[Archived] 40 Venky's Premises raided by Indian Tax Officials

[Dunnfc]

36 minutes ago, Brian-Potter said:

I have finally managed to speak to an ex colleague and friend who used to work here and is now a corporate insolvency lawyer a PWC. He hasn't heard any rumours of admin being considered at Rovers, he said that if admin was being looked at its highly unlikely two of the big four would be brought in, especially when Rovers is a £20m turnover company with a fairly simplistic business model. He also thought that it's strange for Venkys to ask two firms to provide them a full process audit mainly due to the costs and again the model of running the business, i.e a football club is simple one and doesn't need to be looked into to that amount of detail.

His view was that it points to a sale, one firm is working for Venkys and the other for the buyer.

Possible but some of the admins within football appear quite a mix tbf.

 

[Bigdoggsteel]

Just now, chaddyrovers said:

According to Nixon these accountants have been in since Monday before. So the day after we went down

Could Nixon or some "journalist" at the LT actually find out what the hell is going on. I am getting ahead of myself big time picturing a happy world where I never have to come across Venkys ever again. 

[Dunnfc]

12 minutes ago, PLJPB said:

Filing today at Company's House shows the Raos put another £5,794,146 into Venkys London Limited as share capital which will presumable have been immediately lent to BRFC Ltd to keep us afloat. Could this have been needed to pay off one of the short term loans?

Also maybe this further cash need so soon after putting £666k in in February has prompted whatever KPMG & Deloitte are at Ewood for.

 

Saw this just before monies for summer as I heard we got knocked back for a small loan and a Desai private account paid staff wages last month

[pentelrobot]

I cannot imagine that Venkys would appoint two firms of accountants to advise on the options available to them. The more likely scenario is that  there is a buyer in the offing and that one firm represents the buyer, the other Venkys, all as part of the due diligence process. I think it less likely that there are two potential buyers-it has probably been difficult enough to find even one buyer willing to take over our basket case of a club.

Someone mentioned earlier in the thread that Ian Battersby  had said in the Radio Lancs interview that there was "nothing in the offing" as far as Seneca were concerned, but to be fair to the guy, even if there were moves afoot he would hardly broadcast that fact , because confidentiality is paramount in business takeovers. I am more inclined to believe the Chinese connection because that is where the money is these days and Venkys have said they would not sell to local buyers.. Just hope it's not a case of frying pan and fire.

[AllRoverAsia]

Just now, pentelrobot said:

I cannot imagine that Venkys would appoint two firms of accountants to advise on the options available to them. The more likely scenario is that  there is a buyer in the offing and that one firm represents the buyer, the other Venkys, all as part of the due diligence process. I think it less likely that there are two potential buyers-it has probably been difficult enough to find even one buyer willing to take over our basket case of a club.

Someone mentioned earlier in the thread that Ian Battersby  had said in the Radio Lancs interview that there was "nothing in the offing" as far as Seneca were concerned, but to be fair to the guy, even if there were moves afoot he would hardly broadcast that fact , because confidentiality is paramount in business takeovers. I am more inclined to believe the Chinese connection because that is where the money is these days and Venkys have said they would not sell to local buyers.. Just hope it's not a case of frying pan and fire.

Out of the frying pan and into the wok

[AllRoverAsia]

Just now, chaddyrovers said:

According to Nixon these accountants have been in since Monday before. So the day after we went down

If that is the case then even more suprising that there is no Ewoodgate or Cheston giving a Deep Throat impression.

[Brian-Potter]

Just now, Dunnfc said:

Possible but some of the admins within football appear quite a mix tbf.

 

But not two firms working alongside each other though :-/

[Brian-Potter]

The additional injection of funds simply complicates things further, the date of this increase in capital is 19th April, and before we were relegated. It leads me to believe that firstly Venkys are not short of funds, and unless something drastic has changed in the last month they have no intention of selling either. Was £850,000 of this to cover Deloitte / KPMG's fees with the rest to see us through the summer? It's a substantial investment at nearly 25% of annual turnover.

Also of the accountants rocked up at Ewood on Monday that is something that has been planned.

The more that this goes on and the more snippets of info we get I start to feel that they aren't going anywhere, admin is not going to happen, a sale is even less likely and KPMG / Deloitte are working for Venkys as reported. Strange way of doing things but then this is Venkys! 

[Dunnfc]

Just now, Brian-Potter said:

But not two firms working alongside each other though :-/

Depends on the quantum of who is assisting. I've heard it's more than ten bodies in the building.

Obviously pre-planned but for how long, circa 3 weeks? Since they last made the cash transaction mid/end of April, possibly but it won't be KPMG on Navigation Way, Preston as they wouldn't have the resources readably available I don't think. Manchester, St Peter's Square possibly but you've usually been talking to the accountancy team for about a month in advance especially if your going in if your the one appointing them. I know Manchester specialises in corp. finance, tax assistance but real estate I'm not sure. Deloitte do allot of forensic accounting based in Manchester as my brother has just applied there.

Would be very unusual if they were both in together at the same time, I don't think they (KPMG) have a property team in Manchester it's normally outsourced to someone like Naismiths LLP from experience to do the valuing of property and fixed assets as such then recommend to KPMG etc.

Odd. Very odd.

[Brian-Potter]

Just now, Dunnfc said:

Depends on the quantum of who is assisting. I've heard it's more than ten bodies in the building.

Obviously pre-planned but for how long, circa 3 weeks? Since they last made the cash transaction mid/end of April, possibly but it won't be KPMG on Navigation Way, Preston as they wouldn't have the resources readably available I don't think. Manchester, St Peter's Square possibly but you've usually been talking to the accountancy team for about a month in advance especially if your going in if your the one appointing them. I know Manchester specialises in corp. finance, tax assistance but real estate I'm not sure. Deloitte do allot of forensic accounting based in Manchester as my brother has just applied there.

Would be very unusual if they were both in together at the same time, I don't think they (KPMG) have a property team in Manchester it's normally outsourced to someone like Naismiths LLP from experience to do the valuing of property and fixed assets as such then recommend to KPMG etc.

Odd. Very odd.

Totally agree with you, this just gets stranger by the day and makes no logical sense - but hey this is Venkys!

[Glosrover]

11 minutes ago, pentelrobot said:

I cannot imagine that Venkys would appoint two firms of accountants to advise on the options available to them. The more likely scenario is that  there is a buyer in the offing and that one firm represents the buyer, the other Venkys, all as part of the due diligence process. I think it less likely that there are two potential buyers-it has probably been difficult enough to find even one buyer willing to take over our basket case of a club.

 

would it be KPMG and Deloittes in that case?

Venkys would have a cheap local law firm, Norfolk 'n Chance............

[SIMON GARNERS 194]

Wonder if their looking at the scrap value of our Trophy room and Jack's Statue?

[PAFELL]

Just now, Dunnfc said:

Depends on the quantum of who is assisting. I've heard it's more than ten bodies in the building.

Obviously pre-planned but for how long, circa 3 weeks? Since they last made the cash transaction mid/end of April, possibly but it won't be KPMG on Navigation Way, Preston as they wouldn't have the resources readably available I don't think. Manchester, St Peter's Square possibly but you've usually been talking to the accountancy team for about a month in advance especially if your going in if your the one appointing them. I know Manchester specialises in corp. finance, tax assistance but real estate I'm not sure. Deloitte do allot of forensic accounting based in Manchester as my brother has just applied there.

Would be very unusual if they were both in together at the same time, I don't think they (KPMG) have a property team in Manchester it's normally outsourced to someone like Naismiths LLP from experience to do the valuing of property and fixed assets as such then recommend to KPMG etc.

Odd. Very odd.

Wasn't there an article in the LT that said there was a plan if we stayed up and one for if we were relegated. Hence Senior leaving and accountants coming in very soon after being relegated.

[Tony Rover]

Just now, SIMON GARNERS 194 said:

Wonder if their looking at the scrap value of our Trophy room and Jack's Statue?

So sad it could be true!

[Brian-Potter]

Just now, Glosrover said:

would it be KPMG and Deloittes in that case?

Venkys would have a cheap local law firm, Norfolk 'n Chance............

Not for something like that as it would need to carry some weight when negotiating with the other party.

As posted earlier though following the recent cash injection by Venkys I'm not sure they are going anywhere.

[Bigdoggsteel]

Just now, PAFELL said:

Wasn't there an article in the LT that said there was a plan if we stayed up and one for if we were relegated. Hence Senior leaving and accountants coming in very soon after being relegated.

Venkys? Plan? 

[Tony Rover]

No plan with this lot, just a constant shower.

[Brian-Potter]

37 minutes ago, Dunnfc said:

Saw this just before monies for summer as I heard we got knocked back for a small loan and a Desai private account paid staff wages last month

Are wages not paid directly from India? If so then Rovers own financial position / available funds wouldn't impact upon payment of wages. 

If it were the case I would imagine that Rao money would be transferred to the business to cover the wages. Can't see them being paid directly from a private Rao account, the admin alone in doing that would be prohibitive not to mention the accounting implications.

[RV Blue]

Just now, Brian-Potter said:

Not for something like that as it would need to carry some weight when negotiating with the other party.

As posted earlier though following the recent cash injection by Venkys I'm not sure they are going anywhere.

If wages need to be paid, they need to be paid.

[AllRoverAsia]

Just now, Brian-Potter said:

Not for something like that as it would need to carry some weight when negotiating with the other party.

As posted earlier though following the recent cash injection by Venkys I'm not sure they are going anywhere.

Perhaps Wonga were due a payment plus usual running costs and wages over the summer.

Best to make things look as normal* as possible if trying to offload the Club which itself is a lenghy process.

Ok seen re India rumoured to be paying wages. Desai's private account? I do not think so. Someone is having a laugh at us.

*Yes I know 

[philipl]

2 hours ago, Brian-Potter said:

I have finally managed to speak to an ex colleague and friend who used to work here and is now a corporate insolvency lawyer a PWC. He hasn't heard any rumours of admin being considered at Rovers, he said that if admin was being looked at its highly unlikely two of the big four would be brought in, especially when Rovers is a £20m turnover company with a fairly simplistic business model. He also thought that it's strange for Venkys to ask two firms to provide them a full process audit mainly due to the costs and again the model of running the business, i.e a football club is simple one and doesn't need to be looked into to that amount of detail.

His view was that it points to a sale, one firm is working for Venkys and the other for the buyer.

Agreed- the recapitalisation of VLL when we were in effect 5 points from safety in April also pretty well rules out administration.

There is enough cash in the tank to pay KPMG to put lipstick on the pig, hide her incontinence, and meet half the summer's cash needs.

The fact that Deloittes haven't turned up yet would support Brian's hypothesis that they will be doing due diligence for the other side (buyer) when they eventually roll up.

I would ignore anything being said inside the club. Venky's style is not to tell the management and staff anything. I guess we can all agree on that based on the last six and a half years.

 

[philipl]

28 minutes ago, Brian-Potter said:

Are wages not paid directly from India? If so then Rovers own financial position / available funds wouldn't impact upon payment of wages. 

If it were the case I would imagine that Rao money would be transferred to the business to cover the wages. Can't see them being paid directly from a private Rao account, the admin alone in doing that would be prohibitive not to mention the accounting implications.

apparently the most recent wages came from a private trust fund in India. 

[OJRovers]

You wouldn't put £6m into the club if it was in the process of being sold (for nothing).

This is more capital than they have put in for 2/3 years. Why now? They've let the club spend £1m+ on interest vs transfers of £250k in that time.

Nothing makes sense with this lot, unless there are benefits they are getting from washing this money through the club.

[davulsukur]

Can't get carried away with any sale talk, I don't think I'd survive if I got carried away and then Venkys stayed.

[Lancaster Rover]

I don't expect anything to come of this now to be honest, we've gone from nailed on for admin to preparing for imminent sale, which is un-Venkylike in extreme