Misappropriation of internal accounts
Leena Nayak
(Querist) 21 June 2012
This query is : Resolved
Dear All,
My friend is a finance head in a company. she has cushioned up profits due to the pressure of his bosses without consulting the bosses. However now he is not able to handle the thing. So he wants to disclose it to his boss as he is feeling guilty for the misappropriation he has made. Can any one help how he should disclose to his bosses & whether company could take any legal actions on him. The unaudited results were presented to share holder. However he as always being explaining his bosses that the project profitability were lower than budget.
So kindly help him how to handle the situation.
Thanks
SAINATH DEVALLA
(Expert) 21 June 2012
Its not a lawyer but a chartered accountant who has to handle this case right now.The lawyer enters the frame only after the criminal misappropriation has been blown out.
Shonee Kapoor
(Expert) 21 June 2012
Consult a CA.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Leena Nayak
(Querist) 22 June 2012
The question here relates is how to disclose means, if he writes an email or a letter that he has cushioned amount in the income statement. Whether the company can use that email/ letter against him. whether such misappropriation in accounts can be taken to the law of court or the company would just remove him from the company.
K.K.Ganguly
(Expert) 23 June 2012
From plain reading it appears that he, being the Finance Head, shown an incorrect figure as profit of the Company by jacking up the actual figure & this figure has been reflected in the Balance Sheet, extracts of which has been presented to the share holder. Consequentially the share prices of the Company also has been fraudulently jacked up. It amounts to fraud committed by the Company. He is in serious problem. His bosses will certainly try to escape passing the blame on him.
Contact a lawyer who is expert in Company matters.
