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, so how it uses this weapon, 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.