Jay Shah - the Golden Touch Boy! Really?

My first reaction on seeing the report by 'The Wire' was that the Opposition, after groping in dark for 3.5 years, had finally laid its hands to something, may be, credible. Also, it was near certain that the entire opposition would jump in and try to cash in maxima from the fallout, as it sure looked like a chink in the armour of Modi-Shah combine. And that it would serve as the proverbial "Tinka" to the rudderless and sinking fortunes of many! Modi's one liner 'Naa Khaunga aur naa hi khaane doonga' did reverberate with the masses and any compromise in that position would have provided substantial ammo to the entire opposition and media.

'Jump in' , they surely did, but the issue is on a fizzle now! The article by 'The Wire' very soon is now looking like a shoddy job at investigative journalism lacking in basic knowledge about financial issues, and hinges upon dishonest narrative of selective facts! Someone with very basic lessons at Accounting and Finance would have known that any accounting figure, in isolation, could be selectively used to paint a desired picture, but it would seldom provide the correct story. And here, the writer botched up on the very basics, the Profit and Turnover figures.

2013 and 2014 - Loss of a few thousand rupees mentioned, but no turnover figures given.

2015 - Profit of approx Rs 18,000 against a turnover of Rs 50,000 mentioned.

2016 - Turnover of Rs 80.5 Crs mentioned, but profit/ loss figures conveniently ommitted.

As it actually turns out, in 2016, the Company makes a loss of 1.48 crores (So much for the magic touch under the political tutelage!) and winds up!

Also, the article misquotes the Revenue and Surplus figures or the net worth of the company (for which they apparently issued a clarification later) . The touch of Jay Amit Shah was so “golden” that the net worth of the company plummeted from about Rs 19 lakh as of 31st March 2015 to negative Rs 80 lakhs a year later. So understandably the company was in trouble financially and soon shut shop. The Wire, on the other hand, had reported a jump from 19 lakh to 80 lakh! The writer cannot be so naive to assume figures within brackets as positive!

Rahul Gandhi latched on the jump in turnover figures (selective use of figures, without correlating with other figures), without ample homework and stated that Jay Shah's company made profits over 1800 times (or whatever flimsy figure that was!)! Interestingly, Kejriwal would have done his homework this time and wasn't vocal this time, as opposed to the earlier intention of joining hands in bringing in a 'Bhukamp' in the Parliament!

The narrative then shifted to closing of the Company close to demonetisation! Again, the other parallel allegation of loans, amidst shifting goal posts, by the same people contradicts the Black money angle! Why would a Company shut shop before demonetisation, as it would have actually accorded a chance to convert Black to white?

With the argument getting unsustainable, the goal post was shifted yet again to bring in the 'loan angle', of a loan of Rs 25 crore from a cooperative bank against collateral valued at under Rs 7 crore. The facts on ground actually indicate that there was no “loan” of Rs 25 crores and that there was only a Letter of Credit (LC) of up to Rs 25 crore. The writer couldn't be so naive, yet again, not to understand the difference between a loan and an LC!

The facts on ground indicate that the 100 Cr defamation case would trouble 'The Wire'!