[Archived] 40 Venky's Premises raided by Indian Tax Officials

[AAK]

1 hour ago, philipl said:

Disappearing documents mean REALLY big trouble.

How do we know that's Venkys? It doesn't mention venkys? cheers - sorry, just seen that the venkys are on the board of directors

[Dunnfc]

Just now, AAK said:

How do we know that's Venkys? It doesn't mention venkys? cheers - sorry, just seen that the venkys are on the board of directors

Uttara is a subsidiary of VHPL one of 29.

[dave birch]

It was probably those doing dealings with Venkys in cash selling their shares.

[Dunnfc]

Currently down 3% with around 2.5 hrs of trading left for the day. Expect to see the sales push around 11AM GBT As it stands 8% fall from Friday. And they say no news is good news hahaa!

 

 

[Brian-Potter]

Share price seems to be floating around 2.5 - 3% Down.

One thing worth considering though is the current share price sits at around the 1200 mark, however up until January of this year the share price was around 500. So even with these events Venkys is still worth more than double what it was at the start of the year.

 

[Dunnfc]

Just now, Brian-Potter said:

Share price seems to be floating around 2.5 - 3% Down.

One thing worth considering though is the current share price sits at around the 1200 mark, however up until January of this year share the share price was around 500. So even with these events Venkys is still worth more than double what it was at the start of the year.

 

Yep not helped by crack down illegal abbotoirs and chicken feed now 40 percent lower.

think it'll hit 4 percent by close of play, sales outnumbering the buys 

[Tyrone Shoelaces]

Just now, Dunnfc said:

Currently down 3% with around 2.5 hrs of trading left for the day. Expect to see the sales push around 11AM GBT As it stands 8% fall from Friday. And they say no news is good news hahaa!

 

 

That meeting will have been cancelled because they're too busy discussing events in Blackburn. Not.

[SIMON GARNERS 194]

We could be entirely reliant on Season Ticket Sales as closed Season income....how many did you say we have sold PB?

No way will these sales cover Players Wages and the general day to day operating costs of the club,absolutely no way.

This situation is very bad but like others the hope is that it may force the Raos hand to sell up.

[broadsword]

Venky's selling up is just part one. 

I just hope if we do get shot of them, they're not replaced by similar /worse owners. 

I just hope that matters are completely taken out of their hands

[Parsonblue]

Could we become another Aldershot Town?  The last club, I think, forced to resign from the League because they went bankrupt.  Started up again a few months later but I think they were something like five divisions below the Football League.  Is there anything to stop the Raos simply resigning from the League, shutting up shop and sitting on the land that they own at Ewood and Brockhall?  Ground sharing with Darwen and playing in the same League is beginning to look more of a reality with every passing day.

[Dunnfc]

And back down to five percent am today to go along with Friday's five percent 

[Brian-Potter]

My experience in the PLC and listed companies side of things is limited. However on Friday I asked a colleague who specialises in this area for his views on what's happened. Here is the reply

"Firstly it's prudent to consider that we are not dealing with the FTSE or any other western market which means the regulations will differ.

On the face of things there is little information to base a reasoned view upon and any conclusions drawn from these events are purely speculation at this stage.

I would make the following points:

"Visits" by the tax authorities are not uncommon, can equally be carried out randomly as well as based upon intelligence. The size / number of people involved is irrelevant, it purely relates to the size of the group being investigated. Venkys is a very large multi location company. Visits are always carried out simultaneously at all locations hence the number of people required to implement this will be huge.

There is no indication that Venkys trading position has in any way been impacted or compromised. There is nothing to suggest suspension of trading in their shares is imminent.

Companies throughout the world are investigated every day for tax irregularities. It's a long and drawn out affair especially when relating to large groups for companies. Regularly these investigations find nothing significant and only 10% result in any kind of action.

Unless any sanctions are legally imposed (which is unlikely at this stage) there will be no restriction on the banking facilities or movement of cash within the group. The trading position of a public listed company cannot be compromised without rock solid evidence.

VH Group has 29 subsidary companies listed and the suspicion could relate to just one of those entities. I notice one of them appears to be in someway involved in the film industry, something which has been heavily linked to tax avoidance.

In all honesty at this stage it can be described as no more than a headache for  VH Group and until confirmed information is released from either VH or the tax authorities anything else is pure speculation and conspiracy theories"

An interesting view but doesn't really help us much!

 

 

[JHRover]

I remember reading about this in David Conn's book 'The Beautiful Game?'. I'm fairly sure that he mentions a number of rules in place from the FA that prevent crooked owners from buying a club and then just resigning from the league and selling the assets and land.

Otherwise I'm sure there would have been instances with London clubs in particular where property developers would have taken over stricken clubs like Palace and QPR recently and merely resigned them from the League and bulldozed their grounds for luxury apartments worth millions.

Then I remembered that the FA are by and large spineless cretins who aren't interested in upholding their own rules.

[dave birch]

Just now, Brian-Potter said:

My experience in the PLC and listed companies side of things is limited. However on Friday I asked a colleague who specialises in this area for his views on what's happened. Here is the reply

"Firstly it's prudent to consider that we are not dealing with the FTSE or any other western market which means the regulations will differ.

On the face of things there is little information to base a reasoned view upon and any conclusions drawn from these events are purely speculation at this stage.

I would make the following points:

"Visits" by the tax authorities are not uncommon, can equally be carried out randomly as well as based upon intelligence. The size / number of people involved is irrelevant, it purely relates to the size of the group being investigated. Venkys is a very large multi location company. Visits are always carried out simultaneously at all locations hence the number of people required to implement this will be huge.

There is no indication that Venkys trading position has in any way been impacted or compromised. There is nothing to suggest suspension of trading in their shares is imminent.

Companies throughout the world are investigated every day for tax irregularities. It's a long and drawn out affair especially when relating to large groups for companies. Regularly these investigations find nothing significant and only 10% result in any kind of action.

Unless any sanctions are legally imposed (which is unlikely at this stage) there will be no restriction on the banking facilities or movement of cash within the group. The trading position of a public listed company cannot be compromised without rock solid evidence.

VH Group has 29 subsidary companies listed and the suspicion could relate to just one of those entities. I notice one of them appears to be in someway involved in the film industry, something which has been heavily linked to tax avoidance.

In all honesty at this stage it can be described as no more than a headache for  VH Group and until confirmed information is released from either VH or the tax authorities anything else is pure speculation and conspiracy theories"

An interesting view but doesn't really help us much!

 

 

That's just about I would see it o, though I would wish it otherwise.

Thanks Brian

[arbitro]

Thanks to each poster who has some knowledge/experience of such financial matters and are prepared to share their opinion with the uninitiated. Who knows where this will end but if it brings an end game as far as those wretched people and Rovers are concerned I will certainly be happy.

[Dunnfc]

So Venky’s close the day at 4.59% down from the last close which closed at 5.00% down. A total of 9.59% wiped from the share price since Friday’s news.

Given there appears to be 140,873,336 shares in circulation and as of Friday the costs in RS (Rupees) was 1335.75 it now stands at 1172.00 resulting in a difference of 163.75 RS (Rupees) per share difference.

In English that’s £1.97 per share of value wiped of when multiplied by the shares in circulation that equates to £27.752 MILLION.

[47er]

Just now, Dunnfc said:

So Venky’s close the day at 4.59% down from the last close which closed at 5.00% down. A total of 9.59% wiped from the share price since Friday’s news.

Given there appears to be 140,873,336 shares in circulation and as of Friday the costs in RS (Rupees) was 1335.75 it now stands at 1172.00 resulting in a difference of 163.75 RS (Rupees) per share difference.

In English that’s £1.97 per share of value wiped of when multiplied by the shares in circulation that equates to £27.752 MILLION.

Excellent!

[Bigdoggsteel]

Just now, 47er said:

Excellent!

Why do you think it is excellent? 

[Dreams of 1995]

Any bad news for Venkys is good news to me. However, I do worry about the knock on effect this will have on Blackburn Rovers

[funny-old-game]

Just now, Dreams of 1995 said:

Any bad news for Venkys is good news to me. However, I do worry about the knock on effect this will have on Blackburn Rovers

How can it be worse than this slow painful death of our once proud club.

[Dreams of 1995]

Just now, funny-old-game said:

How can it be worse than this slow painful death of our once proud club.

Very true.

While these shysters may not be on the road to bankruptcy they are certainly bankrupt of any morality. A quick read of this tells you all you need to know about the types of people we are dealing with: http://www.downtoearth.org.in/coverage/lavasa-exposed-33282

And who is a board member of Lavasa Corp? Madam herself. Are there any rules they don't see themselves above?

Vile cretins is the most apt way I can think of describing them. 

[OJRovers]

2 minutes ago, Dunnfc said:

So Venky’s close the day at 4.59% down from the last close which closed at 5.00% down. A total of 9.59% wiped from the share price since Friday’s news.

Given there appears to be 140,873,336 shares in circulation and as of Friday the costs in RS (Rupees) was 1335.75 it now stands at 1172.00 resulting in a difference of 163.75 RS (Rupees) per share difference.

In English that’s £1.97 per share of value wiped of when multiplied by the shares in circulation that equates to £27.752 MILLION.

So the Venkys listed company is worth c£270m of which the family own 51%?

They must have a large private (unlisted) business to be able to afford putting £200m into Rovers. 

[AllRoverAsia]

The tax inspection may have provoked a bout of profit taking. Performance has been rather decent in recent times.

It will be interesting to see what happens over the next week or indeed less of trading.

If sales have been driven by profit taking one would expect money to go back in to push the share price up.

Bad news or continued adverse rumours will negatively impact.

Bear in mind also that the Indian market can be quite volatile.

[tomphil]

Just waiting for the usual suspects to start with the any bad news for Venkys is bad news for us they'll not put any money in now carbunkle, it's already started in a roundabout way.

Guys just go and read through the accounts for the past couple of years particularly the VLL ones. Tap reduced to a trickle some time ago why do you think Carney was flogged all of a sudden ?

We were frozen out well before this episode in India so enough of the veiled excuses for Venkys or the dreaming they were going to do anything other than slash what's left anyway.

 

[RV Blue]

Just now, OJRovers said:

So the Venkys listed company is worth c£270m of which the family own 51%?

They must have a large private (unlisted) business to be able to afford putting £200m into Rovers. 

Yeah, this company (Venky's India Ltd) is only a small(ish) part of Venky's business (which is called the VH Group I think).