Vedanta Share Crash: These are the 5 reasons due to which there was a sudden huge fall in Vedanta shares:

News Topical, Digital Desk : Vedanta Share Crash: Viceroy Research has made a big attack on Vedanta. According to them, Vedanta's parent company VRL is on the verge of bankruptcy and is keeping itself alive by forcibly drawing money from VEDL. In the report, it has been called "Parasite & Host". Vedanta's stocks are seeing a decline of more than 4 percent, while Hind Copper's shares are also trading at a decline of more than 3.65 percent. Hindalco's shares have fallen by more than 2.65 percent.

These are the 5 reasons for the huge fall in the stock

(1) Vedanta Resources Limited (VRL) does not do any business on its own. Its entire business model is based on drawing money from Vedanta Ltd (VEDL). It needs loan or dividend from VEDL to pay its liabilities.

(2) Cash plunder – in the name of dividend – report claims – VEDL has given ₹5.6 billion dollars more dividend than its earnings in the last 3 years. VEDL gave this money by taking loan, due to which its balance sheet got spoiled. This trend is still going on.

(3) Fraud in CAPEX and brand fees – Viceroy claims that profits have been increased by wrongly showing expenses as CAPEX in many units of VEDL like ESL Steel, TSPL and Fujairah Gold. On top of this, VRL takes “Brand Fees” of ₹338 million dollars every year, which have no business justification.

(4) Accounting irregularities - Interest mismatch and hidden loans- Vedanta had to pay more interest on the loans shown than it should have. This means that either there are hidden loans or the terms of the loan have been hidden. Viceroy has put this in the category of fraud.