Scribd
Upload
204 views5 pages

Case Study ON Flex Industries Limited: Prepared 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.

Uploaded by

Rohin Malhotra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
204 views5 pages

Case Study ON Flex Industries Limited: Prepared 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.

Uploaded by

Rohin Malhotra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 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

You might also like