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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Migratory birds fly above a man rowing a boat on the Yamuna river in the old quarters of Delhi.

India has the second highest number of fraud-hit companies, according to a report by global advisory firm Kroll.

Theft of physical assets or stock was the most frequent (27%) type of fraud reported.

The report is based on interviews of 800 senior executives worldwide, including 60 from the country.

The percentage of domestic businesses affected by fraud has fallen from last year's 84%, she said, adding, "but our experience suggests that while concern for fraud may be falling, fraud is not".

Domestic companies lose on an average 1.2% revenue due to frauds, significantly higher than global average of 0.9%, the report said, suggesting that companies continue to develop strong and well-organised internal controls.

Moreover, 22% of local firms weakened their internal controls frequently as a result of budget constraints, one of the highest figures of any country.

According to the report, 50% of respondents here consider themselves vulnerable to corruption and bribery-related frauds, more than any other type of fraud.

India (Rank 2)
Fraud hit companies (2011-2012): 68%
Fraud hit companies (2010-2011): 84%

Take a look at the worst affected nations in terms of fraud-hit companies...

Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

South African Dancers and Musicians; performance at a presentation of the nine host-cities of the 2010 FIFA World Cup in South Africa.

Africa (Rank 1)

Fraud hit companies (2011-2012): 77%
Fraud hit companies (2010-2011):85%
Theft of physical assets or stock: 32%
Information theft, loss, attack: 34%
Corruption and bribery: 20%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Flight attendants from China Southern Airlines stand inside a booth on the first day of the China International Aviation & Aerospace Exhibition in the southern Chinese city of Zhuhai.

China (Rank 3)

Fraud hit companies (2011-2012): 65%
Fraud hit companies (2010-2011): 84%
Theft of physical assets or stock: 27%
Information theft, loss, attack: 21%
Corruption and bribery: 19%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

A worker walks at a salt field at Palibelo village, on the outskirts of Bima, on Indonesia's Sumbawa island.

Indonesia (Rank 4)

Fraud hit companies (2011-2012): 65%
Theft of physical assets or stock: 16%
Information theft, loss, attack: 35%
Internal fraud or theft: 19%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Commuters cross the Millenium Bridge during a rainy morning, towards the financial district the City of London.

Europe (Rank 5)

Fraud hit companies (2011-2012: 63%
Fraud hit companies (2010-2011): 71
Information theft, loss, attack: 18%
Theft of physical assets: 23%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Vehicles drive during a heavy snowfall in Moscow.

Russia (Rank 6)

Fraud hit companies (2011-2012): 61%
Theft of physical assets or stock: 26%
Information theft, loss, attack: 26%
Corruption and bribery: 16%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

The tree is seen during the 80th Annual Rockefeller Center Christmas Tree Lighting Ceremony in New York.

United States (Rank 7)

Fraud hit companies (2011-2012: 60%
Fraud hit companies (2010-2011): 65%
Information theft, loss, attack: 26%
Theft of physical assets: 24%
Management conflict of interest: 16%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Mexican matador Michelito Lagravere performs a pass to a bull during a bullfight at the Plaza Monumental bullring in Merida.

Mexico (Rank 8)

Fraud hit companies (2011-2012: 59%
Fraud hit companies (2010-2011): 69%
Information theft, loss, attack: 26%
Theft of physical assets: 19%
Corruption and bribery: 15%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

An indigenous man protests before the visit of FIFA Secretary General Jerome Valcke at Maracana Stadium in Rio de Janeiro.

Brazil (Rank 9)

Fraud hit companies (2011-2012: 54%
Fraud hit companies (2010-2011): 73%
Information theft, loss, attack: 14%
Theft of physical assets: 17%
Management conflict of interest: 23%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

Columbia (Rank 10)

Fraud hit companies (2011-2012: 49%
Theft of physical assets, stock: 19%
Vendor, supplier, procurement fraud: 19%
Regulatory or compliance breach: 30%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

The Burj Khalifa (C) is seen, framed by towers and buildings under construction on Sheikh Zayed road in Dubai.

Gulf states (Rank 11)

Fraud hit companies (2011-2012): 49%
Theft of physical assets or stock: 18%
Management conflict of interest: 15%

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Corruption, bribery, frauds: Indian firms worst hit

Last updated on: November 30, 2012 08:58 IST

A hotel employee at Baker Creek Lodge in Banff National Park sprays water down as he makes a ice skating rink near Lake Louise, Alberta.

Canada (Rank 12)

Fraud hit companies (2011-2012): 47%
Fraud hit companies (2010-2011): 70%
Theft of physical assets (24%)
Management conflict of interest: 14%