Cover Story

Inside the secret world of auditing
Business Today takes a peek into the inscrutable Indian operations of the global Big Four. Do they deserve the flak they’ve come in for in the wake of the Satyam fraud? Yes and no. Suman Layak & Puja Mehra go into the details. The big 4Big cheese Vs small frySome don’t like it bigThe problem withinThe bloodhounds of bookkeeping

Big cheese vs small fry
Indian audit firms look at the Big Four the way many feel about advertising: Hate it, but you can’t ignore it.
The big 4
Their collective size is equivalent to that of a mid-level Indian corporation. Yet, the big four auditing firms— EY, PwC, KPMG, Deloitte Tuche Thmatsu— have a crucial role in policing the bookkeepers of India Inc. Big cheese Vs small frySome don’t like it bigThe problem withinThe bloodhounds of bookkeepingInside the secret world of auditing
The problem within
When the bulk of the auditing work involves junior auditors, trouble can’t be too far behind.
The bloodhounds of bookkeeping
If auditors are happy being watchdogs, then forensic accountants are the ones who go out and sniff out fraud. Rachna M. Koppikar goes into the details. Inside the secret world of auditingThe big 4Big cheese Vs small frySome don’t like it bigThe problem within
Some don't like it big
Close to half of the cream of India Inc. prefers to have lesser-known auditors.

2009-02-22

Digital

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Editors note

From the editor

When a large-scale robbery takes place, the first reaction of the public is not of cursing the robber, but that of blaming the police. How did the police not have a whiff of the theft?

Event

Mumbai's high-fliers tee off

88 corporate bigwigs faced off at our annual golf event. Winners will play the championship finals to be held in Delhi.

Book

Growing pains

Dough Tatum’s book No Man’s Land charts a credible course for mid-size companies who are struggling to become big.

Special

20 stocks to watch out for in 2009

BT speaks to 11 of the brightest minds on Dalal Street and gets them to identify their favourite long-term value picks in 2009. These stocks are only for long-term investors.

The dark horses

In every game there are dark horses and the stock market is no exception. In the 2004-07 bull run, it was the mid-cap and small-cap stocks which outperformed the broad market.

Features

Operation Satyam

When the government deputed a team of ace management professionals to take over charge at Satyam Computer after Founder B. Ramalinga Raju revealed his fraud, little did they know what awaited them.

Courting Satyam

Despite its troubles, several leading corporate houses are keen to snap up Satyam.

Breaking bread with the bears

A clutch of brokerages—foreign and Indian—has braved a volatile market and flagged off operations. With an upturn nowhere in sight in the short- to medium-term, can these new kids on the block surive?

Oil's off the boil

The sharp drop in crude prices comes as a boon to some sectors, and a curse to others. The big question, though, is: How long will this softness last?

Nowhere to go

After five years of high growth, exports are in a slump leading to massive income and job losses. The situation will get worse before it gets better.

Infosys bold global ambition

Infosys wants to be among the top three information technology services firms in the world. Its business strategy suggests this will not happen soon.

Trends

Instan tip

The fortnight’s burning question.Are the third-quarter results a source of concern for India Inc.?

'Solar power can be big in India'?

John Lyon, executive Director, Geographic Development, Dow Corning, spoke to BT’s Suman Layak on India becoming a manufacturing hub for solar power equipment that use silicon and also about silicones that go into almost anything we use today.

Numbers of note

6.5 quindecillion novemdecillion per cent (65 followed by 107 zeros): Annual rate of inflation in Zimbabwe. According to Forbes Asia, prices double every 24.7 hours.The country has also issued the world’s first 100-trillion dollar note

Cheap Does It

As real estate sales slowdown and prices plummet, developers chant the affordable housing mantra.

'We will help Indian firms expand'?

The head of equity markets at the London Stock Exchange (LSE), Martin Graham, was in India to explore business possibilities in the UK by inviting Indian companies to raise capital through LSE.

GEC space hots up

The hindi general entertainment channel scene is hotting up with the launch of the 13th channel in the space.

Hey teacher!

A study of 165 Indian universities shows a sharp growth in student numbers and identifies faculty shortage as the biggest headache.

In reverse gear

Car sales have skidded to a halt with overall numbers showing negative growth for the first time in many years.

To be precise

“This may be the first Davos where capitalism is widely viewed as a failure, rather than something to be admired”Ethan Kapstein, professor of economics and political science, INSEAD, in The Wall Street Journal

Just wondering...

What happened to the key recommendations of the National Knowledge Commission?

'Security concerns have changed radically'?

President and CEO of the $12-billion Securitas AB group, Alf Göransson, was in India recently to meet the company’s core management team. In a chat with Manu Kaushik, he talks about domestic security issues and growth areas for the industry.

The dangers of deflation

Falling inflation is good, but not when it comes with falling investment, income and jobs.

Black October

Top Mind

Wikipedia censured?

What is the noise all about? Wikipedia founder Jimmy Wales wants to control user edits on the hitherto open online encyclopaedia.

Policy Watch

Ensuring independence

The failure of Satyam’s independent directors has exposed the ineffectiveness of the policy.

Treadmill

Is your workout past Its expiry date?

In a hospital, using outdated information is considered malpractice; in a gym, it’s standard operating procedure. Don’t believe it?

In This Issue

Do more to get more

In 2009, pay packets at middle manager level will remain unchanged— barring for those who perform exceptionally well.

Faithful Inc.

Many corporate leaders say faith in God and their spiritual beliefs have helped them cope with hard times. Can it also help a business grow, make CEOs more focussed on their jobs and help a company in times of economic slowdown? Shalini S. Dagar finds out.

Reporters Diary

Banking on the White 'Tiger'

Shrimp and prawn farming, once big business in Tamil Nadu and Andhra Pradesh, is on the verge of collapse. But the White Prawn may herald a new boom.

Printed Circuit

The original netbook

Gets Fancy The New Asus Eee S101 is a good machine but it’s also expensive.

People

Peggy's India run

Margaret L. “Peggy” Johnson, 46, runs a couple of miles every day. The Executive Vice President for Qualcomm’s business for the Americas and India has run numerous full and half marathons in England and Ireland.  

Leadership Spotlight

A hands-on boss

January was an eventful month for A.M. Naik, chairman and managing director, L&T. The spotlight was firmly on the 66-year-old for a host of reasons— first due to L&T’s obvious interest in acquiring Satyam, then came the Padma Bhushan recognition and finally the company’s stellar performance in third quarter against odds. Managing in chaosSmith, the CEO10 awards that will never be givenMeet the iron man

Current

That sinking feeling

The third quarter results confirmed the worst fears that the slowdown has hit companies hard. And the next quarter is likely to be worse.

Windows 7, worth It?

Business Today tries out an advance beta version of what will probably be the biggest software launch of the year—Windows 7—and gives its verdict.

Disclosing to conceal

The market regulator’s directive on mandatory disclosure of pledged shares neither truly brings the promoters in line nor helps investors.

We have no intention to delay or cancel orders

Sheikh Ahmed Bin Saeed AlMaktoum, the US-educated 50-year-old Chairman of the Emirates Group, which operates the Dubai-based international carrier Emirates, believes that the airline is “one of the vehicles on whose virtue Dubai has reached where it has today”.

Capital crisis

A huge funding gap threatens to stall India’s biggest airport project. What are the funding options before DIAL that has a March 2010 deadline to meet?

Jobs

Middle management salary survey '08

To capture compensation trends in corporate India, Business Today collaborated with the Delhi-based research consultancy, Omam Consultants, to collect data on salaries across a range of industries and companies.

Money

'Around 80 million people will join new pension scheme in five years'?

The Chairman of PFRDA, Dhirendra Swarup, talks about the new pension scheme that will offer safe and balanced growth.

Deal Watch

The biggest deals in January

Deal of the monthIn another deal in the telecom infrastructure, Tata Teleservices merged its telecom tower arm, Wireless Tata Telecom Infrastructure, with SREI Group company, Quippo Telecom Infrastructure.

Noted

Hiked

Hiked: By India’s leading car maker Maruti Suzuki, the prices of popular A-Star, Swift, DZire and SX4 models, due to increased input costs and the appreciation of the Japanese yen vis-à-vis the Indian rupee. The price hikes range between Rs 6,000 and Rs 10,000. However, the company has left the prices of M800, Omni, Alto, WagonR, Zen Estilo, Gypsy, Versa and Grand Vitara untouched.

Letters

Raju's costly ride

The Satyam scandal may have taken everyone by surprise, though it wasn’t entirely unforeseen (BT cover, February 8).

Cover Story

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