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Kamal Narang

Mr Prem Chand Gupta, Union Minister for Corporate Affairs (fiel photo). —

Our Bureau

New Delhi, Jan. 8 The Ministry for Corporate Affairs (MCA) has ordered inspection of books of accounts of eight Satyam Group companies under the provisions of the Companies Act and asked the Institute of Chartered Accountants of India (ICAI) to take action against the auditors as per the norms.

This was stated by the Minister for Corporate Affairs, Mr Prem Chand Gupta, here on Thursday.

The eight Satyam Group companies are Maytas Properties Ltd, Maytas Infrastructure Ltd, Satyam BPO Ltd, Nipuna Services Ltd, Knowledge Dynamics Pvt Ltd, Nitor Global Solutions Ltd, CA System ASP Pvt Ltd, and Satyam Venture Engineering Services Pvt Ltd.

“Inspection has been ordered to examine violations under Section 209A of the Companies Act,” the Minister said.

As regards initiating action against the auditors, the Ministry has been informed by the ICAI that the Financial Reporting Review Board of the Institute has asked for the working document within three days from the auditors, Mr Gupta said.

Stating that he has already had a meeting with the senior officials of the Ministries of Finance, Information Technology, Law & Justice, and representative of Securities & Exchange Board of India (SEBI), the Minister said, “A team of SEBI and the Registrar of Companies is already working together in Hyderabad. The Secretary, Corporate Affairs, has also spoken to the Chief Secretary of Andhra Pradesh, who has said that the State Government would extend all help required.”

Mr Gupta maintained that Satyam was a one-off case. “The effort is to see that all stakeholders – international investors, customers of Satyam, 53,000 employees, are protected and action taken against those who are guilty,” he added.

Asked whether the Government would be considering appointing a Government nominee on the Board of the company, the Minister said, “I would not like to comment on this. However, the Companies Act does provide for it.”

To a specific query whether a criminal proceeding can be initiated against erring Satyam officials under the Companies Act, the Minister said that it was possible.

The Minister also did not rule out the possibility of revisiting the provisions of the recently introduced new Company Law in the wake of the recent incident. “This is a larger issue, there is always scope for improvement,” he said.

On whether the Prime Minister’s office has sought any details, Mr Gupta said, “all ministries of the Government are part of PMO and are working in close co-ordination”.

More Stories on : Regulatory Bodies & Rulings | Corporate Governance | Auditing | Satyam Computer Services Ltd

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