Manomay Technologies Ltd., was a listed Company providing IT and ITES services. The Company was more than a decade old and had made a mark for itself in the Indian software industry. The promoters of the Company wanted t

Manomay Technologies Ltd., was a listed Company providing IT and ITES services. The Company was more than a decade old and had made a mark for itself in the Indian software industry. The promoters of the Company wanted to diversify their business operations. To fund these plans, the Board decided to issue Global Depository Receipts to be traded on Luxembourg Stock Exchange. The Company raised huge funds through the GDR's and the investors were also happy as the Company always paid handsome dividends and the share price indicated a growth trajectory. However, not all was well within the Board Room. The promoters were worried that the sudden slump in the real estate market would hit them hard as they had diversified and heavily invested funds into real estate business. They were anxious, as they will not be able to continue the same show in terms of numbers going forward. The promoters evaluated various options including merging their profit making subsidiaries, selling their stakes etc. However, nothing materialised and they were only able to manage the situation for couple of quarters. Meanwhile this news spread like wild fire in social circles, and the promoters were sensing there were possible takeover threats given their slumping financial position. The Statutory Auditors of the Company resigned citing other professional commitments much before their tenure was over. On this news, the share price of the Company took a beating and the Banks got anonymous letters stating there was huge fudging of books in the Company. The Banks ordered a forensic audit and a huge fraud was unearthed. The Government appointed Kural Consultants for investigation and submitting the final report. Basis the report, the Government initiated penal action against those who were involved in the fraud. It's been more than two years now and Manomay Technologies Ltd was taken over by some other Company. You were part of the Consultant team during the investigation and have been invited on WOW TV's prime show to be interviewed. Outline in brief your response to the following questions asked by the host of the show. Should the Companies have a diagnostic check by way of regular financial fraud investigation checks to gain credibility?