Services About Insights Newsletters Contact
An RMAACA Publication

Red Flags
& Footnotes

One fraud case a week. How the number moved, and why it was tempting. For anyone who reads financial statements and wants to read them better.

By Mahesh Ramanujam, FCA, DISA(ICAI)  ·  Weekly, every Monday

Subscribe on LinkedIn
13
Editions Published
Weekly
Cadence
~12 min
Average Read
SEC · SEBI
Primary Sources

What this is

Most weeks, a regulator somewhere charges a company with accounting fraud — and the coverage stops at "the SEC charged X." The interesting part rarely gets told: how the number moved, and why it was tempting.

That's the gap Red Flags & Footnotes is built for. One reported case per edition, read the way a chartered accountant reads it — mechanism and incentive, not headline.

Who it's for

If you work with financial statements — as an investor, founder, CFO, finance team member, or fellow professional — this is written for you. No motivational content. No jargon for jargon's sake.

Investors Founders CFOs & Finance Teams Auditors CA Professionals
Also From R. Mahesh & Associates
Beyond the Financial Statements
A fortnightly companion series — one company's numbers, every fortnight. What the results told us, and what they made us ask.
Read the archive
All Editions
Latest Edition
13
62.9×
Corporate Guarantees & Joint Venture Exposure

₹1,463 Crore Ceiling. ₹23 Crore History.

Ester Industries' shareholders approved an RPT ceiling with its own joint venture almost 63 times the disclosed three-year history. The guarantee inside it — 85% of the ceiling — is stated at two different figures in the same filing.

24 August 2026 11 min read Ester Industries · ELITe · FY26
Read Edition 13

Previous editions

12
Edition 12 · 17 Aug 2026
The ₹450 Crore Wasn't the Story.
Shareholders approved a ₹450 crore RPT ceiling between LMW and Lakshmi Electrical Control Systems. What actually moved was ₹167.28 crore — roughly 70% of the smaller company's entire annual revenue.
11
Edition 11 · 11 Aug 2026
The company owned the land. Someone else needed the loan.
SEBI barred Zee Entertainment's Subhash Chandra and Punit Goenka for a year over the unauthorised pledge of the company's Hyderabad land to secure ₹726 crore of promoter-linked loans.
10
Edition 10 · 04 Aug 2026
The Numbers Reconciled. Until They Didn't.
Nearly ₹2,000 crore of adverse accounting impact at IndusInd Bank. Internal derivative trades, notional profits, and two senior resignations — over a control question far simpler than the accounting that hid it.
09
Edition 09 · 28 Jul 2026
The Loan Was for EVs. The Money Had Other Plans.
A public company borrowed ₹978 crore to buy electric vehicles. Regulators say a large part of it bought something else entirely — including a luxury apartment.
08
Edition 08 · 21 Jul 2026
The Money Took a Detour. Should the Board Have Asked Why?
A transaction can be perfectly documented. The harder question is whether it had a genuine business purpose — inside the SEBI proceedings against Reliance Infrastructure.
07
Edition 07 · 14 Jul 2026
Not History. A Warning.
Arthur Andersen was one of the world's most respected audit firms — 85,000 people, decades of reputation. Then trust cracked, and it disappeared in months.
06
Edition 06 · 07 Jul 2026
IL&FS: The evergreen loans and the clean opinion
A AAA-rated lender owing ₹91,000 crore defaulted almost overnight. The IFIN book, the loans that round-tripped so bad debt never surfaced, and the audit signature that sat on top of it.
05
Edition 05 · 30 Jun 2026
Who audits the auditors?
An interlude. Four editions asked how nobody saw the fraud; this one turns to the people whose job was to catch it — across Enron, Satyam, Wirecard, Carillion and Evergrande, and the tangle over who is even allowed to discipline an auditor.
04
Edition 04 · 23 Jun 2026
The journal entry that disappeared ₹1,035 crore
Rajesh Exports reported consolidated revenue rivalling Reliance while its standalone Indian business earned a fraction of it. SEBI's forensic auditor asked to see the journal — it was never handed over.
03
Edition 03 · 16 Jun 2026
The bonus that built the fraud
ADM, Part II. How a compensation plan that tied bonuses to one segment's growth target made manipulation rational — and the governance failures that let it run unchallenged for four years.
02
Edition 02 · 09 Jun 2026
The invisible hand in your own pocket
How ADM allegedly moved operating profit between divisions through retroactive intersegment rebates — without ever touching the consolidated P&L.
01
Edition 01 · 02 Jun 2026
The quarter that turned positive without anyone selling more
How a single non-GAAP definition change allegedly turned a quarterly loss into a "first-ever profit" — no extra revenue, just a redefinition.

One case. Every Monday.

Subscribe on LinkedIn and get each edition delivered to your inbox. Free, forever.

Subscribe on LinkedIn →