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    Case Study ON Flex Industries Limited: Prepared by Rohin Malhotra

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    Rohin Malhotra
    The case study examines Flex Industries Limited, which despite rapid expansion, faced governance issues that led to acquisitions related to excise duty evasion, campaign financing, and political party financing. Unable to overcome these issues, the company lost market position and saw plummeting stock prices from 2001-2004 as total assets and stock price declined. Better governance and proof of innocence could have helped address the problems and regain stakeholder trust before the court ultimately ruled in the company's favor.

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    Case Study ON Flex Industries Limited: Prepared by Rohin Malhotra

    Uploaded by

    Rohin Malhotra
    138 views5 pages
    The case study examines Flex Industries Limited, which despite rapid expansion, faced governance issues that led to acquisitions related to excise duty evasion, campaign financing, and political party financing. Unable to overcome these issues, the company lost market position and saw plummeting stock prices from 2001-2004 as total assets and stock price declined. Better governance and proof of innocence could have helped address the problems and regain stakeholder trust before the court ultimately ruled in the company's favor.

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    Case study on flex industries

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    Flex Industries_case Study

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    The case study examines Flex Industries Limited, which despite rapid expansion, faced governance issues that led to acquisitions related to excise duty evasion, campaign financing, and political party financing. Unable to overcome these issues, the company lost market position and saw plummeting stock prices from 2001-2004 as total assets and stock price declined. Better governance and proof of innocence could have helped address the problems and regain stakeholder trust before the court ultimately ruled in the company's favor.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    138 views5 pages

    Case Study ON Flex Industries Limited: Prepared by Rohin Malhotra

    Uploaded by

    Rohin Malhotra
    The case study examines Flex Industries Limited, which despite rapid expansion, faced governance issues that led to acquisitions related to excise duty evasion, campaign financing, and political party financing. Unable to overcome these issues, the company lost market position and saw plummeting stock prices from 2001-2004 as total assets and stock price declined. Better governance and proof of innocence could have helped address the problems and regain stakeholder trust before the court ultimately ruled in the company's favor.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    CASE STUDY

    ON
    FLEX INDUSTRIES LIMITED

    PREPARED BY
    ROHIN MALHOTRA
    PROBLEM

    Despite being the most rapidly expanding flexible industries in the world, FLEX
    INDUSTRIES and its owner Ashok Chaturvedi could not hide the lack of governance in
    the company.
    Acquisition on the industries included :-
    1. Excise Duty Evasion
    2. Company printed and supplied material for 1999 election campaign of
    Yashwant Sinha (BJP)
    3. Company financed three political parties between 1999-2000.
    Company unable to get rid of these acquisition and lose their position in the market.
    The stock prices of the FLEX INDUSTRY plummeted.
    STATISTICS

    Total Assets of the company dropped from Rs 9174


    millions to Rs 8530 Million from 2001 to 2004.
    Stock Price of the company falled from 2001 to
    2004.
    SOLUTIONS

    The company should have a better proof to be proved


    non guilty of the acquisition filed against them.
    They should have better governance to make the
    stake holders believe that the acquisitions were false
    and case will be ruled in their favour.
    The court gave judgement in their favour but by that
    time, the damage had been done. It was necessary to
    make better plans to overcome this problem.
    THANKYOU

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