Agriculture Maniac

Chapter 505 Auditing the Accounts; Yu Sanyuan is an Honest Man

Titan Group is a symbol of the collaboration between Sanyuan Agriculture, the Old Brooks family, and the Smith family.

As agreed, the company can use the technology and patents of Sanxi Electronics and the Western Technology Alliance.

Sanyuan Agriculture is responsible for research and development, design, production, transportation, marketing, and retail, and ultimately extracts 60% of the profits.

The Carlisle Group, owned by the Brooks family, was responsible for developing the European and American markets and drawing technical talent from Silicon Valley, ultimately taking 40% of the profits.

Old Smith was the main investor, responsible for publicity and hype, and for recruiting tech talent from Silicon Valley, ultimately reaping all the financial benefits.

Since its inception, Titan has received a total of $320 billion in funding from investors including BlackRock, Blackstone, Fidelity Investments, Goldman Sachs, and T. Rowe Price, all led by Stan Smith.

Thanks to the use of three-system OEM manufacturing, a complete technical team provided by multiple parties, three mature technology patents, and three existing market foundations, Titan Company, with the support of massive capital, has developed extremely rapidly, becoming a world-class trust in just three months.

In the field of electronic terminals, it has continuously launched 6.5-inch, 6.7-inch, and 7.2-inch multi-touch screen mobile phones, 11-inch, 13-inch, and 15-inch tablet computers, various models of all-metal shell mobile computers, high-performance commercial assembled desktop computers, and modular military electronic equipment.

In the field of software applications, it has continuously launched Android system, three-system Chinese system, Titan UI, Titan office software suite, Titan financial software, Titan enterprise management system, and many dual-use apps for military and civilian purposes.

In the audio-visual entertainment field, it has continuously launched more than 20 Hollywood blockbusters, more than 300 popular Chinese and English songs, more than 50 sets of serialized comics, and more than 2 Chinese and English serialized novels.

In the field of daily chemical products, it has continuously launched emergency bath products, care products, whitening cosmetics, air purification equipment, water purification equipment, and so on.

In the home appliance sector, based on its simplicity, ease of use, and space-saving design, the company has continuously launched kitchen systems, robot vacuum cleaners, mite removal robots, washer-dryer combos, baby/pet care robots, and complete smart home renovation services, among others.

In the automotive sector, based on elements of warfare, it has continuously launched AI-powered gasoline cars, AI electric cars, AI electric tricycles, AI electric bicycles, AI electric unicycles, and more...
In the pharmaceutical field, it has launched a series of products based on war elements, including Titan hemostatic products, Titan emergency medicines, Titan gene agents, and Titan health supplements.

In the field of communications, based on elements of warfare, it has continuously launched anti-jamming home radios, anti-jamming home FM radios, anti-jamming individual soldier walkie-talkies, anti-jamming global pagers, etc.

In the field of emergency response, based on elements of warfare, it has continuously launched Titan lithium batteries, Titan diesel generators, Titan small waste incineration power plants, Titan solar power systems, Titan wind power systems, etc.

In the food sector, based on elements of war, it has continuously launched products such as long-lasting frozen meat, long-lasting fresh beverages, long-lasting quality drinking water, and long-lasting quality sealing equipment...

In the financial insurance sector, leveraging the existing industries of third-party capital, it launches overlapping businesses, offering lower premiums, more comprehensive coverage, and higher compensation...
It can be said that Titan Group has everything that exists in the world, and with the comprehensive enhancement of three-system OEM, three-system technology and European and American technology, it has a higher cost performance and a better experience.

Therefore, the whole world knows that once Titan Group goes public, its market value will definitely far exceed that of Walmart and Western Power.

Against this backdrop.

Knowing that Titan Corporation was a shell company, Old Brooks and Old Smith, having already received benefits and created a good foundation for listing, would certainly not go out of their way to send someone to audit the accounts.

Even more so, the two of them didn't care at all whether Yu Sanyuan rented an office building or not.

But capital is cross-shareholding, with each holding shares in the other.

Just like BlackRock.

Major shareholder - Old Smith, holding 14% of the shares;

The second largest shareholder is the Old Bucarère Group, holding 5.5% of the shares.

The third largest shareholder is JPMorgan Chase, holding 5% of the shares.

The fourth largest shareholder, State Street Global Advisors, is dominated by an oil tycoon and holds 4.8% of the shares.

The fifth largest shareholder – Vanguard, holds 3.6% of the shares…
If a group of shareholders with less than three shareholders jointly requests to see 'BlackRock's investment details in Titan Group, as well as Titan Group's operating accounts,' even with Old Smith's help, Old Smith would be completely unable to stop them.

Therefore, this audit was actually a result of Morgan and the oil tycoon being unable to withstand the encroachment of Titan Industries and being forced to join forces to strike the first blow against Brooks and Smith.

In the eyes of J.P. Morgan and the oil tycoon, Titan Group was an empty shell, using OEM manufacturing and a mature industrial chain, with products essentially being private-label products.

Yu Sanyuan will definitely put a lot of effort into the image and facilities of the flagship store.

But for things like the headquarters office building that outsiders can't see, Yu Sanyuan only does superficial projects.

For example, high salaries, excellent benefits, generous welfare, a world-class corporate culture, and the world's best afternoon tea...
Then the entire empty detached building stood there.

Most importantly, intelligence indicates that Yu Sanyuan is receiving a salary without working.

Not only did they put animals from the three zoos in the company's offices, but they also hired tens of thousands of elderly people to pose as employees...
Therefore, J.P. Morgan and the oil tycoon did not hesitate to expose their own people who were lurking in the Brooks and Smith families, and launched a surprise audit in the name of Brooks-Carlyle Group and Smith Accounting Firm.

Once the loopholes are found, the major shareholder positions of Old Brooks in Vanguard and Old Smith in BlackRock will be replaced by the Morgan Group and Rockefeller.

This was so that Morgan and the oil tycoon could carry out the next purge plan, and then kick Brooks and Smith out of federal capital.

Overall, this was a 'counter-rebellion' within federal capital.

···
4 month 25 number.

More than 150 financial personnel, dispatched by Carlyle Group, one of the world's top ten military industrial enterprises, and KPMG, a world-class accounting firm, as investors and shareholders, arrived at the headquarters of Titan Group on the South Third Ring Road.

The team leader was an old acquaintance, Jack Welch, the chairman of General Electric.

At this time, Sanyuan Construction, Sanyuan Building Materials, Sanyuan Garment, Sanyuan Design Institute, and others had already renovated the five new office buildings of Sanyuan High-Tech.

The building's shape remained unchanged; only the door plaque was replaced, and the words "Titan Group Headquarters" were projected onto the side of the building using 3D holographic equipment.

Then, employees of Sanyuan Hi-Tech were instructed to go to the original Titan headquarters warehouse according to their own positions, change into the corresponding Titan uniforms, Titan work badges, and Titan manager identities, and enter them into the system.

Sanyuan High-Tech is currently the most powerful R&D center of Sanyuan Agriculture, with highly qualified, cultured, and technically skilled personnel. Now, they are impersonating Titan to hire them, which is a case of low-level positions with high-level qualifications, no pressure, and they are worthy of Titan Group's high salaries and benefits.

Meanwhile, Yu Yang also reassigned a group of overweight, dark-skinned men for security, replaced thousands of MT robots with Titan brand ones to serve as service robots, and appointed 16 young women as receptionists and secretaries...

Therefore, when the audit team entered Sanyuan Hi-Tech's new building, they did not notice anything unusual.

The old fox, Welch, chatted casually with Yu Yang as he walked toward the front desk.

Then, I subtly engaged in question-and-answer sessions with the eight receptionists, even touching on some professional knowledge.

The young women worked at Far East Trading Company for two years, witnessing firsthand the rise of a super resource enterprise. They then worked at MT Company for two years, participating in the rise of a super technology group. Now they have moved to Titan Company... With the guidance and mentorship of Boss Yu, their professional skills have already reached the international top level.

When Welch mentioned AI, the young girls explained their techniques and experiences with databases, large models, central processing units, and training models.

When Welch mentioned electronics, the young girls explained hardware, software, raw material supply, contract manufacturing, and retail.

When Welch mentioned personnel, the young women explained human resources, administration, salary formulas, and so on.

When Welch mentioned corporate culture, the young women elaborated on values, mission, ethical standards, strategic orientation, organizational cohesion, building competitiveness, the "catfish effect," and so on.

Welch finally looked at Yu Yang and asked, "Did you transfer your factory operations team here?"

"What a joke, all the factory secretaries are top-notch in the world, how could they possibly come here with such a low-level position and high-level rank?"

As Yu Yang spoke, he opened the Titan Human Resources Management System and pulled up the files of eight girls.

Date of employment, resume background, work experience... all of the above have a 'timestamp'. Although timestamps can be changed, professional tools can identify the changes and find the original data.

And the 16 girls were indeed among the first batch of employees of Titan Corporation.

Finally, Welch, unwilling to give up, went into the office area.

In the mobile phone R&D department, he had a long chat with the "three-series terminal R&D engineers" from Sanyuan Hi-Tech.

In the PC R&D department, he had a long chat with the 'three-in-one PC R&D engineer' from Sanyuan Hi-Tech.

In the system R&D department, he had a long chat with the "Chinese system engineer" from Sanyuan High-Tech. In the electrical appliance R&D department, he had a long chat with the engineers from MT Home Appliances...

In the automotive R&D department...
In the war food department...
In the Department of Daily Chemicals...
In the company cafeteria...

At the afternoon tea event...
Wait until evening.

After dinner, Welch arrived at the Titan chairman's office with a look of utter disbelief.

"Mr. Welch, you seem unhappy? Is there something wrong?"

"No problem, that's great, we have a lot of top talent."

"But why are you unhappy?"

"Really? I'm very happy."

However, auditing accounts is not that simple.

The first day was just for site surveying.

The next steps are account reconciliation, tax audit, document comparison, and data verification.

Simply put, there cannot be any discrepancies between the 'purchase, sales, and inventory' values.

However, with the advent of computerized accounting, all data is stored in computers.

With the help of AI, a flawless 'ledger' can be generated autonomously based on existing inventory, past sales, and past taxes.

So the next day, the auditors initiated a customized audit procedure, read Titan's financial data, and reviewed it all in one go.

"this···"

Welch incredulously ordered the auditors to read it again.

In the past, when the program read a company's financial data, it would check the reasonableness of the depreciation period of fixed assets and the compliance of the residual value rate. Then it would pause, wait for manual verification, recalculate the depreciation amount, trace the data difference, and then correct the total amount of fixed assets.

This process will take approximately 1 to 3 weeks.

Furthermore, handwritten accounting vouchers may contain smudges, alterations, or non-standard writing, just like a banknote detector will inevitably encounter glitches even when all the banknotes are genuine.

Furthermore, any company's books can become disorganized, and the auditing program will automatically pause when it reads this data.

The signatures on sales contracts vary widely, and the audit process will automatically pause if the signatures are not recognized.

But now, all these factors have been taken into account...
“Use the reverse lookup method (reports → ledgers → vouchers) and read it again.”

With Welch's words, the reading was even faster this time.

whoosh...

The audit process exploded like fireworks on the screen.

[Absolutely perfect, industry standard!]
Welch: "..."

Auditor: "..."

Looking at everyone's expressions, Yu Yang almost burst out laughing. "Mr. Welch, is there a problem?"

"That's...no problem, but I want to know, why is this happening?"

Welch described all the problems encountered during the audit, such as vouchers, messy accounts, and signed sales contracts, and said, "Titan Corporation does not seem to have these elements."

"Oh, this? Don't you know that whether it's the Far East Trading Company, MT Company, or the three companies, they all use mobile payment?"

"Forehead···"

"For example, Mr. Welch, you go to the Titan flagship store to buy a mobile phone, choose the model you like, pay with facial recognition, and take the phone. At this time, the payment you made will enter the bank system, generate a transaction record, then automatically report taxes, and then enter it into the Titan financial system. At the same time, the store inventory → Titan total inventory decreases by 1, Titan sales increase by 1, all data are updated synchronously, and all data can be traced back."

If you use an auditing program to check accounts, the program essentially runs along the data loop; it doesn't need to perform calculations, identify errors, or apply logic. It finds errors where they are, and moves on if there are none—it's very simple.

After Yu Yang finished speaking, he patted Titan Company's integrated financial machine. "This system has saved the company's financial system four-fifths of its manpower, increased the company's efficiency by three times, reduced the company's operating costs by three-fifths, and only requires a rental fee of 2000 million US dollars per year."

As the chairman of General Electric and a confidant of J.P. Morgan, who led companies such as General Dynamics, General Telegraph, and General Mills, Welch was very interested upon hearing this.

But the mission of this trip is to find loopholes and take down Old Brooks and Old Smith.

Now we can't find the problem, but we have to spend money...
"Mr. Yu, we need to take inventory of the stock next."

"no problem."

Yu Yang found eight other young girls and had them take the auditors to the Titan warehouse and the Titan flagship store.

Titan products sell well all over the world, thanks to solid sales figures.

Titan Warehouse is real, and the flagship store is definitely real too.

The inventory is matched with the 'purchases' and 'sales' records, and then matched with the financial statements. Even a genius couldn't find any fault with it.

So, after Yu Yang resolved the 'audit' issue, he turned his attention to Welch.

The other party came on behalf of Carlyle Group and BlackRock shareholders.

It's now basically certain that the accounts are in order, and the next step will definitely be for the 'investee' to ask the 'investor' for money.

"Mr. Welch, Titan Group's booming success is the result of high investment and high returns, and the joint efforts of hundreds of thousands of highly skilled personnel. I have decided to increase employee salaries by 30% starting from the end of 05, and invest in an employee activity center. Otherwise, we will be overtaken by Sanyuan High-Tech next door and MT Group across the street... You should know that Huang Ganchen's 'Urban Development Theory' applies to all enterprises. If an enterprise is sucking blood, it will naturally suck blood from its peers. If we are sucked dry, Titan Group will inevitably stop its upward momentum."

Although Welch hoped to find out the problems with the Titan Group in order to take action against Brooks and Smith, the Titan Group also provided profits for the Morgan financial group due to cross-shareholdings between the capital groups.

Since there was money to be made, Welch didn't want Titan to go bankrupt.

Moreover, Yu Yang, knowing full well that Old Brooks and Old Smith jointly invested in Titan Company to counter Old Morgan and the oil tycoon, still asked him for money, which clearly indicated that he intended to bring Old Morgan into Titan Company's shareholder list.

Welch thought about how Sanyuan Agriculture's cooperation with JPMorgan Chase and Morgan Stanley was decreasing year by year, and asked, "How about Goldman Sachs investing $50 billion?"

“I hold 60% of the shares. Given Titan Group’s current size, 50 billion wouldn’t buy 10% of it.”

"Then I will report to Mr. Morgan and then determine the specific amount."

"completely fine."

After Yu Yang ended the topic, he chatted with Welch for a long time before the latter took his leave.

The accompanying factory secretary spoke up, "If we invite old Morgan to invest in Titan Company, wouldn't that disrupt old Brooks and old Smith's plans?"

"It's better if things are chaotic; how can we reap the rewards if things aren't chaotic?"

“In that case, Old Brooks and Old Smith will definitely oppose Old Morgan’s investment as shareholders.”

“We hold 60% of the shares, so we are the major shareholders. They have no right to refuse.”

(End of this chapter)