The Bottom of a Large Company Does a Good Job - Chapter 325



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Episode 325. Nobody Knows (1)

Long before Chae Kyung-jun visited Taeseong Security.

Even before the chairman told Kwon Tae-ho to send Chae Kyung-jun out.

A very important report was in progress in the president’s office of Taesung Bio.

There are only two people in the president’s office.

One of them is obviously the president.

The other was a man with the title of Chief Financial Officer and Executive Director.

He continued to report to the boss cautiously and in a low voice, as if he was afraid that someone might hear him.

His explanation was complex and long, but the boss never once raised an objection or asked any questions.

Because everything was explained in advance and the president gave his permission.

Now, the director of the financial management office simply reports the results to the president.

“… … So the accounting audit passed without a hitch.”

“Phew… … .”

As soon as word came out that it had passed, the president let out a sigh of relief as if he had been waiting for it.

I waited eagerly.

I had no choice but to wait.

Because the direction of the company may change depending on the results of the audit.

“How did those picky people get away with it?”

When the president asked, the director smiled.

“What can we do if they make a request from us? We have to accept it. Or else, would you at least reject our opinion?”

Refusal of opinion.

Companies above a certain size must undergo an annual accounting audit.

It is a guarantee that you can trust it because there are no problems in preparing the financial statements.

There are four outcomes of an accounting audit: unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion.

There are four, but in reality, there is only one opinion that a company should receive.

Fair opinion.

A qualified opinion is an opinion that is wrong in some part, and an inappropriate opinion is an opinion that is wrong overall.

If a qualified opinion is issued for two consecutive years, it is a serious matter that can lead to delisting.

A refusal of opinion means that the financial statements themselves could not be judged, which is also an unacceptable result from the company’s standpoint.

In that sense, Taesung Bio also requested only one result from the accounting firm in charge of the audit.

Fair opinion.

“Was there no opposition from the accounting firm?”

“It was a little bit, but fortunately I was able to convince him.”

Of course, accounting firms aren’t stupid either.

We conduct audits strictly and fairly in accordance with accounting standards called IFRS.

Accounting standards are like laws in accounting, so if they are violated, the financial statements will not be recognized as proper.

Then why do the president and the director have such a conversation?

Because accounting standards are not omnipotent.

Even with all those laws, there are ways to get around them, so how can accounting standards be free of loopholes?

Rather than saying it’s a hole, I would say it depends on your perspective.

If you look at it this way, you can apply it this way, and if you look at it that way, you can apply it that way.

It’s more of a gray area where there’s no clear answer.

In such cases, the company asks several experts to review the opinions.

-If interpreted this way, is there a possibility that it could violate accounting standards?

The conclusion was, it was okay.

It’s a little tricky, but it doesn’t violate accounting standards.

What happened next was a breeze.

The company did its accounting in a favorable manner.

Naturally, questions came from the firm in charge of the accounting audit, but answers were already prepared.

This is an answer that has been reviewed by experts.

The accounting firm seemed a little hesitant, but after reviewing it among themselves, they decided that it was a gray area and sent us an appropriate opinion.

Everything went as planned.

“I can now relax a little.”

But it was true that I was still nervous.

What if the accounting firm rejects it, saying it’s wrong?

If the result comes out as a limited opinion, the company will suffer a huge blow.

The boss kept worrying.

It was the first time I had felt this nervous since taking over as president of Taesung Bio.

The days of not being able to sleep and suffering from nightmares are now over.

The president’s gamble paid off.

“Thank you for your hard work, Director Seo.”

“Don’t mention it. I just did what I had to do.”

The one who came up with the idea was the director.

But from the president’s point of view, he had no choice.

Because we cannot just sit by and watch bad news strike the company as it prepares for listing.

Capital erosion.

Just thinking about that report made my whole body tremble.

Capital erosion occurred while he was in charge of the company.

What happened after that was obvious.

The listing will naturally go down the drain and the stock price will plummet like crazy.

Investments are flowing out and the company is struggling.

Biosa is a company that has been in the red for years.

Taesung Bio was no exception.

In that situation, if even investors left, there was no way to stop it.

So this is the best course of action.

The president consoled himself like this, holding his trembling hands.

The director noticed this and spoke softly.

“There is no perfect plan in the world, but I can say with pride that this time it is okay. This is the best scenario I have ever created. Even if Taesung headquarters finds out, I hope they will praise me, not criticize me.”

Taesung also did not grow up to be a very clean person.

There is definitely a gray area.

There were numerous illegal activities before the company became the dinosaur that it is today.

Taesung Bio is only a small part of them.

Even if the higher-ups find out, it won’t be a big problem.

The director thought so.

“Is that really so? Shouldn’t you have asked permission in advance… … .”

As soon as the work was over, the president’s voice began to tremble, perhaps because he was now afraid of the chairman’s wrath.

The manager spoke firmly.

“It’s already over. We can’t turn it down in this situation. Even if the chairman finds out, he’ll understand that this is the only way.”

“I guess so?”

The two men tried hard to push away the guilt and awkwardness that had blossomed in their hearts.

I couldn’t help it.

Saying that there was no other way.

That’s how Taesung Bio’s creative accounting was done.

It was exactly one month later that Kwon Tae-ho learned of this fact.

* * *

“They all came.”

“Oh, thank you. Just a moment.”

When I arrived at Taesung Bio, I sent a text message to Kwon Tae-ho before getting out of the passenger seat.

Actually, I haven’t reported everything I’ve done so far.

But this time things were a little different.

Not only was he moving around to other affiliates other than Taesung Construction, but he also came to Taesung Bio because of Chae On-ik’s guidance.

“Taesung Bio is a bit big. Is that okay?”

Chae In-ha asked worriedly, perhaps noticing that I was acting different than usual.

She knows now too.

It’s on a different level from the Taesung security days.

Something is bound to happen here.

“It doesn’t matter whether it’s big or small. The problem is that I get involved in a fight between brothers… … .”

Even though I knew it was his plan, I came because I was going to have to run into it anyway, and I was curious about what information Chae On-ik had.

If you want to catch a tiger, you have to go into the tiger’s den.

The fact that Chae On-ik led me to Taesung Bio told me two things.

One is that Taesung Bio is a subsidiary of Chae Tae-ik.

And another thing is that something fishy is going on at Taesung Bio.

Chae On-ik’s goal is to become the successor to the Taesung Group.

In order to do that, we must first shake Chae Tae-ik’s firm position, but that is impossible without some extraordinary circumstances.

That is, Taesung Bio has materials that can shake up Chae Tae-ik.

“If Onik Oppa sent it, does that mean Taesung Bio is Taeik Oppa’s weakness?”

“Probably so.”

“Then wouldn’t it be advantageous for Onik Oppa if Taesung Bio was overturned? It seems like Onik Oppa was trying to use the team leader.”

That’s right.

I ended up attacking Chae Tae-ik unintentionally.

“I already sent a text message to CEO Kwon Tae-ho because of that. Let’s just wait a little bit until he responds.”

We parked our car in the parking lot and chatted for a while.

There was no need to explain at length the text I sent to Kwon Tae-ho.

That we arrived at Taesung Bio, and that it was thanks to Chae On-ik’s guidance.

If you tell me just these two things, Kwon Tae-ho will know the rest of the context better.

Because there are people who have more information than me.

“If Taeik oppa becomes hostile, I will somehow find a place for him.”

Chae In-ha looked very tense and had a determined look on his face.

“Are you close with Vice Chairman Chae Tae-ik? There’s quite an age difference between us.”

“No, we’re not really close. Taeik became independent early on. These days, we only see each other two or three times a year.”

“I see you’re coming to my house for the holidays.”

“Holidays and ancestral rites. But even if we’re not close, we’re still siblings after all. Surely he wouldn’t refuse a request to talk to me.”

“Don’t push yourself too hard.”

“no.”

Chae In-ha said firmly.

“I’ve been thinking lately that maybe this is my role. Of course, the team leader is capable, but he can’t easily touch our family history. I think I can be the bridge between them. No, I think I’m the only one who can do that.”

I looked at Chae In-ha quietly.

It seemed like I had a certain goal set.

If that’s the case, then it’s none of my business.

Chae In-ha is also an adult and will have her own thoughts.

“So, Team Leader, don’t worry about who’s behind Taesung Bio and just do it. Even if Taeik doesn’t listen to me, Father likes me. If it’s for the youngest daughter’s favor, wouldn’t he forgive me even if I cause a major accident?”

Chae In-ha winked.

I just started laughing.

I don’t mind being aware of one’s own position and using it to gain an advantageous position.

Rather, Chae In-ha has lived an ordinary life so far, unlike other members of the owner family.

At that time, a reply came from Kwon Tae-ho.

It was pretty fast.

-Please do.

The reply was also short.

So much so that there is no room for interpretation.

But there was a context that could be read within it.

“Maybe CEO Kwon Tae-ho dragged me in on purpose.”

“It was Onik oppa who led me here.”

“That’s separate from that. At the very moment when the sibling feud was about to begin, you gave me the authority to intervene in various affiliates. That meant I could go and cause trouble.”

“The timing is exquisite. But if you two fight, won’t the shrimp get their backs broken in the middle? Are you saying that CEO Kwon intentionally planned this situation?”

“Chae In-ha will make sure my back doesn’t break.”

When I smiled and returned the words I had said earlier, Chae In-ha blushed.

I spoke a little seriously, without any playfulness.

“I don’t think the boss doesn’t know. But he put me in the middle… … That’s right. It seems like he wants to mediate the fight between the two of you through me.”

“Is that possible?”

“I think I would have done that. If I can do it, I’m sure President Kwon Tae-ho can do it too, right?”

Chae In-ha’s eyes widened.

Oh, I know those eyes.

He has eyes that say, “There are so many crazy people out there.”

Even Chae In-ha, who has become accustomed to hanging out with me, sometimes makes this kind of expression.

I got a reply, so I got out of the car and stretched.

“I set the stage for you on purpose, but since the Vice Chairman won’t budge, I guess I’ll have to kick his butt.”

“The team leader said the same thing. Whether it’s a project or a business, you won’t see results in a short period of time.”

“But by now, there should be a big news article saying that you’re starting a new project. If not, you’re either doing something behind the scenes or you’re still lost.”

“Isn’t this the time to do something underwater?”

“Yes. Now is the time to show it. Because I spread the word. ‘I’m going to show you something!’”

How desperate I was to get a chance.

The vice president had a chance to move, but his butt was too heavy.

I also felt a little annoyed.

I guess we got Kwon Tae-ho’s permission, so let’s try something at Taesung Bio.

We entered the building feeling like we were opening a gift box, not knowing what awaited us.