Stripping or Stealing the Listed Company of Assets ! ~ How Promoters are suspected to do it and Auditors suspected to allow it !

You’ve heard of Naked Speculation ! but have you heard of Naked Companies that have been rendered so because they were stripped off their Assets by their Own Promoters  !!!?

Have always known how Indian Corporates ,even some of the well known names, indulge in siphoning off funds and stripping and stealing assets of the companies they have promoted or taken over !

In fact this reality is well captured in the tagline for my blog  ” In India,Companies may fall sick but Promoters rarely do !”  

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Reliance Industries at Rs 1055….”The Best Years Lie Ahead” says Mukesh Ambani…how does it stack up against Global Giants?

Switched on my mobile this morning after a few days of tackling a tough Viral…thank you guys for all your “get well” wishes…they worked

Listened to the live broadcast on stock channels of Mukesh Ambani at the 36th AGM of RIL this morning in Mumbai rolled out the roadmap ahead for his Group…this are a few interesting bytes that really caught my ear

  • Now with the rescinding of the Non Compete Agreement with brother,Anil Ambani’s (ADA) Group, Mukesh Ambani’s RIL Group will enter the Power Industry in a very big way…a blueprint is being prepared….what is amusing however is that despite discovering and drilling Gas from the KG Basin,RIL will not execute any gas based project till 2022…so it’s going to be coal based,hydel,nuclear and alternative energies projects….ironically it is supplying this Gas to Other Fertiliser and Power Plants as directed by the Government…even to ADA Group Power Plants when they are ready to accept and if the Government directs then
  • Organised Retail has earned Revenues of Rs 4500 crs in 2009/10….in just Five Years it will jump ten fold to Rs 45000 crs !…..keeping in mind that RIL is the first Indian Company to cross Rs 200000 crs turnover this year,this would be a great contributor 

Anything BIG to earn and HIGH growth rates forecast,then rely on RIL to enter that sector….Petrochemicals,Petroleum,Retail,Infrastructure….nowTelecom,Pharma,Healthcare,Power,Education.

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2.34 out !…4.20 in ! as Supreme Court rules in favour of RIL and Mukesh Ambani and not RNRL and Brother Anil Ambani…Feel Sad for Anil..so does RNRL now stand for ‘Rahe Na Rahe Ltd’!…I don’t think so

I’ve no bias… but feel sad for Anil Ambani…. I’m with him on this one….. Supreme Court gave a split verdict today in the RIL v/s RNRL Gas Pricing embroglio in favour of RIL

So now 2.34 is out and 4.20 is in !… One perspective is that RIL and the Government have done a 4.20 on this one!

In 2005 when the Reliance Group was split between the Ambani Brothers a MOU was signed between the brothers and blessed by their Mother too… It prescribed that RNRL would be supplied 28 million mmbtu gas  daily by RIL at a price of US $ 2.34/mmbtu….. Anil agreed to the split valuations which included this arrangement too…. He went ahead and got his company RNRL to enter into an agreement with his ambitious baby, Reliance Power, to in turn supply this Gas from RIL for the upcoming 7.4 GW Dadri Power Plant which is slated to be the biggest Gas based Power Plant in Asia

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Reliance Industries announces a Bonus of 1:1 !…Now ! Now ! Now !

Reliance surprised all yesterday with a post market bonus declaration of 1:1….It last gave a bonus in 1997…and before that in 1983 and 1980

Dhirubhai Ambani,the Founder was the dramatic architect for all these bonus issues…but he passed away in 2002……Investors were like Children in those days…and the father was Dhirubhai !….his bonus announcements were always dramatic…like breaking an AGM to have a board meeting to discuss Bonus and coming back to announce a 1:1 Bonus…all pre planned

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Supreme Court : RIL v/s RNRL is Ram Jethmalani v/s Harish Salve

There were 48 TV Crews at the Supreme Court this morning…..The Cameras were positioned to broadcast live sound bytes from the lawyers of RIL and RNRL

First we had a trifle agitated, Ram Jethmalani,who represented RNRL, emerging and a hectic rush to have  Mikes thrust onto him for his comments

This is what Jethmalani said,rather accused 

” The Supreme Court has not stayed the High Court Order which had favoured RNRL.The Government is a Puppet of RIL and The Oil Ministry is in the pocket of Mukesh Ambani….according to me they (RIL) cannot deal with the Gas…They (Mukesh Ambani and RIL) can go against Moral Issues and Mother’s Mandate….It is a stupid argument ( that the MOU cannot override Sovereign Interest).In a democracy and a republic there are no sovereign authorities..all authorities are bound by a court of law ” 

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Just heard some Insipid advise for RPL from ‘Experts’ on UTVi just now!

Two ‘Experts’, one Fundamental and the other Technical were on a Viewers Q & A show right now on UTVi…A viewers question came forth on RPL…”I have brought it at Rs 154,what should I do ?”

Both these ‘Experts’ went into detail on the merits of holding RPL for a One Year Hold !…Insipid Stuff…Guys ! RPL will not be in existence after a Year !….the RPL Price right now merely reflects a 16:1 merger ratio with Reliance Industries…RPL is Rs 125 and Reliance Industries is Rs 2000 !…That’s it !…so it’s a just a Piggy back share right now…It has to be !…what would have served the viewer well would be to explain to him that at his cost of Rs 154 in RPL ,his holding cost in Reliance Industries would be Rs 2464 …Will this Price be reached ,given the Court ruling against them in the RNRL Case ?…The downward effect of this on the EPS will be Rs 20 in FY 11…Despite this short term reaction in Reliance,it definitely will regain strength…It has a 17% weightage in the Sensex and if the Sensex has to move towards 18000 and beyond in the next year or two,it cannot be without Reliance climbing upwards towards Rs 3000 and beyond

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