Protectionist Policies: RJio apparent 'false flag' banking destroying an economy: Report.
Never in the history of industry has a single corporation been allowed to destroy an entire nations's industrial AND banking sector equity value the way RJio has destroyed its competitors with 'give away' free services followed by below cost services.
In a damning report the entire scheme has finally been publicized, only partially, and it ain't pretty. "Unusual Accounting" are the very polite and restrained words but you can expect that there is far far more to the story. 'Unusual Banking' is undeniably tied to it. 'Unusual Financing' is most likely also tied to it.
None of the domestic banks are winning business and are themselves facing extermination. And the most obvious question is not even discussed for fear of some sort of retaliation: If the domestic bankers aren't benefitting, Where is the money coming from? China? Illegal Drug industries?
This is why the Western Regulators charged with protecting domestic economies and the security that results, are so aggressive today.
In India which is so rife with daylight crime, it is extremely difficult to understand how and why RJio owners, the Ambani family have a place to keep their hats.
This is a crime screaming for justice. But in India, rife also with corruption, their own Regulators and court Justices are mute, as though they don't need a place for their own hats.
If India's own Captains cannot shine sunlight on the scheme in this giant market, perhaps out of lust for economic gain, then how can other countries trading and sharing a global economy with it trust them to defend against a contagion? Are we Allies in reality or just on paper?
telecom.economictimes.indiatimes.com
Accounting quirks? Jio earnings face close scrutiny on D-Street The vast majority of stock analysts who follow the conglomerate consider it a good investment. Bloomberg | April 23, 2018, 15:54 IST... From his perch overseeing Reliance Industries Ltd., one of India’s largest conglomerates, Ambani has plowed more than $38 billion into his wireless entry, Reliance Jio Infocomm Ltd. It’s a classic business disruption... But one claim merits a closer look: that Jio has been profitable virtually from its commercial launch. And it’s a worthwhile exercise, given talk of a possible initial public offering for the unit or even an acquisition.
Unusual Accounting
A review of Jio’s unaudited results for the last year shows that the wireless venture and its parent relied on a series of accounting decisions that wound up portraying Jio’s financial performance in the best possible light. Analysts have previously noted some anomalies in Jio’s accounting, like the inclusion of six months of revenues in a three-month reporting period. Another accounting decision reveals even more. Jio took advantage of a rule that allowed it to burn through billions of dollars in expenses during its rollout period without the costs showing up on its income statements. Jio’s auditor, Deloitte Haskins & Sells LLP, an Indian affiliate of Deloitte LLP, is conducting its annual review of Reliance’s numbers. Audited results for the year ended March 31 are expected to be disclosed this week, for Jio as well. It will be the first time Deloitte has audited Jio’s sales. Jio will either get Deloitte’s blessing or be pushed closer to norms in international financial reporting. A wholesale change is not expected, but any shift in approach could puncture the profitability story that Reliance has been trumpeting in India. |
