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Securities Premium account

I was reading this article about how Hindalco is hiding its loss due to acquisition of Novelis, how Tata hid its development charges for Indica using an innovative Securities Premium account.

Basically the asset is transferred to this account and depreciated without effecting the Profit and loss accounts. What is worse is that since Indian courts allow this scheme, more and more companies are taking the route and hiding the true shape of their balance sheet from the public.

2 replies on “Securities Premium account”

india artificially lowers its defence spend by keeping the para-military expenses out of the defence budget. Somebody tell me why border patrol is not part of India’s defence…

the oil bonds are cleverly not kept part of the budget deficit etc etc… i agree the list is endless

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