Financial Daily from THE HINDU group of publications
Tuesday, Dec 03, 2002
Financial Daily from THE HINDU group of publications Tuesday, Dec 03, 2002 |
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Accounting Standards Corporate - Accounting Standards Top Wipro GE execs quit over accounts fiasco Chitra Phadnis
BANGALORE, Dec. 2 THE Chief Financial Officer and a number of junior executives of the Finance Department of Wipro GE Medical Systems put in their papers recently. This came close on the heels of the fiasco over wrongly-estimated losses last quarter. The company had overestimated revenues by Rs 38 crore. When contacted, the company confirmed the "changes", but refused to comment on the matter. A GE task force was in Bangalore to audit Wipro GE's accounts. The resignations happened sometime in September, the time around when the report was submitted. The CFO in Wipro GE is nominated by GE, which is a 51 per cent controlling stakeholder in the firm. Sources close to the company opined that it was not so much fiddling with accounts for personal monetary gain, as "callousness" in accounting. Usually, in such cases, either the CFO or the CEO is expected to take responsibility and resign, they said. In the case of Wipro GE, the Managing Director, Mr A. Shankar was new, taking over from Mr D.A. Prasanna, who moved to head Wipro Healthcare and Life Sciences as Vice-Chairman in April this year. So the CFO took the rap, said sources.
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