Wednesday, April 26, 2023

CHARTERED ACCOUNTANTs AND THEIR GLAMOROUS WORLD | hguy.blogspot.com

 


There is one group of privileged people who never come under the scanner and have lived a life of gleeful abundance. They are the Chartered Accountant of India.

 

 

Let me explain. Work is always forced down their throats. That too by an act of the parliament. The law says accounts have to be audited and approved by a Chartered Accountant then only it will be accepted by the govt.

 

 

Now can you see the loophole here? Let me explain again.

 

Take for example Swiggy. They earn 10 bucks per delivery. They have many deliveries morning to night in every town, city, and state daily. Right. Now end of the year all this needs to be accounted for. But they, if they want, can show only 50% of the total delivery and keep the rest of the money unaccounted for themselves. They don’t have to share it with anyone, don’t have to pay tax.

 

Now how can they do it? With the help of CA. The 10 bucks that they receive goes into a bank. Right. But it's not one bank but rather quite a few banks coz it’s an all-India company. And maybe the 10 banks for a big city like Bangalore. So they have 500 bank a/c's. While auditing they show only 250 bank accounts. At one go a big chunk of money is hidden. Who is supposed to catch it? The CA's. And if they don’t, there is no other cross-check or monitoring agency to catch such delinquents. The sign and seal of a CA stating that he has audited the accounts and all is changa is all the Govt. requires. The Govt. passed the law but who pays the CA's - the businessman. So he is bound to bend his head here. Sir, you went on a foreign trip with ur wife and kids. Ok, don’t worry! we will show it as a business expense. You bought a house for your GF. Don’t worry! We will manage. Sir, the food bill is too high esp. since you don’t serve food. Oh, your father is the caterer. No problem! We will manage.

 

Paytm and Vedanta are two companies waiting for shit to hit the ceiling. Does Warren Buffet, who is a shareholder in Paytm, know of the accounting golmaal this company perpetuates? Yes. But won’t do a thing coz he has invested money in it and prays for its survival.

 

You should see Adani's Chartered Accountant's office. A ramshackle place with about twenty chairs and tables with about half of them un-occupied auditing many billion billion dollar companies. wah bhai.

 

The big five-Arthur Andersen, Deloitte & Whatever, Ernst & Young, KPMG, PricewaterhouseCoopers- are the major beneficiaries of this scam. They earn million to create and approve fake accounts. Remember Satyam, ILFS – they should be called auditor scams.

 

 

But that’s not the story I want to tell today.

 

 

Years ago, I was called by the CA, a man of 50,  and his pretty assistant to the conf. room. I was made to sweat 20 mins before they even spoke to me. Then the old man pulled out a receipt from a folder and showed it to me. Is that yours? Yes sir, I replied. But it’s a liquor bill. It’s not allowed. You can’t give your bar bill to accounts. Well, the fact is we had 2 Koreans visiting our office and I was their liaison. They drank and played golf. I didn’t drink or play golf. But paid for it all and was duly reimbursed by the company. What happened was the amount of 760/- was deducted from my next salary (the boss later paid me cash).

 

That’s the work of a CA-be high and mighty and catch peanuts and let the big holes be.

So of all the black money in India, CA's are responsible for 100% of it. Turn it on its head. No CA. No black money.



#CA #paytm #vedanta #scams #auditing #byjus

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