Tigers Tail
We all know that holding a tiger by the tail is a bad idea—you can’t hold on forever, but letting go is even worse. The same goes for companies that fiddle with inventory valuations to boost profits. At first, it might seem like a clever way to show off some shiny numbers, but once you start, it’s like grabbing that tiger’s tail—you’re stuck. Inflated closing inventory leads to inflated opening inventory in the following year, and before you know it, you're stuck in a never-ending cycle of creative accounting.
Instead of focusing on real, profitable business, some industry leaders waste their time cooking the books, dragging down the company’s reputation along with their CFOs, audit teams, and shady advisors. If only they spent that energy on genuine business opportunities, the company could thrive far beyond its original vision. History is full of examples where companies, despite being industry leaders, ended up in disaster thanks to these antics. Remember, the tiger won’t just bite—it’ll swallow the whole company, remember Satyam Computers. So, maybe it’s time to remember that honesty really is the best policy.
By CA L.Muralidharan and CPA L.Mukundan
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