Owing to complaints about the high interest rates and penalty rates charged, gold loans by non-banking finance companies are to be monitored. Mr G. Ramaswamy, President, Institute of Chartered Accountants of India (ICAI), told Business Line that the institute has received several complaints of NBFCs charging high interest rates, penalty rates (in the case of deferred payments) and also their non-adherence to KYC norms.

“We may take it up with the appropriate authority and monitor these companies through reporting by auditors,” he said. The ICAI would soon conduct a pilot study on e-payments by banks, as directed by the Ministry of Finance, he said.

The Institute, which recently debarred two audit managers who audited Satyam accounts, will soon come out with internal audit standards — the first of their kind in the world — with the aim of avoiding such scams in the future. “The ICAI insists on the compulsory internal audit of big companies to avoid such scams,” said Mr Ramaswamy.

The Institute will also offer certificate courses in internal audit and an enterprises risk management course, which would ensure smooth implementation of these practices.

Rules have also been framed and a Bill is pending in Parliament on introducing limited liability partnerships (LLPs) in CA firms. “We can have multi-disciplinary partnership firms, which would provide more support to our members,” he pointed out. As a result, chartered accountants can form LLPs with lawyers, company secretaries, cost accountants, valuers, etc. The Bill is expected to be passed in this session of Parliament. Currently, the institute has 1.83 lakh auditor-members.

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