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Assignment On TESCO. Prepared By: Musammat Majeda Aktar Suma

Tesco plc is the third-largest retailer in the world by revenue and operates in several countries in Asia and Europe. In 2014, Tesco admitted to overstating its first-half profits by £250 million and the UK supermarket watchdog found Tesco deliberately withheld money owed to suppliers. This led to investor lawsuits and a £2 billion loss in share value as Tesco shares slumped 11.5% after the scandal. Tesco was fined £129 million for this accounting fraud and trading profit fell from £3.3 billion the prior year to £1.4 billion.

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37 views1 page

Assignment On TESCO. Prepared By: Musammat Majeda Aktar Suma

Tesco plc is the third-largest retailer in the world by revenue and operates in several countries in Asia and Europe. In 2014, Tesco admitted to overstating its first-half profits by £250 million and the UK supermarket watchdog found Tesco deliberately withheld money owed to suppliers. This led to investor lawsuits and a £2 billion loss in share value as Tesco shares slumped 11.5% after the scandal. Tesco was fined £129 million for this accounting fraud and trading profit fell from £3.3 billion the prior year to £1.4 billion.

Uploaded by

S M SHUKRANA
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment on TESCO.

Prepared by: Musammat Majeda Aktar Suma

Tesco plc , trading as Tesco, is a British multinational groceries and general merchandise
retailer. It is the third-largest retailer in the world measured by gross revenues and the ninth-
largest in the world measured by revenues. It has shops in seven countries across Asia and
Europe, and is the market leader of groceries in the UK (where it has a market share of around
28.4%), Ireland, Hungary and Thailand. Tesco Bank is a British retail bank which was formed in
July 1997, and which has been wholly owned by Tesco plc since 2008. The bank was formed as
part of a 50:50 joint venture between The Royal Bank of Scotland and Tesco.
In September 2014, Tesco released a statement to the stock exchange in which it admitted that it
had identified a £250m overstatement of first-half profits for that year. The UK’s supermarket
watchdog later found that Tesco deliberately and repeatedly withheld money owed to
suppliers to boost its sales performance artificially, in a serious breach of supermarket
regulations. Scores of investors sued the company as a result, alleging they lost millions because
they bought shares on the basis of misleading accounts.

Following the incident, Tesco suspended four executives. That time Warren Buffett said “Buying
shares in Tesco was a huge mistake” and sells off more of his shareholding. Tesco shares lost
£2bn of their value in the months as its shares slumped 11.5% after the scandal broke. Tesco
was fined £129m for this scandal. Trading profit for that year was £1.4bn. A year ago it was
£3.3bn.

Reference:

 https://www.theguardian.com/business/2014/dec/09/tesco-timeline-the-retail-giants-rise-
and-fall
 https://www.bbc.com/news/business-39415681
 https://www.google.com/amp/s/www.independent.co.uk/news/business/
news/tesco-fined-ps129-million-serious-fraud-office-overstating-profits-
a7653166.html%3famp

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