New Delhi: The Ministry of Corporate Affairs (MCA) had developed an early warning system (EWS) to detect corporate frauds after the Satyam scam. Now, it has detected financial irregularities in 160 companies, out of which 30 are government, according to PTI.
"We have asked the Registrar of Companies to inspect the books of about 130 companies based on the preliminary findings of the EWS and some 30 PSUs would be referred to the Comptroller and Auditor General," an official source told media. The software-based fraud detecting system scans firms based on 10 financial parameters set by the ministry.
"We have asked the Registrar of Companies to inspect the books of about 130 companies based on the preliminary findings of the EWS and some 30 PSUs would be referred to the Comptroller and Auditor General," an official source told media. The software-based fraud detecting system scans firms based on 10 financial parameters set by the ministry.
The sources said the EWS has detected discrepancies like fund diversions in own subsidiaries as well as other firms, irregularities in filing balancesheets, and asset-liability mismatch. "There are some blue-chip companies against which the EWS has given out alerts and we are also carrying out inspections, both invasive and non-invasive, of their books as per Sections 209 and 234 of the Companies Act," the official said without divulging the names of the companies in question.
With the early warning system, the corporate affairs ministry sources said, unusual developments are looked into by scrutinising the quarterly results of companies, their public announcements, filings with exchanges, tax returns, and media reports among others.
Courtesy : Silicon India Daily
No comments:
Post a Comment