My founded company has posted a sales of Rs. 1 crores this month. Don't believe? Well, you have to, coz there's no other choice dear ;)
Jokes apart, the truth is that I don't have a company, so there are no sales. But assume I have registered a private limited company, its not hard for me to post such extravagant figure as sales or even profits ! How? Read below...
Lets say you have a service-imparting firm JootaPolish Pvt. Ltd., which takes contract of polishing shoes. Making dull shoes look shiny black, isn't that an interesting business !! You have big dreams regarding your company and plan to list it and file an IPO within 2 years. But there's a little problem....you are not getting any deserved contract, of shining anybody's shoes. So, how will you show the prospective investors that your company is doing good business and posting ample profits? Here's a way...
Contact a friend. Maybe me, why not !! I'll be happy to help !! Give me Rs. 100 and ask me to give you a contract of shining my shoes for Rs. 100. Only me and you know that neither I gave you any of my shoes nor you polished them. Also, you got your 100 rupees back. But you can show in your 'Sales' in Profit Loss Statement that I availed a service from you for Rs. 100 and deducting your manual labour of Rs. 20 for the royal job of polishing shoes as 'expenses', your Profits are Rs. 80 !! Wow !!
Neither you did anything, nor I got anything, but as we are friends/relatives, we both kept our mouth shut and your profits rose by Rs. 80 and sales by Rs 100 !! Isn't that sexy??
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