According to a study carried out by leading financial portal myiris.com on the financials of more than 1,400 listed companies over the past five years, 200 firms have discrepancies in their annual audited financial results.
The study has said that errors were serious with the balance sheet of a company showing a whopping Rs 216 crore (Rs 2.16 billion) discrepancy.
"109 companies had errors in the balance sheet, 66 in their cash flow statements, while 34 had errors creeping into their profit & loss statements," the study revealed.
Myiris.com Founder and CEO S Swaminathan said, "For all of the companies, one or more numbers simply do not add up. If you add up numbers in schedules under one head, this computed value should tally with total reported for the corresponding item in the main balance sheet or the Profit and Loss (P&L) statement as the case may be.
"We find that for these 209 companies, they don't add up." Outlining the approach adopted by his team, Swaminathan said that the errors were discovered while creating the country's first ever corporate fundamentals database in Extensible Business Reporting Language (XBRL).