Monday, July 30, 2007

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HELIOS AND MATHESON ........... THE FRAUD COMPANY.........?

HELIOS AND MATHESON ... THE FRAUD COMPANY
This blog has been created in the interest of all the investors who are being cheated by the promoters of helios and matheson ....
All share holders are advised to write to the regulatory authorities. Who if we all share holders collectively write to them in large numbers will then be forced to start an investigation in the interest of all of us.
We Should also write to the media who will also help us in this noble cause. All are requested to provide any email id of the requlatory authorities and media person's.

The following messages are on money control about Helios

You are here : Moneycontrol MMB Stocks Helios and Matfraud company--operated by fraud broker (8) 28-Jul-07 22:15Tracked by (0)Posted by: ribug on ( 28-Jul-07 22:15 ) Price : BSE: Rs 140.85 ( -3.92 % ), NSE: Rs. 140.85 ( -3.66 % ) this is fraud copaby operated by fraudelent operator motilal oswal; price may be operated any time any day as he has terminals all across india ; pls be careful about this mafia of operators let us join abd fightdr sunil 9915068992 yahoo id --ribuge
Posted by: Guest on (30-Jul-07 10:58 ) Price : BSE: Rs 142.50 ( 1.17 % ), NSE: Rs. 142.75 ( 1.35 % )Yes even i think this is a fraud company. I have visited their Chennai office. Hardly about 10 people are working. I wanted to know their development centre address. Their reply was to visit the web site. This ia really a paper company and I wonder why the Stock exchange allows such companies to trade.
Posted by: Guest on (30-Jul-07 15:25 ) Price : BSE: Rs 140.20 ( -0.46 % ), NSE: Rs. 139.60 ( -0.89 % )I agree with you that they are a paper company if all investor join hands and write to sebi, bse, nse in mumbai and ROC in chennai to start investigation on this company to protect the interest of all the investor like us i think a massive compaign collectively to all the above regulatory authorities will definitely help to expose such fraud company's.
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Posted by: Guest on (30-Jul-07 15:16 ) Price : BSE: Rs 140.10 ( -0.53 % ), NSE: Rs. 139.25 ( -1.14 % )yes i fully agree it is fraud company it is not at all 16yrs IT company they were financial express a money changing company only in 1999 they change their name to helios mathesen to take benefit of dot com boom days. they have cheated many company's in the past and have a criminal background please read Suchita Dalal's articles on them also check who are their auditors it is one small company name venkatesh & co these auditors partner audit licence was cancelled by the institute of charted accountants as they were involved in a Rs 500 cr chit fund scam. this talk will fall to Rs 50 soon better sell and get out....

Sucheta Dalal's article 13 feb 2006
The flip side of the great Indian IT story - 13 Feb, 2006. http://www.suchetadalal.com/articles/display/76/1961.article
• A clutch of smaller IT firms are manipulating share prices and rules • The H&M-Moksha technologies deal raises a number of such questions • Do exchange disclosure rules apply to only those who abide by these?Pawan Kumar’s immediate previous job was as co-founder of Moksha, another IT company, that has over 500 employees and three international entities—Moksha Technologies Inc, USA; Moksha Technologies Pte, Singapore; and Moksha Technologies, Bangalore. Pawan Kumar had co-founded this company with Rajeev Sawhney, a non-resident IndianMoksha hit the headlines on April 12 last year, when Helios & Matheson (H&M), announced a $19 million deal to acquire it and said that Pawan Kumar would continue as its CEO. H&M’s share price soared. However, Moksha’s co-founder, Rajeev Sawhney, was allegedly shut out from this action and initiated legal action. Now cut to February 7, when Pawan Kumar moves to Scandent and has apparently cut his ties with Moksha and H&M. I learn that Rajeev Sawhney has now acquired full control of Moksha through a settlement with Kumar. In an e-mail to friends, Pawan Kumar admits to having “signed a definitive agreement to sell my interest in Moksha and bought my partner’s interests in Fortress and Jadoo Works.” This is accompanied by his new coordinates Does this mean that the H&M-Moksha deal has fallen through or was never sealed? There is no announcement to the stock exchanges or to shareholders. The only indicator that things are not all well is the share price. H&M had announced a 89% jump in its net profit for the fourth quarter (ending December 31, 2005), causing the share price to spiral up from Rs 206 at the end of December to Rs 257 on January 19. But while the Sensex crossed 10,100, H&M slipped down to Rs 218 on February 10.Meanwhile, the State Bank of Mauritius (SBM) has received a letter from Rajeev Sawhney, founder of Moksha and Pawan Kumar’s partner, questioning how the bank opened an account in the name of Moksha Technologies Ltd, Mauritius, with the signature of only one director, Pawan Kumar. More pertinently, the account was used to borrow $13.5 million on June 28, 2005, which was transferred to H&M through SBM’s Chennai branch. Why was Moksha borrowing money and transferring it to H&M rather than the other way around?Sawhney’s letter further says Pawan Kumar, director and shareholder, has sold his stake/shares to the former and moved to his next assignment. As in the DSQ software case, stock exchange disclosure rules are only for those who choose to follow these. Here is a case where at least two listed companies owe an explanation to their shareholders. Ironically, stock exchanges routinely cross-check media reports about companies, but what is not reported to the bourse or by the media remains nicely buried
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Sucheta Dalal article 19 feb 2006
Helios & Matheson’s (H&M) $19 million cash deal to acquire Vmoksha, which had sent its share price soaring past Rs 225 last year, is getting curiouser. H&M omitted to tell stock exchanges that the deal has gone sour after Rajeev Sawhney, Vmoksha’s founder, raised several serious issues and objections. Early this year, Pawan Kumar (former chief of DSQ Software) who was Vmoksha’s other partner sold his stake to Sawhney and stepped into Ramesh Vangal’s shoes at Scandent Solutions. Only last week, H&M informed stock exchanges that it had initiated arbitration proceedings regarding the Vmoksha deal. While investors continue to remain clueless about details, Rajeev Sawhney has contested H&M’s claims. His letter, copied to regulators and stock exchanges, indicates that H&M’s efforts to invoke arbitration began only on February 10, 2006, after the failed deal became public. Investigations in this case are likely to revolve around a $13.5 million loan taken by Vmoksha on the sole authorisation of its former chief, Pawan Kumar, from State Bank of Mauritius. The money was transferred to H&M, allegedly against allotment of preference shares to Vmoksha’s promoters. The loan was allegedly taken without Rajeev Sawhney’s knowledge or consent, but curiously enough, backed by the personal guarantees of H&M’s Chairman and its Managing Director. Sawhney has sent all documents and objections to various regulators and contends that there is no case for arbitration since the deal has lapsed. This raises serious questions about the nature of the ‘‘all cash’’ Vmoksha deal and the information provided to H&M’s public shareholders. Stock exchange officials say that they are awaiting answers from the H&M management. This case could turn into a test of the efficacy of the recently tightened Clause 49 of the Listing Agreement of stock exchanges. Corporate India will be watching to see how capital market regulator and the bourses treat serious disclosure lapses and whether there are any consequences to wrong or incomplete disclosure. Market savvy The brewing battle between Helios & Matheson (H&M) and Rajeev Sawhney over Vmoksha has brought to light several interesting facets of its operation, through a due diligence report by Pricewaterhouse Coopers (PWC). We learn that H&M started life in 1991 as a money changing company named Express Financial Exchange Pvt Ltd. It changed its name and switched to software development in time to catch the dotcom boom in 1999, raised public money, got listed and quickly set up several international subsidiaries. Yet, PWC says it could obtain only sketchy details about its contracts and income recognition. The report further says that 82 per cent of the promoter shareholding (3.6 million shares of G. Annapurna and Padmaja) is pledged with Bank of India, UTI Bank and State Bank of Mauritius and five of its top 10 shareholders are brokerage firms; the public shareholding is 36 per cent. PWC says that the company had 77 requests for duplicate shares (duplicate share certificates have been issued to its fifth-largest shareholder Astral Ventures) and it failed to get a direct confirmation of ownership by different parties as registered by the two depositories, NSDL and CDSL.Check more on H&M Sucheta - Check the H&M promoters backgrounds especially how in earlier venture-Ficidies India- they defauled on loans to banks such as SBI &Grindlays and gave the slip to several suppliers and employees .Decrees were also passed in courts against them at that time You should begin an investigation of H&M's reported financials especially its cash flows - which give pointers to the real picture of how the company is managing its numbers .Such a high level of bank&other borrowings and huge levels of capitalised intangible assets for a company -which reports having conistent and good profits/margins- seems to indicate the numbers are cooked up This column itself raises a lot of pertinent questions about the deal itself and the transparency of both partiesH&M started as a NBFC-Express FInancial exchange Ltd in1991 and after 8 years changed tracks to IT in 1999 and came out with an IPO .Even at that time several artciles incl in FE raised issues about the quality of iis disclosures and numbers.http://www.valuenotes.com/dhan/99oct26.asp?ArtCd=3078&Cat=C&Id=693http://www.expressindia.com/fe/daily/20000108/fns08064.htmlThe
H&M story continued from 1999 till 2005- they had a good run with the nos prsented by them-but how far these are correct is anybodys guess Especially in 2004 and 05 with news of such"cash" deals which now turn out to be not deals or not "cash" deals at all Seems they have not learnt form their past and are repeating their past over &over again Anyhow this time atleast some investors in the H&M scrip have benefited if they booked profits when prices were high --------------------------------------------------------------------------------------------------

Business LineBusiness Daily from THE HINDU group of publications Friday, Oct 13, 2006 - ePaper http://www.thehindubusinessline.com/2006/10/13/stories/2006101300960500.htm
Info-Tech - Courts/Legal Issues Vmoksha seeks compensation from Helios and Matheson Our Bureau - Chennai , Oct. 12Vmoksha Technologies Ltd has claimed a compensation of Rs 50 crore from the Chennai-based Helios and Matheson for not fulfilling the obligation of merger between the two in 120 days as per the Sales Purchase Agreement dated May 11, 2005.The Bangalore-based IT company has also claimed a compensation of Rs 200 crore "towards loss, hardship and mental agony suffered on account of acts of omission and commission by Helios and Matheson," according to a Vmoksha statement.The statement, featured in the company's Web site, also carries a copy of the letter sent on July 6, 2005 to Mr Rajeev Sawhney, Vmoksha founder, by Akshar Maherally/Prema Joysuree, Secretary and Administrator, International Financial Service, a management company incorporated in Mauritius.The letter says, "As requested, please find attached the advice slip received from State Bank of Mauritius Ltd for the funds transfer to Helios & Matheson Information. As mentioned, we are completely unaware how this transaction went through and when the company opened a bank account with State Bank of Mauritius Ltd, without a board resolution." http://www.mauritius-vmoksha.com/------------------------------------------------------------------------------------------------
New York Post - article on 07 Aug 2006

STOCK VINDALOO - SHADY INDIAN INVESTORS TAKE GRIP OF A U.S. FIRM - Aug 7, 2006.[Kannan Ramasamy] had been running the U.S. operations of an Indian outsourcing company called Scandent Group, when in 2002, [Dinesh Dalmia] sold the company millions of dollars worth of U.S. business contracts that he had apparently stolen from his own backers in India.In early 2006, yet another man with close ties to Dalmia, [Pawan Kumar], joined Scandent in a top job, as head of its operations in India. Kumar had earlier worked directly for Dalmia as chief executive of a Dalmia-controlled company called DSQ Software Ltd.As it happened, DSQ Software was the very same company that Dalmia had looted of its U.S. business contracts. Now, Scandent was apparently inviting Dalmia's top man in India back to help manage the stolen assets.
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On Sucheta Dalal’s website

The brewing battle between Helios & Matheson (H&M) and Rajeev Sawhneyover vMoksha has brought to light several interesting facets of itsoperation, through a due diligence report by Pricewaterhouse Coopers(PWC). We learn that H&M started life in 1991 as a money changingcompany named Express Financial Exchange Pvt Ltd. It changed its nameand switched to software development in time to catch the dotcom boomin 1999, raised public money, got listed and quickly set up severalinternational subsidiaries. Yet, PWC says it could obtain only sketchydetails about its contracts and income recognition. The report furthersays that 82 per cent of the promoter shareholding (3.6 million sharesof G. Annapurna and Padmaja) is pledged with Bank of India, UTI Bankand State Bank of Mauritius and five of its top 10 shareholders arebrokerage firms; the public shareholding is 36 per cent. PWC says thatthe company had 77 requests for duplicate shares (duplicate sharecertificates have been issued to its fifth-largest shareholder AstralVentures) and it failed to get a direct confirmation of ownership bydifferent parties as registered by the two depositories, NSDL andCDSL.
Check more

Check more on H&M Sucheta- Check the H&M promoters backgroundsespecially how in earlier venture-Ficidies India- they defauled onloans to banks such as SBI &Grindlays and gave the slip to severalsuppliers and employees .Decrees were also passed in courts againstthem at that time You should begin an investigation of H&M's reportedfinancials especially its cash flows - which give pointers to the realpicture of how the company is managing its numbers .Such a high levelof bank&other borrowings and huge levels of capitalised intangibleassets for a company -which reports having conistent and goodprofits/margins- seems to indicate the numbers are cooked upThis column itself raises a lot of pertinent questions about the dealitself and the transparency of both partiesH&M started as a NBFC-Express FInancial exchange Ltd in1991 and after8 years changed tracks to IT in 1999 and came out with an IPO .Even atthat time several artciles incl in FE raised issues about the qualityof iis disclosures and numbers.
The H&M story continued from 1999 till 2005- they had a good run withthe nos prsented by them-but how far these are correct is anybodysguess Especially in 2004 and 05 with news of such"cash" deals whichnow turn out to be not deals or not "cash" deals at all Seems theyhave not learnt form their past and are repeating their past over&over again Anyhow this time atleast some investors in the H&M scriphave benefited if they booked profits when prices were high
Narayan K
__________________________
Sucheta Dalal
29th January, 2007 (Indian Express - Mumbai/New Delhi)
For over a year now, Rajeev Sawhney, the non-resident Indianfinancier of Vmoksha Technologies has been knocking the doors ofevery regulator to establish gross irregularities in a deal to sellvMoksha to Helios & Matheson (H & M) Information Technology. Healleges that Pawan Kumar, his partner and chief of Indian operationssurreptitiously opened an account with State Bank of Mauritius in thename of Vmoksha Technologies. The bank in turn opened this accountwith Pawan Kumar's signature alone and also lent it $13.5 million (on28th June 2005) that was swifly transferred to H & M. Sawhney says,if H & M bought vMoksha at $ 19 million, why was vMoksha transferring$13.5 million to it? Sawhney's complaints to the two national boursesand the market regulator have been ignored.
But a criminal complaint filed with the Metropolitan magistrate'scourt in Mumbai was admitted on 19January and summons issued to StateBank of Mauritius officials, H & M and Pawan Kumar. This may finallysolve the mystery of the alleged sale of vMoksha to H & M beforeanother litigation filed at Chennai winds its way through the legalsystem.
We have filed a complaint to the following 3, They have requested thatmore and more shareholders write to them so that it will be possibleto conduct an enquiry:




__________________________

All shareholders are requested to write the following draft letter to :-
July 30, 2007
To
The Regional Director,
Government of India,
Ministry of Company Affairs,
Shastri Bhavan, Block 1,
V Floor,26, Haddows Road,
Chennai – 600 006

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no ____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that the Company's share price had fluctuatedabnormally in the past years which need to be investigated.
In fact in 2nd June 2005, they published that they were acquiring aCompany called vMoksha Technologies Private Limited which did notfructify, because of this the share price went up from Rs. 73/- pershare to Rs. 500/- per share.
In my opinion the company is inflating its earnings and also showingto the general public that they are taking over companies and thenrigging the company's share price thereby defrauding all the publicwho would lose money.
I request you to investigate the affairs of this company in theinterest of the shareholders and also in public interest since one daythis will become a major concern for all shareholders who would losetheir savings.
Thanking you,Yours sincerely,
(Shareholders Name and signature)
-----------------------------------------------------------
All shareholders are requested to write the following draft letter to :-
July 30, 2007
To
The Regional Director,
Government of India,
Ministry of Company Affairs,
Shastri Bhavan, Block 1,
V Floor,26, Haddows Road,
Chennai – 600 006

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that H & M have committed a fraud with vMokshaTechnologies Limited, Mauritius for the following matters:1. Opening of Bank Account with State Bank of Mauritius in the name ofvMoksha Technologies Limited, Mauritius2. A forged Circular Resolution duly signed by Mr. Pawan Kumar withouttaking the authority or the approval of the other Directors3. Loan was applied for $13.5 Million on 28th June 2005 with StateBank of Mauritius4. Loan was approved by State Bank of Mauritius, Mumbai Branch also on28th June 2005.5. Funds are duly credited into the Bank Account of Vmoksha Mauritiusand on the same day the funds were transferred to Helios & MathesonChennai Account with the State Bank of Mauritius Chennai Account6. State Bank of Mauritius took a lien letter for pledge of theseproceeds/funds from Helios & Matheson.7. Helios & Matheson have immediately transferred back the same amountto the account opened in the name of Vmoksha Mauritius.A criminal complaint has been filed in the courts at Mumbai againstHelios & Matheson and its Directors for fraud.In fact the details of this fraud is know to all and is all over the internet.I request you to investigate the affairs of this company in theinterest of the shareholders and also in public interest since one daythis will become a major concern for all shareholders.
Thanking you,Yours sincerely,
(Shareholders Name and signature)
____________________________________
All shareholders are requested to write the following draft letter to :-
July 30, 2007
The Regional Director,
Government of India,
Ministry of Company Affairs,
Shastri Bhavan, Block 1,
V Floor,26, Haddows Road,
Chennai – 600 006

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that State Bank of Mauritius also took personalguarantees of Mr. Ramachandran, Chairman and Mr. G K Muralikrishna ofM/s. Helios & Matheson Information Technology Limited for granting ofthe fraudulent loan of US$13.5 Million to vMoksha TechnologiesLimited, Mauritius
The Directors have violated the provisions of FEMA 1999 and this willneed to be investigated. Your investigations on how the company andits directors will help the public interest and the governmentauthorities to check what this company is doing.
Please do the needful.
Thanking you,Yours sincerely,

(Shareholders Name and signature)
--------------------------------------------------------------------------------------------


All shareholders are requested to write the following draft letter to :-
July 30, 2007
The Regional Director,
Government of India,
Ministry of Company Affairs,
Shastri Bhavan, Block 1,
V Floor,26, Haddows Road,
Chennai – 600 006

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio No____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that the Auditors of Helios & Matheson since inceptionare M/s. Venkatesh & Company who was the Auditors of RoyapettahBenefit Fund Nidhi Limited – Chennai. Royappettah Benefit Fund NidhiLimited was the fund which cheated laksh of depositors in Chennai andother places.
I have noticed that one of the partners of M/s. Venkatesh & Companyhas been held guilty of misconduct by the council of the Institute ofChartered Accountants and the same partner was involved in theacquisition of a company called vMoksha Technologies Private Limited,Bangalore.
I as a shareholder of the Company want your department to investigatehow this firm, has continued to be a director that too of a listedcompany which is also involved in price rigging and fraudulentactivities.
Thanking you,Yours sincerely,
(Shareholders Name and signature)

_______________________________________________________________
All shareholders are requested to write the following draft letter to :-


July 30, 2007
Registrar of Companies
Mr. HarishBlock No. 6,
B Wing, 2nd Floor,
Shastri Bhavan, 26,
Haddows Road,
Chennai – 600 034

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no ____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that the Company's share price had fluctuatedabnormally in the past years which need to be investigated.
In fact in 2nd June 2005, they published that they were acquiring aCompany called vMoksha Technologies Private Limited which did notfructify, because of this the share price went up from Rs. 73/- pershare to Rs. 500/- per share.
In my opinion the company is inflating its earnings and also showingto the general public that they are taking over companies and thenrigging the company's share price thereby defrauding all the publicwho would lose money.
I request you to investigate the affairs of this company in theinterest of the shareholders and also in public interest since one daythis will become a major concern for all shareholders who would losetheir savings.
Thanking you,Yours sincerely,
(Shareholders Name and signature)
---------------------------------------------------------------------------------------
All shareholders are requested to write the following draft letter to :-
July 30, 2007
Registrar of Companies
Mr. HarishBlock No. 6,
B Wing, 2nd Floor,
Shastri Bhavan, 26,
Haddows Road,
Chennai – 600 034

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.I have noticed that H & M have committed a fraud with vMokshaTechnologies Limited, Mauritius for the following matters:1. Opening of Bank Account with State Bank of Mauritius in the name ofvMoksha Technologies Limited, Mauritius2. A forged Circular Resolution duly signed by Mr. Pawan Kumar withouttaking the authority or the approval of the other Directors3. Loan was applied for $13.5 Million on 28th June 2005 with StateBank of Mauritius4. Loan was approved by State Bank of Mauritius, Mumbai Branch also on28th June 2005.5. Funds are duly credited into the Bank Account of Vmoksha Mauritiusand on the same day the funds were transferred to Helios & MathesonChennai Account with the State Bank of Mauritius Chennai Account6. State Bank of Mauritius took a lien letter for pledge of theseproceeds/funds from Helios & Matheson.7. Helios & Matheson have immediately transferred back the same amountto the account opened in the name of Vmoksha Mauritius.
A criminal complaint has been filed in the courts at Mumbai againstHelios & Matheson and its Directors for fraud.
In fact the details of this fraud is know to all and is all over the internet.I request you to investigate the affairs of this company in theinterest of the shareholders and also in public interest since one daythis will become a major concern for all shareholders.
Thanking you,Yours sincerely,
(Shareholders Name and signature)
-------------------------------------------------------------------------------------------
All shareholders are requested to write the following draft letter to :-
July 30, 2007
Registrar of Companies
Mr. HarishBlock No. 6,
B Wing, 2nd Floor,
Shastri Bhavan, 26,
Haddows Road,
Chennai – 600 034

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio no____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that State Bank of Mauritius also took personalguarantees of Mr. Ramachandran, Chairman and Mr. G K Muralikrishna ofM/s. Helios & Matheson Information Technology Limited for granting ofthe fraudulent loan of US$13.5 Million to vMoksha TechnologiesLimited, Mauritius
The Directors have violated the provisions of FEMA 1999 and this willneed to be investigated. Your investigations on how the company andits directors will help the public interest and the governmentauthorities to check what this company is doing.
Please do the needful.
Thanking you,Yours sincerely,
(Shareholders Name and signature)



------------------------------------------------------------------------------------------------

All shareholders are requested to write the following draft letter to :-
July 30, 2007
Registrar of Companies
Mr. HarishBlock No. 6,
B Wing, 2nd Floor,
Shastri Bhavan,
26, Haddows Road,
Chennai – 600 034

Subject: Criminal ComplaintCompany Name: Helios and Matheson Information Technology LimitedRegistration No: L65921TN1991PLC020443

I am a shareholder of Helios and Matheson Information TechnologyLimited ( Folio No____) having its office at Adwave Tower, 9 SouthBoag Road, T. Nagar, Chennai – 600 017.
I have noticed that the Auditors of Helios & Matheson since inceptionare M/s. Venkatesh & Company who was the Auditors of RoyapettahBenefit Fund Nidhi Limited – Chennai. Royappettah Benefit Fund NidhiLimited was the fund which cheated laksh of depositors in Chennai andother places.
I have noticed that one of the partners of M/s. Venkatesh & Companyhas been held guilty of misconduct by the council of the Institute ofChartered Accountants and the same partner was involved in theacquisition of a company called vMoksha Technologies Private Limited,Bangalore.
I as a shareholder of the Company want your department to investigatehow this firm, has continued to be a director that too of a listedcompany which is also involved in price rigging and fraudulentactivities.
Thanking you,Yours sincerely,

(Shareholders Name and signature)
------------------------------------------------------------------------------------------------
All shareholders are requested to write to the following also if they so desire :-
Address of Authorities :
Shri P.K Das Special Director
Director of Enforcement
Enforcement Directorate 6th Floor,
Lok Nayak Bhawan Khan Market
New Delhi – 110003

Shri Sudhir Nath Director (Enforcement)
Directorate of Enforcement
Enforcement Directorate,
6th Floor Lok Nayak Bhawan
Khan Market New Delhi – 110003

Mr.Arun Kumar Join Director (Special Crimes)
Central Bureau of investigation
1st Floor, Block No 4 CGO Complex
New Delhi – 110003

The Assistant Director (Interpol)
Central Bureau of Investigation
Block No.4, CGO Complex
Lodhi Rodhi New Delhi 110003

Mr.Jitesh Khosla
Joint Secretary
Department of Company Affairs
Ministry of finance Government of India
Shastri Bhawan Dr.R.P.Road
New Delhi - 110001

The Chairman
Foreign Investment promotion Board
Department of Economic Affairs
Ministry of Finance North Block
New Delhi - 110001
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Dear shareholders,
I have the following email Id’s of some regulatory authorities.

The following are of media person’s and also RBI and CBI.
suchetadalal@yahoo.com;
A lot of shareholders have provided email Id's of media. (Thank You)

Sub: The Auditors of this fraudulent company 'M/S Helios & Matheson"are M/S. Venkatesh and Co

Dear Shareholders

We bring forth to you all another challenge for our regulators on afraudulent company listed on the BSE / NSE – M/S Helios & Mathesoninformation Technologies Ltd Chennai.
The Auditors of this fraudulent company 'M/S Helios & Matheson "areM/S. Venkatesh and Co

Mr. V. DasaratyPartnerVenkatesh & Co.Chartered Acccountants151, Sri RangaMambalam High RoadT. Nagar,Chennai 600017Tel 91-44-28144763
This Audit firm M/S Venkatesh & Co Chennai have a reputation inChennai of representing from inception only fraudulent companies.
The confirmation of this statement can be noted from the followingmessages / articles.
M/S Venkatesh & Co were the auditors of the:
'Royapettah Benefit Fund Nidhi Limited' - Chennai
This fund cheated depositors for an amount of 500 crores.
M/S Venkatesh & Co were their Auditors since inception similar totheir presently being Auditors for M/S Helios & Matheson.- Chennai. _____________________________________________________________________
Financial DailyFrom THE HINDU group of publicationsSunday, August 20

CLB to set up new board for RBF NidhiOur Bureau
CHENNAI, Aug. 19

THE Company Law Board would constitute a new board of directors forthe Chennai-based RBF Nidhi Ltd in the first week of September. Mr.K.J. Pappachen, director of RBF Nidhi, told a press conference thatthe earlier CLB-constituted board had resigned en masse due todifferences over the appointment of auditors. All but Mr. Pappachenhad sent in their resignations to the CLB on July 12, a day after theboard had approved the appointment of Sivaram & Raj, charteredaccountants, to undertake a special audit that would look into thepresent financial situation of the nidhi. He said that four directorsour of six did not want a change of auditors, (Venkatesh and Company,who were the auditors of the nidhi since its inception), but werepersuaded to accept new auditors. ``They (Venkatesh and Company) didnot perform their role diligently as auditors and they also colludedwith the management to paint a wrong picture in respect of finances,and they did not deserve to be auditors,'' Mr. Pappachen alleged. TheCLB had asked the board to function till August 31 after which a newboard would be constituted. He also opined that the new board shouldhave majority representation from depositors (unlike the earlierwhere, there was only one depositor representative on the board). Itmight be noted that Mr. Pappachen is a depositor representative on theboard of directors and is also the only director who did not submithis resignation when others did.
Please note that one of the partners of Venkatesh & Co has been heldguilty of misconduct by the council of the Institute of CharteredAccountants.
Also a partner of PWC (and now again PWC involved in theHelios/VMoksha fraudulent deal)
Panel of Auditors>>Notice20th January, 2005
IRDA/NOT/F&A/067/Jan-05Notice
A. The Institute of Chartered Accountants of India (ICAI) vide Lr. No.PD/333/2004-05, dt. October 28, 2004 has intimated to the Authoritythe list of members who have been held guilty of misconduct by theCouncil of the ICAI. Accordingly the names of the following CharteredAccountants have been removed from the Panel of Auditors maintainedwith the Authority.
1. K.H. Vachha, M/s Price Waterhouse, Kolkata (M.No. 30798)2. 2. S. Govindarajan, M/s Venkatesh & Co.(M.No. 18339)
B. The ICAI has also forwarded the list of the firms where there is adispute among the partners with regard to retirement of a partner.Names of these which are also empanelled with the Authority areindicated below:
1. M/s Sri Ravi Varma & Co., New Delhi (FRN 000859 N)2. M/s Hem Sandeep & Co., New Delhi (FRN 09907 N)3. 3. M/s Bharakatia & Co., Jaipur (FRN 001637 C)
Insurers are requested to note the same for requisite necessary actionat their end.
(C.S. Rao)Chairman
Please note that in the 'RBF' fraud M/S State Bank of Mauritius – is involved
(Presently State Bank Of Mauritius is involved in the fraud committedby M/S Helios & Matheson in connivance with The State Bank ofMauritius in the VMoksha deal)
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Thursday, Feb 23, 2006Chennai
Supreme Court stays arrest of former RBF Nidhi CEOJ. VenkatesanApex Court issues notice to State
NEW DELHI: The Supreme Court has stayed the arrest of the former ChiefExecutive Officer of Royapettah Benefit Fund Nidhi Limited, K.Rajagopal, on his anticipatory bail application in a case of allegedbreach of trust and cheating. The Bench of Justice K.G. Balakrishnanand Justice P.P. Naolekar, issued notice to the State Government on aspecial leave petition against a Madras High Court order rejecting hisanticipatory bail. In his petition, Mr. Rajagopal said this was atypical case of abuse of the criminal justice system by vestedinterests to sabotage recovery of huge amounts of depositors' moneyfrom defaulters and money launders, initiated by him in his capacityas the CEO of the Board of Directors of RBF Ltd., constituted underthe directions of the Company Law Board and Department of CompanyAffairs. This case also brought to the fore the mechanism by whichpersons, who went after the defaulters of public money, could beharassed and victimised. The complaint against him from a depositorwas that without any power, he transferred Rs. 20 lakh from the StateBank of Mauritius, which paid 5.75 per cent interest, to the StateBank of Travancore, which paid 5.25 per cent interest, thus causing aloss to the RBF Nidhi and its depositors. Assailing the January 25High Court order, he said the court ignored the fact that funds in anationalised bank were more secure. He contended that the money wasinvested in a nationalised bank with proper authorisation from theBoard, and there was no personal gain for him.
Please note that the association of depositors of RBF are referring to Helios:
' Regulators are not taking tough measures against defaulters evenafter the collapse of CRB, DSJ, Prudential, Helios and hundreds ofother finance companies'.

Sunday, November 26,
MUMBAI/CHENNAI, NOV 25: An association of depositors of RoyapettahBenefit Fund (RBF) today demanded a CBI probe to find out how thedefaulting Chennai-based 'nidhi' company was given certificates ofsoundness by the Reserve Bank of India and Department of CompanyAffairs every year since 1995-96. RBF Nidhi Ltd Depositors' WelfareAssociation president R Seshadri told reporters here that RBF almostcollapsed in 1995-96 due to the improper sanctioning of crores ofrupees as loans without proper security, but the agencies which hadgone through all documents had certified the company to be sound.''The depositors, to whom the company owes over Rs 500 crore, havedoubts about the correctness of certificates given by RBI, Company LawBoard and Company Affairs Department,'' he said, adding only a CBIprobe would unravel the truth. The Association's efforts had resultedin RBF repaying 10 per cent of the deposits, but this amounted to Rs52 crore. They were aggrieved that the government had not takentangible steps to force five 'mega-borrowers' (who owe nearly Rs 400crore together) to repay their dues quickly, or bring to book thoseresponsible for improper sanction of loans. "Regulators are not takingtough measures against defaulters even after the collapse of CRB, DSJ,Prudential, Helios and hundreds of other finance companies,'' said aninvestor. The Association's general body will meet here on Nov 27 toconsider a proposal from the new Chairman to revive its operations.Its office-bearers had made it clear that they could agree to therevival only after a minimum of 30 per cent of the deposit money wasrepaid to depositors. Meanwhile, depositors of RBF Nidhi can hope toget some good news. P Sabanayagam, the new special officer of thecompany, is hopeful of paying the third installment to all thedepositors of the company by the end of this financial year. As perthe scheme approved by the Company Law Board, the depositors will bepaid five per cent of their deposits, subject to a minimum of Rs1000.Speaking to The Indian Express, he said the board has takenvarious measures to ensure speedy recovery.


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Money laundering and a serious FEMA violation by the promoters / Chairman/ Managing Director of Helios And Matheson

The alleged “Fraudulent Account “ Opened and loan granted for an amount of US$ 13.5 Million (Approximately Rs. 62 Crores) by State Bank of Mauritius – Mumbai/Mauritius is also without shareholders and local directors knowledge as confirmed above by the then our Company Secretary and Administrator M/S International Financial Services Mauritius. A legal action is contemplated against the State Bank of Mauritius and others. We are also contemplating for a request for inspection of documents held with the State Bank of Mauritius as the loan applied for was with the alleged forged resolution document reading inter alia as under:

It was resolved that:

(a) the company avails itself from State Bank of Mauritius Ltd. of Port Louis, a short term Loan of USD 13.5 m against:

(This is a serious FEMA violation as no Indian National can provide Personal Guarantee for any foreign currency loan )
  • Personal Guarantee of Mr. V. Ramachandiran (chairman) and Mr. GK Muralisrishna, MD of Helios and Matheson Information Technology Ltd.
  • Lien letter for pledge of proceeds by Helios and Matheson Information Technology Ltd.

The account was opened :

Without – Any – Account Opening Form Duly Signed by all directors and
authorized Signatories

Without – Any - Signature Card – Duly Signed by all Directors and Authorised
Signatories

Without – Any - Duly Signed and certified Memorandum and Articles of
Association

Without – Any – Board Approval

Without – Any - Board Resolution Duly Signed by all directors/Company
Secretary

Without– Any- Knowledge of the Company Secretary / Administrator of the
Company

Without – Any – Passport copies and Photographs – Duly signed and certified by /and of all the directors / authorized signatory

Without – Any – Knowledge about our company / Vmoksha’s Financials ie:-
Last three years Balance Sheets duly signed and certified by all
the Directors /Authorised Signatory.

Without – Any – Address Proof of the Company and its Directors and
Authorised Signatory.

Without – Any- Copy of Incorporation and commencement Certificate- Duly
signed and certified by all directories / Authorised Signatories.

Without - Any - Introduction from our existing banker of Vmoksha which is HSBC Mauritius

Without - Any - Initial / Minimum Deposit

Without - Any - Signature Verification of all the Authorised Signatories from Vmoksha's existing bankers HSBC Mauritius.

NO "KNOW YOUR CUSTOMER" as well as NO "DUE DILIGENCE" norms were followed.
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