Polycab priced its IPO at Rs. 533 - Rs 538. A simple glance at the exchanges bid data will show how to create media frenzy and hype around the IPO. Simply put in bids at prices which were bound to be rejected such as 533, 534, 535, etc.
Another remarkable thing is the amount bid for is almost the same i.e. 3.40 crores across the various prices. Such media hype will prompt the retail investors into action and possibly losses.
Never mind that the DRHP contains this in the auditor's report:
"For the year ended March 31, 2017
Qualified Opinion
The Company’s internal financial control over cut-off procedures for recognition of revenue at the
year-end and review of invoices raised for certain category of customers were not operating
effectively which could have potentially resulted in under or over accrual of revenue and receivables
in the financial statements.
For the year ended March 31, 2016
Disclaimer of Opinion
During the year, the Company implemented a new ERP system. According to the information and
explanation provided to us, since the ERP system was under stabilization, the Company relied on its
legacy and manual controls."
As long as there is a quick buck to be made (or lost?) why bother with such trivial things as Auditors Reports?
Another remarkable thing is the amount bid for is almost the same i.e. 3.40 crores across the various prices. Such media hype will prompt the retail investors into action and possibly losses.
Never mind that the DRHP contains this in the auditor's report:
"For the year ended March 31, 2017
Qualified Opinion
The Company’s internal financial control over cut-off procedures for recognition of revenue at the
year-end and review of invoices raised for certain category of customers were not operating
effectively which could have potentially resulted in under or over accrual of revenue and receivables
in the financial statements.
For the year ended March 31, 2016
Disclaimer of Opinion
During the year, the Company implemented a new ERP system. According to the information and
explanation provided to us, since the ERP system was under stabilization, the Company relied on its
legacy and manual controls."
As long as there is a quick buck to be made (or lost?) why bother with such trivial things as Auditors Reports?
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