KS Oils skids 11% on fears of fudged numbers
Shares of edible oil maker KS Oils tumbled 11% as investors sold off holdings in the edible oil maker since stake sale in the company looks unlikely in the near term.
By ET Bureau | Updated:
MUMBAI: Shares of edible oil maker KS Oils tumbled 11% as investors sold off holdings in the edible oil maker since stake sale in the company looks unlikely in the near term due to the possibility of accounting mis-statements.
The stock fell to Rs 11.06, eroding Rs 363 crore of value in the past two months, as a part of the promoters’ stake was sold off following failure to meet margin commitments.
In the process, private equity investors such as Barings Private Equity Asia and Rajat Gupta-backed NSR have a paper loss of at least Rs 250 crore, ET calculations show.
Auditors have found a hole in the company’s accounting running into hundreds of crores of rupees as bets on mustard seeds backfired for the company, said people familiar with the trades. It is suspected that around Rs 400 crore have not been accounted in the books which might be an operational loss.
When contacted, chairman Garg admitted to certain problems without describing them in detail, owing to which the company is yet to publish its annual annual report for the year ended March 2011.
It has published its unaudited accounts for the first quarter where its net profits decreased by 12.6% to Rs 33 crore while its sales increased to Rs 1,266 crore.
The stock fell to Rs 11.06, eroding Rs 363 crore of value in the past two months, as a part of the promoters’ stake was sold off following failure to meet margin commitments.
In the process, private equity investors such as Barings Private Equity Asia and Rajat Gupta-backed NSR have a paper loss of at least Rs 250 crore, ET calculations show.
Auditors have found a hole in the company’s accounting running into hundreds of crores of rupees as bets on mustard seeds backfired for the company, said people familiar with the trades. It is suspected that around Rs 400 crore have not been accounted in the books which might be an operational loss.
When contacted, chairman Garg admitted to certain problems without describing them in detail, owing to which the company is yet to publish its annual annual report for the year ended March 2011.
It has published its unaudited accounts for the first quarter where its net profits decreased by 12.6% to Rs 33 crore while its sales increased to Rs 1,266 crore.
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