Investment Strategist, Transparently.AI

Mark Jolley

Investment Strategist

AI detection of accounting fraud and manipulation

Transparently.AI

Fraud and manipulation of their numbers see companies lose USD1 trillion+ per year for their stakeholders. Transparently.AI has developed an AI system that determines:

1. The likelihood that a company is committing fraud/serious manipulation of their books;
2. Whether it is serious enough to result in total corporate failure;
3. Estimated $ losses to stakeholders;
4. How that manipulation/fraud evolves through time; and
5. Detailed analytics on the forms of manipulation/fraud (e.g. which parts of the accounts, what tricks of the trade, questions for analysts to ask management, where/how to investigate further, etc.).

This is effectively automating the analysis of forensic accountants, activist short sellers, credit analysts, etc to do work that would typically take weeks per company, and instead run it in seconds and for thousands of companies simultaneously.

Critically, this solution frequently alerts users to the presence of serious manipulation risk up to 2-3 years in advance of the wider market and short sellers becoming aware of problems.

Forensic Accounting

<ul>
<li>Learn about India’s worst accounting fraud, including Yes Bank, Satyam Computer, Kingfisher and others in this report.</li>
<li>Misappropriation features prominently in these scandals, in addition to fraudulent reporting and corporate governance failure.</li>
<li>Siphoning of funds from bank loans, in particular, has been a common feature of Indian corporate malfeasance.</li>
</ul>


Learn about India’s worst accounting fraud, including Yes Bank, Satyam Computer, Kingfisher and others in this report.
Misappropriation features prominently in these scandals, in addition to fraudulent reporting and corporate governance failure.
Siphoning of funds from bank loans, in particular, has been a common feature of Indian corporate malfeasance.


Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

<ul>
<li>The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>
 Macro data points: Chinese inflation data; Malaysian and Indonesian GDP growth</li>
<li>
 Companies mentioned:<a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">Taiwan Semiconductor (TSMC) (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/reliance-communications-ltd" target="_blank" data-smartkarma-citation="entities:5197:1" rel="noopener">Reliance Communications (RCOM IN)</a>, Jio</li>
</ul>


The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.

 Macro data points: Chinese inflation data; Malaysian and Indonesian GDP growth

 Companies mentioned:Taiwan Semiconductor (TSMC) (2330 TT), Reliance Communications (RCOM IN), Jio


GEM Weekly (11 Nov 2022): Chinese Inflation, Malaysia, Indonesia GDP; Reliance, Jio, TSMC

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

On 25 August, the Board of <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> announced that they would be meeting on 29 August to consider various capital raising options through equity or equity linked or debt instruments or a combination thereof. The stock dropped 4.2% on 26 August and then gained 1.4% on 27 August.Last evening, <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> announced a 1:14 rights issue (shareholders can subscribe to 1 share for every 14 shares they own) at INR 535/share to raise up to INR 21,000 crores (INR 210 bn; US$2.86bn). That is a 10.1% discount to the last close on the NSE.Subscribers to the issue will need to pay 25% on application and the balance will need to be paid in two additional calls within an overall time horizon of 36 months.The promoter and promoter group will subscribe to the full extent of their entitlement and will also subscribe to any unsubscribed shares in the issue.The record date has not been announced yet and a 'Special Committee of Directors' has been formed to decide other terms and conditions of the offer, including the issue period and record date.Given the small dilution, we do not expect the stock to trade a lot lower today. The stock could trade higher as investors that sold in size on Thursday and Friday re-enter the stock.<a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> has continued to gain subscribers at the expense of <a href="https://www.smartkarma.com/entities/vodafone-idea-ltd" target="_blank" data-smartkarma-citation="entities:15678:1" rel="noopener">Vodafone Idea (IDEA IN)</a> and the rights issue could help cement its position while helping pay the Adjusted Gross Revenue (AGR) dues.

On 25 August, the Board of Bharti Airtel (BHARTI IN) announced that they would be meeting on 29 August to consider various capital raising options through equity or equity linked or debt instruments or a combination thereof. The stock dropped 4.2% on 26 August and then gained 1.4% on 27 August.Last evening, Bharti Airtel (BHARTI IN) announced a 1:14 rights issue (shareholders can subscribe to 1 share for every 14 shares they own) at INR 535/share to raise up to INR 21,000 crores (INR 210 bn; US$2.86bn). That is a 10.1% discount to the last close on the NSE.Subscribers to the issue will need to pay 25% on application and the balance will need to be paid in two additional calls within an overall time horizon of 36 months.The promoter and promoter group will subscribe to the full extent of their entitlement and will also subscribe to any unsubscribed shares in the issue.The record date has not been announced yet and a 'Special Committee of Directors' has been formed to decide other terms and conditions of the offer, including the issue period and record date.Given the small dilution, we do not expect the stock to trade a lot lower today. The stock could trade higher as investors that sold in size on Thursday and Friday re-enter the stock.Bharti Airtel (BHARTI IN) has continued to gain subscribers at the expense of Vodafone Idea (IDEA IN) and the rights issue could help cement its position while helping pay the Adjusted Gross Revenue (AGR) dues.

Bharti Airtel's Large Partly Paid Rights Offering

Over the last couple of days, news agencies have reported that Bharti Telecom is seeking Government approval for an infusion of INR 49 billion (US$690m) from <a href="https://www.smartkarma.com/entities/singapore-telecommunications-limited" target="_blank" rel="noopener" data-smartkarma-citation="entities:20:1">Singtel (ST SP)</a> and other foreign entities. If this goes through, it will take the foreign shareholding in Bharti Telecom above 50%.The implication is that Bharti Telecom's stake in <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:953:1">Bharti Airtel (BHARTI IN)</a> would be reclassified from domestic to foreign, and foreign shareholding in <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:953:1">Bharti Airtel (BHARTI IN)</a> would exceed the maximum permissible limit of 74%. Even if the foreign shareholding limit in <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:953:1">Bharti Airtel (BHARTI IN)</a> is increased to 100%, there will be implications for the stock in global indices.

Over the last couple of days, news agencies have reported that Bharti Telecom is seeking Government approval for an infusion of INR 49 billion (US$690m) from Singtel (ST SP) and other foreign entities. If this goes through, it will take the foreign shareholding in Bharti Telecom above 50%.The implication is that Bharti Telecom's stake in Bharti Airtel (BHARTI IN) would be reclassified from domestic to foreign, and foreign shareholding in Bharti Airtel (BHARTI IN) would exceed the maximum permissible limit of 74%. Even if the foreign shareholding limit in Bharti Airtel (BHARTI IN) is increased to 100%, there will be implications for the stock in global indices.

Bharti Airtel - Implications of Potential Singtel Investment in Bharti Telecom

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Equity Bottom-Up

In this Insight, we present some of the key catalysts that argue for a Buy on <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> in spite of a sharp rally post Q2 and AGR rulings. Our target price is based on the expected market consolidation, that could lead to subscriber additions, growth in ARPU and the revenue potential that Africa business offers. Compared to the Industry, Airtel's balance sheet is already under repair mode, along with further opportunities for deleveraging. <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a>  seems to be the best positioned to gain from current market consolidation, offering a better return potential compared to Singtel.

In this Insight, we present some of the key catalysts that argue for a Buy on Bharti Airtel (BHARTI IN) in spite of a sharp rally post Q2 and AGR rulings. Our target price is based on the expected market consolidation, that could lead to subscriber additions, growth in ARPU and the revenue potential that Africa business offers. Compared to the Industry, Airtel's balance sheet is already under repair mode, along with further opportunities for deleveraging. Bharti Airtel (BHARTI IN)  seems to be the best positioned to gain from current market consolidation, offering a better return potential compared to Singtel.  

Bharti Airtel (BHARTI IN) | The Last One Standing

India

Reliance Communications Ltd. offers integrated telephone services. The Company offers fixed line and wireless voice, data and video transmission services, and Internet access.

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Reliance Communications (RCOM IN)

India's Worst Accounting Scandals

Report documents India's major accounting fraud cases including Yes Bank, Satyam Computer and others. Misappropriation features prominently, with...

Mark Jolley

GEM Weekly (11 Nov 2022): Chinese Inflation, Malaysia, Indonesia GDP; Reliance, Jio, TSMC

The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of...

Wium Malan, CFA

Bharti Airtel's Large Partly Paid Rights Offering

Bharti Airtel has announced a US$2.8bn rights offer. This is a partly paid offering with 25% paid upfront and 2 calls within 36 months. Expect the...

Brian Freitas

Bharti Airtel - Implications of Potential Singtel Investment in Bharti Telecom

Over the last couple of days, news agencies have reported that Bharti Telecom is seeking Government approval for an infusion of INR 49 billion...

Brian Freitas

Bharti Airtel (BHARTI IN) | The Last One Standing

In this Insight, we present some of the key catalysts that argue for a Buy on Bharti Airtel (BHARTI IN) in spite of a sharp rally post Q2 and AGR...

Pranav Bhavsar

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