ICAI has asked chartered accountants to help the process of scrutinising the balance sheet of around 9 lakh registered companies.
As the ministry of corporate affairs (MCA) gears up for the process of scrutinising the balance sheet of around 9 lakh registered companies in the country, the Institute of Chartered Accountants of India (ICAI) has asked chartered accountants to volunteer for this.
“We have put this up on our website and have asked our chartered accountants who wish to render their services in this regard to contact us,” said Uttam Prakash Agarwal, president, ICAI. With the Registrar of Companies (RoC) finding it difficult to conduct a detailed examination of accounts of the companies, the corporate affairs ministry has decided to outsource the work of scrutinising the accounts of both listed and unlisted companies also to cost & work accountants and company secretaries.
“The government’s decision to scrutinise the balance sheet of the companies is a very good system as there would be double-verification of the company’s accounts, which would help in detection of corporate frauds,” Agarwal told FE. The government decision of outsourcing this work of scrutinising the companies accounts would be in the interest of the chartered accountants as this would mean more CA services being used and generation of more employment, Agarwal added. The registrar of a company has two functions registry function and regulatory function. The regulatory function involves keeping a check on the companies and making sure that they are not violating the Companies Act like if a company fails to file its annual returns to the RoC then the latter has the regulatory authority to issue them a notice and file a case against them in the local court. An MCA official told FE, “At present, there are 20 RoCs all across India and they have to face the problem of work overload since there is no standardised operating procedure and optimal manpower utilisation. Besides this, a common problem that is often faced in case of different RoCs is that many companies end up having the same name. Outsourcing would make the work easier for the government”.
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