We all know that in "Accelerated Methods", depreciation costs are written-off more quickly than the "Straight-line method". Generally, the purpose behind the former, is to "Minimize Taxable Income". It is the company's sword, how it uses is its discretion. So, where is the dichotomy?
Moreover a lower depreciation would have raised reported earnings and boosted book value.
I am also surprised to see Fitch Ratings suddenly revising the outlook on Rolta India Limited's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Negative from Stable, and affirming the IDRs and senior unsecured rating at 'BB-' changing its view on the company’s bonds based on that report.
Should a rating agency be so handicapped that it has to take cues from an external agency to change their original standing? This looks like "Hocus-pocus".
According to my research, the shares of Rolta India Ltd (Rs.121.65) came in for a sharp sell off on last Friday, i.e. on 24th April, 2015, because it has high FII holdings (12.94%). And you know how the NDA government spooked the FIIs with MAT.