Auditing As Performance Art

The shenanigans of auditing firms

Jagathi Publications, whose promoter is Jagan Mohan Reddy of YSR Congress, was valued at Rs 196 crore by a Chennai-based auditing firm Jagadeesan and Co, despite an accumulated loss of Rs 319 crore staring in one's face. 

Not happy with this valuation, Jagathi Publications sought the services of the formidable Ivy League accounting firm Deloitte Touche Tohmatsu India (P) Ltd, which first put a value of Rs 2,500 crore on the business, based on its self-generated business plans for the next five years, and later on inflated it further to a staggering Rs 3,500 crore. 

Nice job folks.

Deloitte Does A PwC On Jagan's Media Empire

That is the correct headline for this story: Deloitte does a Satyam with Jagan's media empire.  

Deloitte manipulated the valuation of Jagati Publications up to Rs 3,500 crore instead of an actual valuation of Rs 2,500 crore and even predated the valuation to enable Jagan’s company sell equity stakes at high premiums of over Rs 350 per scrip. P N Sudarshan, senior director of Deloitte Touche Tohmatsu India Private Limited, on Wednesday made a startling confession to the Central Bureau of Investigation (CBI) that Jagan’s clout and political pressure drove the company to compromise on credibility and concede to their demands.

"Startling confession" indeed.