Step-Up Study Circle

Who is liable...
Who loss money....
Mallaya... No
Auditors... No
Public - U think...

Some of world's top auditing firms, including Price Waterhouse, Grant Thornton, Deloitte LLP and Walker Chandiok & Co, are under scrutiny with a slew of regulators seeking answers on their valuation, auditing and due diligence of UB Group companies over the last few years.

Deloitte LLP conducted the financial and tax due diligence for Diageo of United Spirits Ltd (USL) which led to the $2.1 billion acquisition of the company, but could not detect the problems in annual accounts. These accounts, in turn, were prepared by PW, which was the auditor for USL between 2010 and 2011, and later by Walker & Chandiok & Co.

The accounts were disputed by Diageo in April 2015 after it found a Rs 2,100 crore hole and sought Vijay Mallya's ouster from the USL board. Questions have also been raised by lenders on what basis Grant Thornton valued the Kingfisher brand at Rs 4,100 crore. This is now being probed by the Serious Fraud Investigation office (SFIO).

When contacted, a Grant Thornton spokesperson said the firm fully stood by its brand valuation report on Kingfisher. "We believe it was appropriate in the context of when it was done and the purpose for which it was done," the spokesperson said.

PW declined comment but an external spokesperson said the firm had not received any communication from either the Securities and Exchange Board of India or the Enforcement Directorate. "Deloitte does not comment on client confidential matters," its spokesperson said.

Diageo had invested in USL after the British company was given express representations that all of the receivables from Mallya entities were recoverable in full. The fund diversion worth Rs 2,100 crore from USL was later raised when KPMG, the new auditor appointed by Diageo, discovered discrepancies when it was finalising USL's 2014 accounts. All the three years' accounts will now have to be re-stated, according to listing norms.

In the same year, the new USL management called in PW UK for a forensic audit of the previous three years (which included auditing by its own India unit) and passed on the reports to the regulators including the Sebi, the ministry of corporate affairs and the Institute of Chartered Accountants of India.

The ICAI, sources said, had asked both PW and Walker Chandiok to explain the discrepancy. An ED official said it was surprising that none of the auditors or valuers for Diageo raised flags over the accounts manipulation or the Rs 4,000 crore diversion by USL to the British Virgin Islands in 2007.

While the auditors of USL are in the dock for cooking accounts, another marquee auditing firm -- Grant Thornton is under investigation by the SFIO for its Rs 4,100 crore brand valuation of Kingfisher Airlines. It was based on this brand valuation in 2011 that Mallya raised Rs 9,100 crore from government-owned banks by offering the brand as collateral. The lenders are now holding a dud Kingfisher brand, which is finding no takers.

Sources in the ICAI said it was a redux of the Satyam scam, when some of the world's top auditors overvalued assets before the Maytas and Satyam merger, which led to the unravelling of the scam. In the Satyam case, the ICAI had debarred two auditors from Price Waterhouse who were found guilty of professional misconduct. S Gopalakrishnan and T Srinivas were struck off the ICAI's rolls and fined Rs 5 lakh each. A Central Bureau of Investigation court later convicted them of fraud.

Good morning...

N here is d day for which u were waiting.

You can enjoy sweetness of success only when you have tested failure.
You can defeat failure when you can defeat your inner fear.

Do or die again.
All d best.

STEP-UP STUDY CIRCLE
ROSHNI PATHAK
MANMAY PATHAK
UDIT PATADIYA.

Announcement of cs results.
Date. 25.02.16

Professional at 11 a.m.
Executive at 2 p.m.

all d best...

STEP-UP STUDY CIRCLE.

Runout of your Comfort Zone

http://www.caclubindia.com/articles/runout-of-your-comfort-zone-26045.asp?utm_source=newsletter&utm_content=article&utm_medium=email&utm_campaign=nl_hg3_5_2016

Fast track exit mode for defunct companies

http://www.caclubindia.com/articles/fast-track-exit-for-companies-26073.asp?utm_source=newsletter&utm_content=article&utm_medium=email&utm_campaign=nl_hg3_5_2016

STEP-UP STUDY CIRCLE WISHES ALL THE VERY BEST TO ALL CA FINAL AND CPT STUDENTS.

Roshni pathak
Manmay pathak
Udit patadia

Failure is temporary, when success is SURE

"BEST OF LUCK" all C.S. students

Step-up Study Circle.
Excl. For C.S. & C.A.
Vadodara.
#88 66 33 69 69
88 66 55 69 69

Wonderful theory.

Plz spend a minute to read. Its all about life.

A beautiful speech by Sundar Pichai - an IIT-MIT Alumnus and Global Head Google Chrome:

The cockroach theory for self development👍

At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady.

She started screaming out of fear.

With a panic stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach.

Her reaction was contagious, as everyone in her group also got panicky.

The lady finally managed to push the cockroach away but ...it landed on another lady in the group.

Now, it was the turn of the other lady in the group to continue the drama.

The waiter rushed forward to their rescue.

In the relay of throwing, the cockroach next fell upon the waiter.

The waiter stood firm, composed himself and observed the behavior of the cockroach on his shirt.

When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.

Sipping my coffee and watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behavior?

If so, then why was the waiter not disturbed?

He handled it near to perfection, without any chaos.

It is not the cockroach, but the inability of those people to handle the disturbance caused by the cockroach, that disturbed the ladies.

I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it's my inability to handle the disturbances caused by their shouting that disturbs me.

It's not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.

More than the problem, it's my reaction to the problem that creates chaos in my life.

Lessons learnt from the story:

I understood, I should not react in life.
I should always respond.

The women reacted, whereas the waiter responded.

Reactions are always instinctive whereas responses are always well thought of.

A beautiful way to understand............LIFE.

Person who is HAPPY is not because Everything is RIGHT in his Life..

He is HAPPY because his Attitude towards Everything in his Life is Right..!!,,,,,,,

🌟🌟 Really beautiful 🌟🌟

Speech by Thomas Friedman in the New York Times.....

"When we were young kids growing up in America, we were told to eat our vegetables at dinner and not leave them. Mothers said, think of the starving children in India and finish the dinner.'

And now I tell my children : 'Finish your homework. Think of the children in India, who would make you starve, if you don't.'?"

---How times change !😊

4 IPOs by companies in a single month...

http://www.livemint.com/Companies/3whDVMUgLJlFx3rJnUk5AM/Four-IPOs-likely-to-raise-over-Rs1700-crore-this-month.html