IDBI blasts Sri Vasavi accounting practices

 Promoted by Grandhi Eswara Rao, Sri Vasavi Industries had suffered a loss of Rs 14.42 crore on a sales of Rs 107 crore for the accounting year 2002-03.

 However, for the quarter ended September 2003, the company announced a net profit of Rs 5.67 crore on a sales of Rs 96.87 crore.

 Publishing these results in newspapers, the company also came out with some more statements (in the same advertisements) that the ongoing steel and ferro chrome boom would put the company on dividend list during the current year, and the company was planning to double the capacities of steel rolling mill and ferro chrome.

 Taken aback by these statements, IDBI has written a detailed letter on the state of affairs of the company to Hyderabad Stock Exchange in the interest of investors.

 In its letter, IDBI said that Sri Vasavi Industries started defaulting to IDBI since October 2001 despite reporting profits.