Authorised Capital company availed a Loan of816 Lakhs. The balance as on 31-03-2008 is of4.59 Crores.

•          The Question is how one Lakh Authorised Capital Company availed Loan of4.59 Crores. As per the companies act the loans of the company can not exceed 10 / 20 times of the share capital / net worth of the company. Any bank/financial institution extending funding will first ask the company to convert the share application money as issued, subscribed and paid up capital. How the bank ignored the above and interestingly the bank renewed the OCC limits and enhanced the limits during the year 07-08. All these will be happened only with influence only. Here it seems to be the banks are also colluded with the promoter.

•          As seen from the balance sheet as on 31-03-2007 the Advance for Share capital is of3.10 Crores and the same figures as on 31.3.08 also. The same was as on 31-03-2006 is of1.59 crores. The question is What is Advance for Share Capital??. Whether this is the share application money?

•          Out of the above amount1.00 crores was paid by M/s Saraswati Power & Industries Ltd., (which is belonging to THAT family) and for balance2.10 cores the details are not available. Who are the investors for2.10 crores.

•          Regd. Office of the company is residential address of THAT . Family.

•          The promoters of the company are Share Holders in Sandur Power also.

•          The Share Application Money Received from Investors / Companies have to be converted as share capital with in a period of 90 days otherwise the same shall be treated as deposit accepted by the company, which will be violation of act. If share application money was not converted as share capital with in 90 day the same should be refunded to the investors. Neither conversion as share capital nor refund was happened in this company. So the same was punishable under companies act.

•          C.M’S SON  has been resigned as Director from Pulivendula Polymers on 09-12-2006.

•          The Authorised share capital is 3 Crores (at present)  and the share application Money3.10 Crore Issued Share capital is100000/-.The Share Application Money is crossing total authorized capital and it is a violation.

•          As seen from the Balance sheet 4,51,85,000 shares are allotted to Sandur Power & Silicon Builders P Ltd which constitutes 83.5% of the total shares allotted up to 31-03-08 (Amounted 5,40,85,255).

•          As seen from the Balance sheet the Issued, Subscribed & Paid –up share capital is only5.00 Lakhs by the end of 31-03-06 out of which 4.42 Lakhs is Pre-Operative Expenditure.

•          The Regd. Office of the company is the residential Address of THAT  family.

•          THAT  family entered in to the company In the year 2006-07 and acquired shares to the tune of 4,51,85,000 @ 10/- each. Amounting to 45.18 Crores.

•          As seen from above Share allotment total shares are allotted to various companies & industries at a premium ranged between94/- to 1440/- per share.

•          M/s. India Cements Ltd paid an amount of 15 Crores to acquire 12,50,000 shares.

•          M/s. Dalmia Cements Ltd paid50 Crores to acquire 18,73,496 shares.

•          From the above we can clearly confirm the shares are being allotted to other at abnormal price and the same is suspicious.

•          In any company the shares are being purchased by others at a premium when the promoters are having substantial experience & expertise but in this case the promoters are not having any experience & expertise in this field. But other minority share holders acquired shares with abnormal premium are well experienced and market leaders in cement industries (Dalmia & India Cements)

•          If the share of the THAT  family are disposed at the price given to Dalmia Cements Ltd THAT family will get 6,650 Crores.

Source: INTERNET