Enron Mail

Subject:India Internal Controls Assessment & Review and Cash Controls
Date:Sun, 12 Nov 2000 23:44:00 -0800 (PST)

Cc: ken.rice@enron.com, jeff.skilling@enron.com
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This is disturbing. I can not understand how an HR employee for an Enron
business unit can deny access to what appears to be an Enron auditor on the
grounds that the records being sought are confidential. As you know Sanjay
reports to both Ken and myself in support of EBS Asia activities as well as I
believe McDonald for Global Assets. Given this split accountability, and the
fact that I do not know which business unit these records apply to, you as a
representative of Corp should probably require that Enron be given access to
these records as part of your audit responsibilities. If you think it
appropriate for me to make the request I will be happy to do so.


----- Forwarded by Kevin Hannon/Enron Communications on 11/13/00 07:35 AM

Juan Camarillo@ENRON
11/13/00 01:38 AM

Communications@Enron Communications, Kevin Hannon/Enron Communications@Enron
Subject: India Internal Controls Assessment & Review and Cash Controls

India Management,

We are in the process of conducting a follow-up of the Internal Controls
Review that was conducted last year at EIPL. We are also conducting a
compliance review of the Cash Controls Standards that were recently issued by
Enron Assurance Services. On November 3rd, we informed Milind Laad, EIPL
Controller, and Carol Howes, Sr. Dir. Fin. & Acctg., that we would be
conducting a visit to EIPL to perform the follow-up Internal Controls Review
and a Cash Controls Standards audit. An Internal Controls Review entails
reviewing not only financial areas but other departments such as legal, IT,
operations, etc.

We started our testing late last week and were informed that supporting
documentation for certain accounting transactions reside in HR. We then
scheduled a meeting with the head of HR, Sandip Malik, to request supporting
documentation for the transactions and other information that is more
relevant to HR as part of our Controls Review. Mr. Malik denied access to
the records on the basis that they are confidential. Apparently, not even
the Controller has access to some of the supporting documentation. Mr. Malik
stated that we needed to give him a request list, so he could clear it with
Sanjay Bhatnagar. We informed him that we could not give him a list but
needed general access because we did not want to go back and forth with
lists given my limited time here in India and logistical difficulties in
communicating with Mr. Bhatnager. Mr. Bhatnager apparently was on vacation
and now is travelling to Houston. Given the time difference, I am requesting
that Mr. Bhatnagar or one of the upper management executives responsible for
India send a communication to Mr. Malik and instruct him to give me access to
the Enron Records.

I apologize for the inconvenience, but I had not previously experienced the
situation where I was not given initial access to the records. I am also
interested in obtaining access to the payroll records for Arthur Andersen so
they can test the project allocations developed by HR.

Thank you,

Juan Camarillo
Enron Assurance Services