GROUP – 7 (Shilpa Goyal, Ravi Kumar, Vishu Gupta, Rahul Sharma)
•The company worldcom engaged in acquisitions various companies .Due to these acquisitions, company grow quickly and these made the company stock price increase dramatically.
•Because of different accounting systems of acquired companies, world com financial record were a mess
•The company accountant engaged in number of fraudulent activities to make net income look better.
•They were treating $7 billion of line cost as capital expenses rather than expenses and this helped them to show more revenue in financial statements, its mean they were showing more revenues and more profits as compare to actual in financial statements.

Group 3 ( Pallavi Mahajan, Nikita Puri, Manpreet Kaur, Simran, Nishant Singh )

First of all,
# The Company WorldCom was engaged in acquiring various companies due to which the company was at high pace & large stock.
Secondly,
# Companies which are acquired by WorldCom were following different accounting systems as compared to WorldCom. So,financially difficult situation.

# Company was also engaged in Frauds like :
         1. Making the NET INCOME look better means they were showing their goodwill, less        expenitures, more revenues, tax escape, increased profits etc.
         2. They were treating $7 billion of their Line Costs as Capital Expenditures means rent that should paid to the other companies for phone lines were treated as capital expenditures.

BSE's Certifications.....

Many of you have also asked me about Bombay Stock Exchange Certifications

These are

BSE's Certificate on Derivatives Exchange
BSE Certification on Securities Markets
BSE's Certification on Central Depository
BSE Certification on Corporate Governance
Link is

http://www.bseindia.com/training/bcde_test.asp

And check under Training/Certification for different modules.....

Cheers....
Gurdeepak....

BSE's Certifications.....

Many of you have also asked me about Bombay Stock Exchange Certifications

These are

BSE's Certificate on Derivatives Exchange
BSE Certification on Securities Markets
BSE's Certification on Central Depository
BSE Certification on Corporate Governance
Link is

http://www.bseindia.com/training/bcde_test.asp

And check under Training/Certification for different modules.....

Cheers....
Gurdeepak....

NSE's Certifications in Financial Markets....

Hello my Friends....

Many of you with Finance major are asking me about the modules and certifications about NCFM. Here is the link which provide all the details about various certifications, modules, test dates, centres and registration procedure....

http://www.nseindia.com/content/ncfm/ncfm_about.htm

I am really glad that most of you are thinking on these lines and would like to start now....
Yes this is the right time to start....

For any assistance, please don't hesitate to ask.....

Cheers....
Gurdeepak....

Anatomy of a fraud (Small Case Study)

Group-12 (Neha, Sonia, Saumya, Parminder, Ravinder Singh)

Worldcom accounting Fraud:

- The company created fraud accounting statements by treating normal operating expenses i.e 'line costs' as capital expenditure rather than expenses.

- By doing this, the company could gradually subtract the expenses from revenues over time instead of subtracting their full amount as they were incurred. This helped them to show more revenues than actual financial position of the company.

comments on case study

Group No.-5 [Pawan Kumar, Prabhjot, Neeru Thakur, Harjeet Kaur]
There are mainly two raesons for this fraud. They are:-

1. For tax evasion. For this he overstated company's expenses so as to pay lesser amount of tax.


2. To pay lesser amount of dividend to the shareholders.

comments on case study