A forensic audit of Ricoh India’s financial dealings “found anomalies” in transactions between the printing and imaging equipment maker and its vendors and customers.
The preliminary audit report by PwC identified “patterns and issues” in Ricoh India’s sales and purchase data involving 18 parties, including two listed companies – Vedavaag Systems Ltd. and Fourth Dimension Solutions Ltd.
As on April 1, 2014, software services provider Vedavaag owed Ricoh India Rs 56 crore, which it failed to pay despite repeated reminders over the next eight months, the report said. A cheque it issued was also dishonoured, giving Ricoh India enough indication that the account had turned bad, the auditor said.
This, however, didn’t dissuade Ricoh India from making additional sales worth Rs 46 crore to Vedavaag on December 18, 2014. That too remained unpaid. Nearly nine months later Ricoh India made certain purchases from Vedavaag and paid Rs 25 crore for them despite the pending debts, said the audit report, a copy of which was obtained by BloombergQuint.
Curiously, Vedavaag’s FY15 accounts don’t reflect the full Rs 102 crore that it has owed Rioch since 2014.
PwC was appointed by Shardul Amarchand Mangaldas, legal counsel of Ricoh India, to conduct the forensic audit of accounts between April 1 and September 30, 2015. At the time, the company’s position was that there was nothing wrong with its books before the said period. A whistleblower’s testimony and a few documents, however, contradicted this claim, as BloombergQuint reported earlier.
FDS had continuously traded in shares of Ricoh India from the week of August 22, 2014 till November 20, 2015.
PwC Preliminary Audit Report