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Ricoh India Limited: Financial Shenanigans
內容大綱
Ricoh India Limited, a subsidiary of Ricoh Japan, failed to submit its quarterly results in September and December 2015, leading the Bombay Stock Exchange to move the company’s shares from the B category (companies with small to mid-capitalization rates) to the Z category, which included companies that had failed to comply with listing requirements or had failed to resolve investor complaints. Although the company claimed that it had adhered to corporate governance standards and high ethical conduct, it admitted to having falsified its accounting records. Between March 2016 and May 2016, the company’s shares lost 42.3 per cent in market value. What was the impact for the company’s shareholders? After the falsification of the company’s financial statements was made public, should an investor continue to hold the Ricoh India shares, or divest?
學習目標
This case can be taught in post-graduate accounting and commerce courses. It is also suitable for courses in advanced financial statement analysis, or in management development and corporate training programs in discussions on financial statement analysis. This case can also be used for ethics courses. After completion of the case, students will be able to<br><ul><li>analyze financial statements in an effort to understand the financial pressures that might lead a company to falsify its accounts;</li><li>identify, based on the notes to accounts in the financial statements, the possible methods that a company might employ when committing fraud;</li><li>apply the Fraud Triangle Theory to understand the possible reasons that might lead a company to commit financial fraud; and</li><li>differentiate between aggressive and fraudulent accounting.</li></ul>