Chinese cos: CAs, CSs under lens now
Apex bodies ICAI and ICSI have together received 400 complaints for alleged violations of the Companies Law with respect to setting up of certain Chinese companies and their subsidiaries in India
New Delhi: Scores of Chartered Accountants (CAs), Company Secretaries (CS) and Cost Accountants are currently under the regulatory scanner for alleged violations of the Companies Law with respect to setting up of certain Chinese companies and their subsidiaries in India, according to officials. The apex bodies of Chartered Accountants and Company Secretaries, ICAI and ICSI, have together received around 400 complaints on the issue and necessary actions have been initiated.
The Institute of Cost Accountants of India has also initiated action against some of their members in the matter. The process started after communications were sent out to the institutes from the corporate affairs ministry, which is implementing the companies law. The ministry provided the institutes with the details of their respective members who are alleged to have committed violations, the officials said.
The government is looking at whether the Chinese companies and their subsidiaries have complied with all the regulations to come and do business in India, ICAI President Debashis Mitra said. Show cause notices have been issued to the members concerned by the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI), respectively. The Institute of Cost Accountants of India has also issued show cause notices to some of its members.
After ascertaining whether the members violated the companies law, appropriate disciplinary actions would be taken against them, the officials said. The members have been asked to explain about the alleged violations of companies law with respect to incorporation of various Chinese companies and their subsidiaries.
