News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
Top Headlines »
 CBDT issues this important note - All you need to know Income Tax alert
 FY 2018-19 Revised Income Tax Return Filing: Step by step guide on how to do it online
 ITR filing date for FY19 extended: Here's how to do it online
 5 Common Mistakes That Can Draw Income Tax Notice ITR Filing
 Income-tax (18th Amendment) Rules, 2020
 10 tax-saving fixed deposits that offer the best interest rates
 ​Amendment of rule 31​​AA, Form 27EQ
 CBDT extends FY19 income tax return filing deadline till September 30
 7 Money and tax tasks you should complete by July 31, 2020
  5 deadlines that end on July 31 ITR filing to investing for claiming deduction
 Who is eligible to file which tax return for FY 2019-20? ITR form

Govt orders probe into 8 cos promoted by Raju
January, 09th 2009

The government on Thursday ordered a probe into all the eight companies promoted by Ramalinga Raju, the former chairman of Satyam Computer Services. Raju had on Wednesday admitted to cooking up books of Satyam, Indias tier one IT services company.

Simultaneously, in a move that is directed to look at the role of the auditors, the government has directed the Institute of Chartered Accountants of India (ICAI) to look into the way PwC carried out auditing of the company.

The Registrar of Companies (RoC) would investigate the operations of the eight Satyam group companies under section 209 (A) of the Companies Act, minister of corporate affairs Prem Chand Gupta told reporters. The eight companies to be probed are Maytas Properties, Maytas Infrastructure, Satyam BPO, Nipuna Services, Knowledge Dyanamics, Nitor Global Solutions, CA Systems ASP and Satyam Venture Engineering.

The secretary to the ministry of corporate affairs, IT secretary, law secretary and the finance secretary met this morning to discuss the possible course of action, Mr Gupta said. MCA is working in co-ordination with the Andhra Pradesh government as the company is headquartered in Hyderabad. Declining to give a direct answer on the possibility of appointing government directors on the Satyam board, the minister said I would not like to comment on that. But there are provisions regarding that.

Accounting regulator, ICAI, on the other hand, will examine the internal working paper of PWC, on the basis of which it carried out auditing of Satyam. The examination of the internal working paper detailing the audit strategy would help the government and the regulators find out whether the auditors had any prior information of the fraud being committed and if they in any way had deliberately suppressed the information.

ICAIs Financial Reporting Review Board (FRRB or the Board) would ask PwC to submit the internal working paper within three days. FRRB is a panel of ICAI that reviews companies compliance with the accounting and auditing standards issued by ICAI. The aim of the Board is to improve the overall quality of works executed by the members of the profession.

The MCA is co-ordinating with the law, IT and the finance ministry to protect the interests of small investors and the Satyam employees.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting