ICAI initiates enquiry into issues involving NSEL auditors

New Delhi: Accounting regulator ICAI Friday said it has referred to the disciplinary committee the matter involving auditors of National Spot Exchange Ltd on a complaint following the Rs 5,600 crore payment crisis at NSEL.

Besides, various details have been sought by Institute of Chartered Accountants of India (ICAI) related to Financial Technologies (FTIL), a promoter entity of NSEL, after the firm's auditor withdrew the audit reports this week.

"We have referred the matter (of NSEL auditor) to the disciplinary committee. A complaint in the NSEL has been filed and an enquiry has been initiated," ICAI President Subodh Kumar Agrawal told reporters here.

However, he did not reveal the name of the complainant.

In the case of enquiry against FTIL, Agrawal said that as of now it has only sought information from various entities.

According to the ICAI president the inquiry would only involve any non-compliances on part of the chartered accountants related to the auditing regulations.

When asked about the timing of withdrawal of the audit reports, Agrawal said that it would also be looked into but added "before it (audit reports) was considered by the shareholders it was withdrawn".

The audited accounts were withdrawn a day before FTIL's annual shareholder meeting on September 25.

When asked about media reports on NSEL's auditor Mukesh P Shah and Co owner was a relative of FTIL Chairman and MD Jignesh Shah, ICAI president said that he had no information in that regard but as per norms an auditor cannot audit his relative's company.

Earlier this week, FTIL auditor Deloitte Haskins & Sells withdrew its audit report on the company saying the financial statements for 2012-13 financial year cannot be "relied upon" any "longer" in the wake of NSEL payment crisis.

According to sources, the withdrawal came as NSEL's auditor Mukesh P Shah & Co had also withdrawn the report.

NSEL is facing a crisis of settling Rs 5,600 crore dues to 148 members/brokers, representing 13,000 investor clients, after its trade was suspended on July 31 by government orders. 

PTI

Sebi revamps expert panel on disclosures, accounting standards

Mumbai: Sebi has reorganised its committee on disclosures and accounting standards that advises the market regulator on matters related to disclosure requirements and accounting practices for various market participants.

The Securities and Exchange Board of India (Sebi) had formed the 'Committee on Disclosures and Accounting Standards' in 2006 under the chairmanship of noted chartered accountant Y H Malegam.

The expert committee was mandated to suggest ways to Sebi for improving disclosure framework for listed companies and accounting practices of various market entities.

The 17-member panel is presently chaired by Tata Sons' Director-Finance Ishaat Hussain, while other members include NSE Managing Director & CEO Chitra Ramkrishna, HDFC AMC Managing Director Milind Barve, The Bombay Shareholders' Association's A K Bakliwal and IT firm Wipro's CFO and Executive Director Suresh Senapaty.

Moreover, the expert panel includes representatives from Sebi and the finance and corporate affairs ministries.

Other members are senior executives of Kotak Mahindra Capital Company, SBI Capital Markets, Jubilant Life Sciences, Mahindra & Mahindra and Deloitte Haskins and Sells, according to a Sebi notification.

Besides, International Management Institute Director Asish K Bhattacharyya, ICAI Council Member C A Pankaj Jain and K P Saidharan from the Comptroller & Auditor General of India are also part of the committee.

One of the major terms of reference of this committee is to advise Sebi on issues related to disclosure requirements in the offer documents, application forms, advertisements and other mode of mass communication by the issuers.

Besides, it also advises Sebi on issues related to the continuous disclosure requirements pertaining to listing of equity or debt of an issuer and on matters related to disclosure requirements of various market intermediaries.

The panel also has to advise Sebi on issues for addressing the operational and systemic risks, if any, in primary market.

The committee is further mandated to suggest ways that would ensure "smooth implementation of accounting standards, statements, guidance notes and studies evolved by the Institute of Chartered Accountants of India (ICAI) to the extent that it pertains to disclosures in the capital market documents and for disclosures related to intermediaries," among others

United Bank faces auditing, corporate governance probes

New Delhi: The crisis-hit United Bank of India, which has run into losses amid suspiciously high bad loans, now faces fresh probes for possible lapses related to auditing and corporate governance norms.

Capital market regulator SEBI has received complaints about possible violations to its corporate governance norms at the bank, while it may also look into potential lapses with regard to its other regulations including those about related party transactions and insider trading, sources said.

Besides, the Institute of Chartered Accountants of India (ICAI) is believed to be looking at the role of the bank's auditors, sources said, although there was no official word on these fresh probes.

UBI posted net loss of Rs 1,238 crore for the three months ended December 2013. Raising alarm, the lender's gross Non Performing Assets (NPAs) touched Rs 8,546 crore during the same period.

The amount of NPAs surged from just Rs 2,964 crore at the end of March last year.

Besides, there are apprehensions about the books of UBI amid fears that rising bad loans might have not been properly reported for quite sometime.

In the wake of rising concerns over the bank's financial health, its Chairman and Managing Director (CMD) Archana Bhargava quit in February. She opted for voluntary retirement on health grounds and her request was accepted by the Finance Ministry.

Bhargava had taken charge as CMD in April 2013, and her term was to end in February 2015.

An administrative enquiry is underway to find out why the lender's NPAs had been under-reported. 

Following a sharp surge in NPAs, the Reserve Bank of India has already ordered a forensic audit by a firm, which has submitted its report.

The government, which holds 88 percent stake in the bank, had provided Rs 700 crore as capital in this financial year, ending March 31.

Besides, UBI plans to raise an additional Rs 1,000 crore as capital.

Procedure for verification of answer books of Chartered Accountants-Final, PCE, IPCE/ATE-Units, Examinations-May 2011 and CPT-June 2011 - (25-07-2011) Read more at: http://www.caclubindia.com/forum/new-update-at-icai-website-157566.asp#.Uz_L06iSyTk

Candidates who are desirous of applying for verification of the marks obtained by them in the May 2011 exams are requested to note and follow the procedure detailed below The application for verification of marks must be in the handwriting of the candidate. If the candidate had appeared in Hindi medium, his/her application should be in Hindi. Typewritten applications will not be entertained. There is no standard format as such for such application. However, the application should clearly indicate the following details and should be duly signed by the candidate. Examination appeared-such as Final /PCE/IPCE/CPT Roll no. Paper(s)/subjects to be verified Student Registration No Address for communication Candidate should not write their e-mail IDs or mobile number or landline numbers in such verification requests. There is no provision for re-valuation of papers For Final, PCE, IPCE/ATE, IPCE/ATE-units: The verification fee is Rs 100/- per paper subject to a maximum of Rs 400/- for all the papers of a group/both groups. For CPT: The verification fee is Rs 200/- The fees is payable by way of a demand draft drawn in favour of “The Secretary, The Institute of Chartered Accountants of India” payable at New Delhi. Though it will be our Endeavour to inform the outcome of verification in respect of May 2011 exams, as sought by the candidates latest by 20th October 2011, yet the same cannot be assured, due to time consuming processes involved. However, all such candidates who do not receive the response latest by 20th October 2011, are advised to send an email to Additional Secretary (Examination) at exam @ icai.org for necessary action. Candidates are advised to submit their examination form for the forthcoming examination, if they so wish, pending receipt of the outcome of verification of answer books of the Nov. 2010 exams. The application along with the demand draft should be sent at any one of the following addresses so as to reach us within a period of one month from the date of the declaration of results. The Additional Secretary (Exams) The Institute of chartered Accountants of India ICAI Bhawan Indraprastha Marg New Delhi 110 002

Read more at: http://www.caclubindia.com/forum/new-update-at-icai-website-157566.asp#.Uz_L06iSyTk