Frauds in India Inc blown out of proportion: survey

Frauds in India Inc blown out of proportion: survey
PRESS TRUST OF INDIA

New Delhi, Mar 4: Frauds in India Inc, specially consumer industry, has assumed alarming proportion. Last year, 90 top companies suffered a loss of not less than Rs 9.4 crore due to poor internal controls and collusion between suppliers and employees, global consultants KPMG said in its ’India Fraud Survey Report 2001’.

About 90 per cent of the consumer products sector experienced frauds, followed by hospitality industry (67 per cent) and retail segments (50 per cent), it said without naming any company.

The survey, carried out on 800 companies of whom only 15 per cent responded, said “more than half of the respondents experienced frauds in their organisations. The losses reported this year aggregated to Rs 94 million.”

About 36% of repondents who experienced frauds, were unaware of the amount of loss suffered, the report added. Consumer products and manufacturing industry was plaguedby activities like secret commissions, expense account frauds, diversion of stock and false invoices, while Financial sector suffered loss on account of misappropriation of funds, false statements, ATM and credit card frauds.