Bird Bird Bird Posted November 4, 2013 Author Report Share Posted November 4, 2013 In other news: FK employee bought something from HS18, HS18 shipped it the next day, FK employee cancelled it the day after, and the item was delivered to the watchmen. Abuses ensued on Twitter. Indian companies and social media 101 ! Quote Link to comment Share on other sites More sharing options...
Bird Bird Bird Posted November 4, 2013 Author Report Share Posted November 4, 2013 Im not so sure if you can just believe that information mate. Falsifying ledgers is a pretty serious allegation if you consider the size of a business like Flipkart. It simply cant be a 'widely known fact' because if it was Flipkart would have got their behind handed to them. Its most likely information that has been glorified by certain people who have vested interests. Also, Im not sure if avoiding taxes can be achieved by Flipkart's structure that you have described above. Unless ofcourse, these are 3 different companies all together and they cross charge revenues, thereby avoiding tax/vat audits. Don't think its so easy to avoid paying taxes though. Will be interesting to read up more on this structure(if you have the information). I am into taxation advice and personally advice my clients(individuals and companies) on structuring their incomes, which is completely legal. I've assisted a few big names with their structuring but I've never come across a structure like this helping avoid taxes. Will definitely give me some good knowledge if Im able to read up on this. Well, I'm not into taxation and all, but yeah, the ledger cheating news comes up every damn year, and it's all and all about FK. :/ Quote Link to comment Share on other sites More sharing options...
shekdown Posted November 4, 2013 Report Share Posted November 4, 2013 Well, I'm not into taxation and all, but yeah, the ledger cheating news comes up every damn year, and it's all and all about FK. :/ Thats very interesting. Do you have any links to this that I could read up on? Quote Link to comment Share on other sites More sharing options...
ALPHA17 Posted November 4, 2013 Report Share Posted November 4, 2013 got the same card again.... You want me to purchase the card in Delhi and send it over to you? Quote Link to comment Share on other sites More sharing options...
Bird Bird Bird Posted November 4, 2013 Author Report Share Posted November 4, 2013 Thats very interesting. Do you have any links to this that I could read up on?Please go through the link I attached in my earlier post. FK basically has divided into B2B and B2C companies operating under singular heads. Moreover, as the BW article says, >50% of FK sales are via WS Retail (whereas not more than 25% is allowed under Indian law). Also one of the entities, either B2B or B2C always shows up at a loss on the balance sheets while the other turns profit. I believe it's not a simple evasion, more complicated than that. Also read some articles (2-3 months back or so) explaining how FK was modifying it's ledgers to make themselves look attractive for getting more investors interested. Will google and post if I can find them now. Quote Link to comment Share on other sites More sharing options...
shekdown Posted November 4, 2013 Report Share Posted November 4, 2013 Please go through the link I attached in my earlier post. FK basically has divided into B2B and B2C companies operating under singular heads. Moreover, as the BW article says, >50% of FK sales are via WS Retail (whereas not more than 25% is allowed under Indian law). Also one of the entities, either B2B or B2C always shows up at a loss on the balance sheets while the other turns profit. I believe it's not a simple evasion, more complicated than that. Also read some articles (2-3 months back or so) explaining how FK was modifying it's ledgers to make themselves look attractive for getting more investors interested. Will google and post if I can find them now. The article you've posted explains why its revenue is generated by B2C, because B2B is banned in India(due to FDI norms; which are now being cleared I might add). Also, I cant quite understand the loss scenario you are mentioning because it will be dispelled on two counts: i) The article explicitly mentions that the transactions should be at arms length, if they are arms-length then irrespective of what profit/loss is there in the books of WS Retail; the same would have been in the books of Flipkart as well(albeit margins different due to costs). ii) The consolidated financials will have to disclose the nature of consolidation and will include these entities in the consolidated financials. Now, surely if Flipkart are falsifying ledgers the due diligence team wouldn't have missed that out? You cant just 'falsify' ledgers. Its not as simple as changing a few numbers is it? You need to establish relationships between numbers - revenue and costs, margins, trends, historical results, invoices, agreements, market price, competition etc. All of which is evaluated. And Flipkart did get a massive fresh investment 2 months back! Personally, as much I hate the mistakes that Flipkart make(like the case described by Snake recently), they seem like a sound company to me. If they do go for listing Id definitely invest! Quote Link to comment Share on other sites More sharing options...
Madmage Posted November 4, 2013 Report Share Posted November 4, 2013 I have heard stories of the inflated/falsified account books from friends who are into IB and VC. Quote Link to comment Share on other sites More sharing options...
Stevie G Posted November 10, 2013 Report Share Posted November 10, 2013 has anyone ordered a phone from flipkart? Quote Link to comment Share on other sites More sharing options...
Insane_killer06 Posted November 10, 2013 Report Share Posted November 10, 2013 Lol 4 phones till date. Quote Link to comment Share on other sites More sharing options...
Madmage Posted November 10, 2013 Report Share Posted November 10, 2013 Yeah, ordered the HTC one.. Loads of friends have too. Pretty safe Quote Link to comment Share on other sites More sharing options...
Stevie G Posted November 10, 2013 Report Share Posted November 10, 2013 Thank You thinking or ordering 5S from Flipkart Quote Link to comment Share on other sites More sharing options...
Tukulu Posted November 10, 2013 Report Share Posted November 10, 2013 flipkart mast he, ordered more then 200 novels and more then 50 electronic items, no problem at all and safe like heaven... hahahahah Quote Link to comment Share on other sites More sharing options...
Stevie G Posted November 10, 2013 Report Share Posted November 10, 2013 I will get the standard apple warranty na? Quote Link to comment Share on other sites More sharing options...
Insane_killer06 Posted November 10, 2013 Report Share Posted November 10, 2013 I will get the standard apple warranty na? I wouldn't recommend you to buy 5s from FK at this point as it's not being officially sold by FK but a 3rd party vendor. Quote Link to comment Share on other sites More sharing options...
Stevie G Posted November 10, 2013 Report Share Posted November 10, 2013 So there won't be warranty na? Quote Link to comment Share on other sites More sharing options...
Insane_killer06 Posted November 10, 2013 Report Share Posted November 10, 2013 Ofcourse there will be official warranty. But I haven't heard good stories about 3rd party sellers on FK. http://smartphone.infibeam.com/Mobiles/apple-iphone-5s/P-mobi-39045215675-cat-z.html?primary=1#variantId=P-mobi-43474907223 ^ This is a better option IMO. Quote Link to comment Share on other sites More sharing options...
ALPHA17 Posted November 10, 2013 Report Share Posted November 10, 2013 ^ This is a better option IMO. How? So there won't be warranty na? There will be the standard warranty that comes with every product but flipkart is not responsible unless you face issues within the stipulated time period. Quote Link to comment Share on other sites More sharing options...
Insane_killer06 Posted November 10, 2013 Report Share Posted November 10, 2013 Cuz Infibeam is directly selling it. That's why. Quote Link to comment Share on other sites More sharing options...
ALPHA17 Posted November 10, 2013 Report Share Posted November 10, 2013 (edited) Cuz Infibeam is directly selling it. That's why. How is it directly selling them? Even flipkart sells them directly, anything purchased on that site is their responsibility no matter which 'retailer' is handling the product. A DoA piece will have to be replaced by flipkart, whether it goes back to the retailer / warehouse is secondary here. The thing that Infibeam has in its favour is the cheaper price. Edited November 10, 2013 by ALPHA17 Quote Link to comment Share on other sites More sharing options...
Stevie G Posted November 10, 2013 Report Share Posted November 10, 2013 The Apple Protection plan can be applied to the Iphone bought from Flipkart na? Quote Link to comment Share on other sites More sharing options...
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