Ricoh India Says Some Accounts Were Falsified

Ricoh India Ltd. said that some of its accounts were falsified and accounting standards violated, causing “grave loss” to the company and shareholders.

The company estimates an aggregate loss after tax of Rs 1,123 crore for the financial year 2015-16, according to the Ricoh’s filing to the Bombay Stock Exchange. The findings were from an internal investigation carried out by the company, after a PricewaterhouseCoopers audit showed that the company’s books and financial statements did not reflect the true state of affairs.

The company also gave estimates for the financial performance for the last financial year.

• Quarter ended June 2015: Rs 40 lakh profit.
  
• Quarter ended September 2015: Rs 147.4 crore loss.
• Cumulative loss for quarter ended December 2015 and quarter ended June 2016: Rs 976.5 crore.

The company had been suspended from trading by the Bombay Stock Exchange on May 26 as it was unable to submit the financial results since the quarter that ended in June 2015.

PwC’s April report had warned the company’s board of directors about irregularities in the accounts for two quarters. PwC was hired by the parent company, Ricoh Japan, to conduct a forensic audit on the company.