[Archived] Venkys wield the axe again

[philipl]

Although I don't know for sure I would say that KPMG are probably the accountants for the rest of the Venky's businesses so it would be a logical step (the first one?) to appoint them for Rovers as well. Seems reasonable to me.

Venky's India are audited by SUDIT K PAREKH & CO who appear to be a relatively small local firm.

KPMG in India appear not to be licensed as external auditors but are big in providing consultancy services so might be engaged by VH for those purposes.

Phil, is this the good news you were talking about?

Yes

[booth]

And there was me thinking Mourinho was being brought in as manager

[BangkokRover]

http://en.wikipedia.org/wiki/KPMG

Criticisms

[edit]Rite Aid

In 2003, KPMG agreed to pay $125 million to settle a lawsuit stemming from the firm's audits of the drug chain Rite Aid.[25]

[edit]Lernout & Hauspie

In 2004, KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company Lernout & Hauspie Speech Products NV.[26]

[edit]Tax shelter fraud

Main article: KPMG tax shelter fraud

In early 2005, the United States member firm, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes and agreed to pay $456 million in penalties in exchange for a deferred prosecution agreement. KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On January 3, 2007, the criminal conspiracy charges against KPMG were dropped.[27]

Before the settlement, the firm, on the advice of its counsel Skadden, Arps, Slate, Meagher & Flom LLP, removed several tax partners and admitted "unlawful conduct" by those partners. The firm agreed to cooperate with the U.S. Department of Justice's investigation and help prosecute former partners who had devised and sold the tax shelters. Additionally, the firm hired former U.S. district judge Sven Erik Holmes to monitor its legal and regulatory affairs.

[edit]Siemens

In February 2007, KPMG Germany was investigated for ignoring questionable payments in the Siemens bribery case.[28] In November 2008, the Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.[29]

[edit]Others

In 2006, Fannie Mae sued KPMG for malpractice for approving years of erroneous financial statements.[30]

In March 2008 KPMG was accused of enabling “improper and imprudent practices” at New Century Financial, a failed mortgage company[31] and KPMG agreed to pay $80 million to settle suits from Xerox shareholders over manipulated earnings reports.[32]

In August 2010 it was reported by the Swedish Financial Supervisory Authority to the Swedish accountancy regulator after HQ Bank was forced into involuntary liquidation after the Financial Supervisory Authority revoked all its licences for breach of banking regulations.[33]

[philipl]

You will find a similar litany litigation against each member of the Big 4.

[67splitscreen]

Marple leaf broke this more than a week before this story appeared in the LT.

On balance this is very good news although I feel very sorry for the local firm that has lost such a long standing client and the costs will have gone up.

KPMG as part of their audit risk assessment will be reading through the recent press and for sure they will see reference to the Premier League's unease over the conduct of Jerome Anderson and Venky's. They will most certainly have required written assurances as part of their client engagement letter that the club is fully compliant with all football regulations on third party influence, conflicts of interest and employment of agents. If I were KPMG I would also have included a clause on compliance with the betting regulations.

Also as part of the audit risk assessment KPMG must have looked at the League table and required some very real action by Venky's with regards to Rovers not facing administration were we to be relegated. Birmingham City's accounts were qualified because they had no financial plan in the event of relegation so Rovers MUST BE NOW FINANCIALLY SECURE IN THE EVENT OF RELEGATION for KPMG to have accepted the appointment.

The final piece of very good news is that KPMG will be very conscious that Rovers are a £60m turnover company of regional importance and global significance. They would therefore have vetted all the existing directors and the Chairman search to make sure they were comfortable with the client they are taking on. This means the risk that Paul Agnew will be appointed Chairman must be lessened or he has attributes which are far from visible.

I'm in no way criticising your summation but is all this not the same as Rothschild ETC would have done with the bidders and current owners, some would argue we didn't come out of the procedure smelling of roses with hindsight.

[booth]

Yes

I've just realized your good news came with some bad news. Is it that bad?

[Blue n White Rover]

The question no-one has answered is why?

Why? Well, for a start, KPMG are one of the world's top 4 accountants, ranked alongside PwC, Delloitte and Ernst & Young. KPMG have a wealth of knowledge to make Rovers more tax efficient. This will lead to us and Venky's saving money in key areas. It will lead to us paying less tax and with the business advisory that KPMG provide, I can assure you that Rovers and Venkys are in safe hands.

No disrespect to our former Accountants, but this is a great move by Venkys. Working as an Accountant myself, it is very encouraging and something Venkys should be applauded for.

[Mattyblue]

Well that's one of the 'nine out of 10 decisions' Mrs Desai will get right, roll on the other 8.

[JC4LAB]

Dont know about now but PM&M were once true class with bosses that were great to work for and they knew their stuff..Its no secret they looked after Uncle Jack too.

[Blue n White Rover]

Dont know about now but PM&M were once true class with bosses that were great to work for and they knew their stuff..Its no secret they looked after Uncle Jack too.

PM&M are medium-sized accountants. KPMG deal with the largest companies in the world and are renowned for there tax efficiency services. If it is still on the internet, watch the program on ITV about companies saving money on corporation tax by bringing forward losses. KPMG masterminded Vodafone's takeover of this German company (Can't recall the company), in turn they saved them a hell of a lot of money. If they could do the same for Rovers, it will enable us to spend money elsewhere.

[BangkokRover]

Well that's one of the 'nine out of 10 decisions' Mrs Desai will get right, roll on the other 8.

Now that is funny

[doctorryan]

attributes which are far from visible.

Brilliant Philip, I've got to remember that one.

[imy9]

Venky's India are audited by SUDIT K PAREKH & CO who appear to be a relatively small local firm.

KPMG in India appear not to be licensed as external auditors but are big in providing consultancy services so might be engaged by VH for those purposes.

Yes

You say here that the news that we have got top accountants involved with Rovers and this was the good news you were referring to, so having looked back at the Anderson you said that the good news you were referring to was Venkys supporting us regardless of relegation, do you want to make a decision which one you mean or were you sitting on a fence like the rest of us waiting to see what happened next

[chaddyrovers]

Marple leaf broke this more than a week before this story appeared in the LT.

On balance this is very good news although I feel very sorry for the local firm that has lost such a long standing client and the costs will have gone up.

KPMG as part of their audit risk assessment will be reading through the recent press and for sure they will see reference to the Premier League's unease over the conduct of Jerome Anderson and Venky's. They will most certainly have required written assurances as part of their client engagement letter that the club is fully compliant with all football regulations on third party influence, conflicts of interest and employment of agents. If I were KPMG I would also have included a clause on compliance with the betting regulations.

Also as part of the audit risk assessment KPMG must have looked at the League table and required some very real action by Venky's with regards to Rovers not facing administration were we to be relegated. Birmingham City's accounts were qualified because they had no financial plan in the event of relegation so Rovers MUST BE NOW FINANCIALLY SECURE IN THE EVENT OF RELEGATION for KPMG to have accepted the appointment.

The final piece of very good news is that KPMG will be very conscious that Rovers are a £60m turnover company of regional importance and global significance. They would therefore have vetted all the existing directors and the Chairman search to make sure they were comfortable with the client they are taking on. This means the risk that Paul Agnew will be appointed Chairman must be lessened or he has attributes which are far from visible.

I'm very happy that hopefully the KPMG have get assurances from the owners and simply can't do a runner and put the club into administration.

hopefully we will see a chairman appoint with alot of experience and knowledge of football. and someone who has work as a chairman of a football club before

[sentient]

Accountants? KPMG? Big 4 firms dealing with the biggest companies in the world?

Remind me what happened with Enron and their so-called "big5" accountancy firm? Accountants shuffle and hide money - thi says nothing about the owners aspirations or motivations. Any conclusions to that effect are just spin and unbridled optimism.

[47er]

Phil, is this the good news you were talking about?

Not fantastic enough is it?

[philipl]

You say here that the news that we have got top accountants involved with Rovers and this was the good news you were referring to, so having looked back at the Anderson you said that the good news you were referring to was Venkys supporting us regardless of relegation, do you want to make a decision which one you mean or were you sitting on a fence like the rest of us waiting to see what happened next

To be honest this post epitomises how stupid your posting has become.

There have been posts from a number of people including myself that the Venky's have made Rovers financially secure in the event of relegation. I do have details and what they have done is very generous indeed but it is for them to announce the exact details when they see fit. Suffice to say the cash is I believe in the Rovers' bank balance.

The change in auditors shrinks into total insignificance compared with the club not facing imminent administration on 22 May or whatever date survival in the Prem is no longer mathematically possible. The change in auditor might though be related to the timing of the transfer of the moneys considering the Birmingham City accounts qualification and, dare I say it, a certain amount of doubt about the credibility of Venky's which their conduct has brought upon themselves.

Apart from nicko re-appearing, there is no evidence to suggest that there has not been a parting of the ways with Jerome Anderson.

[Mattyblue]

To be honest this post epitomises how stupid your posting has become.

There have been posts from a number of people including myself that the Venky's have made Rovers financially secure in the event of relegation. I do have details and what they have done is very generous indeed but it is for them to announce the exact details when they see fit. Suffice to say the cash is I believe in the Rovers' bank balance.

The change in auditors shrinks into total insignificance compared with the club not facing imminent administration on 22 May or whatever date survival in the Prem is no longer mathematically possible. The change in auditor might though be related to the timing of the transfer of the moneys considering the Birmingham City accounts qualification and, dare I say it, a certain amount of doubt about the credibility of Venky's which their conduct has brought upon themselves.

Apart from nicko re-appearing, there is no evidence to suggest that there has not been a parting of the ways with Jerome Anderson.

Whoa, how I have I missed this?

Venky's are ensuring that we will be secure upon relegation?

[roversmum]

Not fantastic enough is it?

It's great news. Funnily enough though, way back I did say that I felt we had nothing to worry about and Venky's would see us right if the worst happened*. Let's hope it doesn't come to that though, 47er, and hope that we can scrape through and stay in the Prem.

*That was before all the shenanigans though!

[Paul]

Whoa, how I have I missed this?

Venky's are ensuring that we will be secure upon relegation?

You haven't missed any direct statement. Philip, and I think a couple of others, have indicated Venky's have provided the funds, or demonstrated the funds are available, if we get relegated. I don't doubt what Philip has to say on this but I no longer believe a single utterance from the company Venky's, the Rao family or any of their representatives.

If my football team gets relegated I shall be sat in the JW next season watching and waiting to see what happens. If we go down when we start putting together a bloody good fight to get back up I'll start to have a little faith. For me our owners have done so much damage in such a short time they have a mountain to climb in terms of convincing me they have money, good intentions and can deliver. So far they have been shyte.

[CAPT KAYOS]

You haven't missed any direct statement. Philip, and I think a couple of others, have indicated Venky's have provided the funds, or demonstrated the funds are available, if we get relegated. I don't doubt what Philip has to say on this but I no longer believe a single utterance from the company Venky's, the Rao family or any of their representatives.

If my football team gets relegated I shall be sat in the JW next season watching and waiting to see what happens. If we go down when we start putting together a bloody good fight to get back up I'll start to have a little faith. For me our owners have done so much damage in such a short time they have a mountain to climb in terms of convincing me they have money, good intentions and can deliver. So far they have been shyte.

With you on this Paul - although I'm probably not as vehement as others yet against Venkeys I think that is probably just a sweetner to try calm things should the inevitable happen (maybe also an indication that they are worried? )

I have no doubt Venkeys mean well for the Rovers but the way they have gone about it is as you say.

As I have posted on the other thread "Rovers Hit the Headlines" , which from memory I think you also had similar concerns,was regard to whether we did actually need it (a takeover) - as although investment was required did we need/want it to basically 'keep up with Jonesy's'and the stupid 'Money go Round' of the Premier League.

[67splitscreen]

Venky's India are audited by SUDIT K PAREKH & CO who appear to be a relatively small local firm.

KPMG in India appear not to be licensed as external auditors but are big in providing consultancy services so might be engaged by VH for those purposes.

Just had a look around KPMG's global site, they are licensed auditors in all the other countries that Venky's have expanded into with production, (Vietnam, Bangladesh and Switzerland) maybe the reasons lie there, one company dealing with their international businesses has to be easier than independent auditors in every country.

Also the fact that one of KPMG's offices is in Pune must have some reasoning behind their decision, especially if they are working closely with Venky's local auditors on the businesses outside of Venky's India, for a company expanding globally it would make sense.

[PAFELL]

You haven't missed any direct statement. Philip, and I think a couple of others, have indicated Venky's have provided the funds, or demonstrated the funds are available, if we get relegated. I don't doubt what Philip has to say on this but I no longer believe a single utterance from the company Venky's, the Rao family or any of their representatives.

If my football team gets relegated I shall be sat in the JW next season watching and waiting to see what happens. If we go down when we start putting together a bloody good fight to get back up I'll start to have a little faith. For me our owners have done so much damage in such a short time they have a mountain to climb in terms of convincing me they have money, good intentions and can deliver. So far they have been shyte.

If rovers do go down and venkys loose interest. We can only hope that somebody else comes along to buy the club - which would have lowered in value. Stay up and the venkys stay, go down and who knows what happens - I do not even think they do.

[John]

You haven't missed any direct statement. Philip, and I think a couple of others, have indicated Venky's have provided the funds, or demonstrated the funds are available, if we get relegated. I don't doubt what Philip has to say on this but I no longer believe a single utterance from the company Venky's, the Rao family or any of their representatives.

That's the thing, based on their track record you can't really trust them.

In my view, they were probably advised to come out this week with comments along the lines of saying they are committed to the club. I do wonder if they fully understand the financial implications of relegation.

Worrying as time goes on what is to stop them from continuing to make bad decisions. Also, if they are going to change their working model (the infleunce of SEM/Kentaro) that would require a fairly major sea change based on some of the major decisions which have happened previously.

[imy9]

To be honest this post epitomises how stupid your posting has become.

There have been posts from a number of people including myself that the Venky's have made Rovers financially secure in the event of relegation. I do have details and what they have done is very generous indeed but it is for them to announce the exact details when they see fit. Suffice to say the cash is I believe in the Rovers' bank balance.

The change in auditors shrinks into total insignificance compared with the club not facing imminent administration on 22 May or whatever date survival in the Prem is no longer mathematically possible. The change in auditor might though be related to the timing of the transfer of the moneys considering the Birmingham City accounts qualification and, dare I say it, a certain amount of doubt about the credibility of Venky's which their conduct has brought upon themselves.

Apart from nicko re-appearing, there is no evidence to suggest that there has not been a parting of the ways with Jerome Anderson.

With all due respect Phillip what a ridiculous over reaction to a valid question.

This is an ongoing problem with this MB, have a differing opinion or challenge a point and you get called names, its like a playground.

Anyway,

1. Did you say that there was surprisingly good news tinged with some bad news?

2. Did you not then quote what you said in a thread when referring to Venkys supporting the club?

3. Then on another thread you said the good news was that we were getting new accountants!!

Make your mind up, which is one or both? To be fair a lot of what you have posted is getting dangerously close to X files level paranoia now, should people not question inaccuracies or is that only reserved for Venkys?

Nicko has been spot on with ALL his info so far, he has said from the beginning that Venkys are not dumping us regardless of division, what was your view at THAT time? Its changed again with the weather, a fellow poster has then posted the news on here BEFORE you and then we get the above. You yourself have said that Nicko has been spot on with his information so why would it be wrong now? Lots of questions I know but I am sure you want to enlighten the 'stupid' poster.