How the examination of Accounts are carried out by Registrar of Companies, I have also asked 18 years back, the reply in person was that scrutiny is carried out for each company accounts!!!!!!!!!!!!!!, can be verified from the attached accounts. For last more than 18 years , it is on their record complaint and every thing a continuous process from my side ........No action by any body and any offices of M C A !!!!!!!!!!!!!!!!!!!!! Accounts are attached for information .............. Copy of this e mail also sent to Registrar of Companies.Gujarat, Regional Director, MCA for information. How and what accounts they verify , you know.............. Even now defending the Company , nothing wrong and I have proved !!!!!!!!!!1
EXAMINATION OF BALANCE SHEETS BY ROCs
GENERAL CIRCULAR NO. 37/2012, DATED 6-11-2012
It is considered expedient to issue the following circular for general information.
2. Every company registered under the provisions of the Companies Act, 1956 is required to file its balance sheet annually with the office of the Registrar of Companies within whose jurisdiction the registered office of the company is located. Presently, there are more than 8 lakh companies registered with various offices of the RoCs located all over the country. Balance sheets of all the companies who carry out the filing are available for public inspection on the portal of this Ministry (http://www.mca.gov.in). The underlying idea behind the filing of balance sheets and other documents which require similar filings is to publicly disclose information which reflects various aspects of the working of a company so that the company's public accountability is maintained. It is neither intended nor feasible for the Registrars to scrutinize or verify the contents of filing except on a random basis. Companies and its Directors and officials are liable to be penalized for any incorrect, false or misleading information that such filing disclose. In the following cases, however, the Registrars routinely scrutinize balance sheets:
(i) of companies against whom there are complaints;
(ii) of companies which have raised money from the public through public issue of shares/debentures etc.;
(iii) in cases where the auditors have qualified their reports.
(iv) Default in payment of matured deposits and debentures.
(v) References received from other regulatory authorities pointing out violations/irregularities calling for action under the Companies Act, 1956.
3. After the scrutiny suitable steps are initiated wherever necessary to obtain explanation and clarification and to institute inspections, investigations and prosecutions wherever warranted.
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FOR IMMEDIATE RELEASE
Contact:
Laura Wilker
Head of Communications
+1212-471-8707
IPSASB PUBLISHES PUBLIC SECTOR CONCEPTUAL FRAMEWORK EXPOSURE DRAFTS
(New York, November 7, 2012) – The International Public Sector Accounting Standards Board (IPSASB) today released for comment two Exposure Drafts related to its project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities. The Conceptual Framework continues to be the IPSASB's key strategic objective and is of fundamental importance to the future of global public sector standard setting.
Conceptual Framework Exposure Draft (ED) 2, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Elements and Recognition in Financial Statements, refines the issues highlighted in the Consultation Paper published in 2010 and reflects the IPSASB's consideration of the responses to that Consultation Paper. Elements are the building blocks from which the financial statements are constructed.
The ED proposes definitions of eight elements: assets, liabilities, revenue, expenses, deferred inflows, deferred outflows, ownership contributions, and ownership distributions. It also proposes deferred inflows and deferred outflows as elements in order to distinguish the flows related to the reporting period from flows which relate to another reporting period. Deferred inflows and deferred outflows apply to flows that are provided for use in one or more specified reporting periods and are restricted to non-exchange transactions. The ED also considers how to deal with the uncertainty that can arise over the existence and measurement of elements.
Conceptual Framework Exposure Draft (ED) 3, Measurement of Assets and Liabilities in Financial Statements, identifies the measurement concepts that should guide the IPSASB in the selection of measurement bases for International Public Sector Accounting Standards. The ED stresses the importance of selecting measurement bases that meet the objectives of financial reporting-decision making and accountability. Many assets in the public sector are held for their operational capacity and, therefore, entry values that reflect the cost of purchase are likely to be adopted in many situations.
For liabilities that arise from obligations to provide goods and services to citizens and other eligible beneficiaries, the appropriate measurement basis will often be the cost of fulfillment—that is to say, the current cost of meeting the obligations represented by the liability.
"The Conceptual Framework continues to be IPSASB's main priority and, when finalized, will underpin IPSASB's standard-setting activities for many years to come," said IPSASB Chair Andreas Bergmann. "These two Exposure Drafts propose concepts that deal with key aspects of the financial statements—the elements and the appropriate measurement bases. We strongly encourage all stakeholders to submit comments on the two Exposure Drafts."
How to Comment
To access the Exposure Drafts and the At-a-Glance documents, which provide summaries of the two Exposure Drafts, or to submit a comment, visit the IPSASB website. Comments on the Exposure Drafts are requested by April 30, 2013. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these documents to their members and employees.
About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the United Nations, and the governments of Canada, China, New Zealand, and Switzerland.
About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.
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CAG IS ALWAYS INDEPENDENT!!!!!!!!
CAG for more independence to regulators
A file photo of Comptroller and Auditor General of India Vinod Rai.
New Delhi, Nov 7:
The Government would do very well in making regulators independent, Comptroller and Auditor General of India Vinod Rai has said.
An element of transparency should be also introduced in the functioning of corporates, Rai said at the World Economic Forum on India meeting at Gurgaon on Wednesday.
"Which body should ensure this transparency, I really can't say. There are any number of regulators who are supposed to be doing this," he said.
Rai wondered why the introduction of probity and transparency had to be left only to the Government.
"This transparency can be brought about by corporates themselves."
He also wanted citizen groups to play an active role in ensuring transparency in the functioning of corporates.
Representing the corporate sector, S. Gopalakrishnan, Vice-Chairman, Infosys Technologies, said there were already several forms of checks in the functioning of corporates including audit committees etc.
There were also several regulators who oversee corporates, he said, adding that regulators needed to be active.
On Government schemes, Rai maintained that the architecture of several Government programmes was very good, but unfortunately there were lacunae in their implementation.
"There are loopholes that are not plugged. If only there was a mid-course correction that Government or policy implementers could take, leakages can possibly be addressed," he said.
Rai also said that aversion to transparency was coming down in Government.
He was confident that Indian economic growth would soon be on an upswing and that the recent dip was a temporary phase.
Later, Rai declined to take questions from media on any of the CAG's auditees, including Reliance Industries Ltd.
Corruption, and our political culture
The way forward would be to push politics back to a system where the party, rather than families, control political funds.
Targeting a few politicians cannot achieve much in a battle against corruption. — V.V. Krishnan
It is too early to predict the course of the investigation into Robert Vadra's deals with DLF. It is quite possible that there is nothing illegal in the entire set of transactions. But even if no law has been broken, it does reflect a tendency for business houses to make deals with members of political families.
And once we accept the idea that there can be lucrative economic connections between political families and business families, we come to the question of where do we draw the line. At what point do such business deals become corruption?
Corruption and illegality
The current preoccupations of the anti-corruption movement suggest that this line is to be drawn entirely in terms of what is legal. In this perspective, corruption has been reduced to illegality. As long as what is done is within the confines of the law there can be nothing wrong with it.
This complete identification of corruption with illegality would work as long as there is no room for discretion in public policy. The role of the government would then be to do no more than mechanically implement whatever norms are laid down. Any deviance from this norm would be illegal and hence a case of corruption.
Such a legalistic approach does not, however, remove all scope for corruption. It is quite possible to define and interpret the rules in such a way that it benefits a particular business house.
Indeed, it could be argued that the major benefit that business houses seek is in defining the norms rather than in terms of breaking them. Such an uneven playing field would be quite unfair to other players. There is also no guarantee that policies that are laid down to suit a particular business house will be in the interests of the country.
The preoccupation with the illegal thus allows for the institutionalisation of unfair practices. Since both politics and business in India are dominated by families, it is not difficult for a business house to build goodwill and influence through family connections. Carefully worked out business deals with non-political members of political families can be a legal form of selling the discretionary power of politicians.
Extreme moral position
In theory, the simple solution to this problem is to ensure that no immediate member of a political family has any deals with any business house whatsoever.
This would rule out an entire field of economic activity for the non-political members of the political family. This could be treated as the sacrifice a political family has to make in its service of the people.
Such a morally strong, even extreme, position is, however, not quite practical, particularly in India. Among the few Indian politicians who tried to follow this norm was Mahatma Gandhi. He refused to use his influence to help his eldest son, Harilal, gain access to a foreign education. In the process he paid a huge price in terms of his relations with his first born.
It is possible to debate the ethical value of Gandhi's decision to put his political morality ahead of his family, but for most present-day Indians this debate is a non-starter.
Anyone who has seen the audience reaction to plays on Gandhi's relationship with Harilal would be clear that Indians today clearly believe Gandhi was wrong.
Once we accept the notion that the family comes first, the idea of preventing any connection between the non-political members of political families and business houses falls by the wayside. The political class would prefer to keep the actions of the non-political members of political families outside the public sphere.
Funds and family
Digvijay Singh, with his characteristic candour, found fault with the BJP for breaking the unwritten political code of not targeting the non-political members of their opponents' families.
Digvijay Singh's norm could be accepted if we were certain that the non-political members had no influence at all on the political actions of other members of the family. That level of probity would be difficult for the most honourable families to achieve at the best of times. And this has been made virtually impossible in India with the family effectively replacing the political party as the most effective unit of politics.
Funds controlled by the party treasurer have been replaced, with the possible exception of the Communist Parties, by funds controlled by the family. And the apparently non-political members of these families are often in the best position to manage these funds.
Breaking the unhealthy nexus between business houses and political families thus lies at the heart of the battle against corruption.
The trouble is that it is much more difficult to do than putting a few politicians, who are inept enough to get caught doing the illegal, into jail. But the way forward would be to try and push politics back to a system where the party controls political funds.
While individual corrupt politicians could still be influenced through their families, it would at least be possible for upright politicians to have access to political funds. Once that massive goal is achieved, it may well be a relatively less demanding task to introduce transparency in the way those funds are collected and used.
(The author is Professor, School of Social Science, National Institute of Advanced Studies, Bangalore.)
Can Obama beat recession?
Barack Obama remains in White House for four more years. Indeed, he is a brave man, considering the shape of the economy. The US is sitting on a staggering $16-trillion government debt. The US, it would seem, must willy nilly cut spending from 2013 and also raise taxes. A sure recipe for recession.
Can Obama not raise taxes and also put off spending cuts? He can but must get legislature support. This and the Fed keeping interest rates low as also agreeing to keep buying $40 billion worth of mortgage-backed securities (MBS) every month, may keep the economy ticking at the 1.5 per cent it has been doing.
Amid the gloom, the silver linings for the US economy have been the dip in the jobless rate and the rise of the dollar the last two years. The unemployment rate is down to 7.9 per cent, with jobs being added almost every month. And, since early 2011, the dollar has risen 7 per cent. But can Obama keep this momentum?
What's in store for India from the Obama win? The dollar should strengthen which won't augur too well for India and we must keep our fingers crossed that Obama does not act on the outsourcing rhetoric. That would be an uppercut and a punch in the solar plexus for the IT industry. Happily, despite the mild friction on reforms — after Obama said India was not moving fast enough on them —the trade ties between India and the US have strengthened, with the total merchandise trade hovering around $58 billion in 2011, making the US India's No 3 trading partner.
It should also be a win-win on the diplomatic front. Generally fed up with Pakistan's intransigence on dealing with terror, Obama and his team should gravitate closer to India. Washington may also find it useful to have New Delhi on its team as it takes on the task of managing the rising Beijing.
(This article was published on November 7, 2012)
Govt gets it wrong on CRR
The Finance Ministry should not press the RBI to pay interest on CRR balances. Banks do not want to miss any opportunity to increase their spread.
November 7, 2012:
The Finance Ministry (referred to as 'Ministry' hereafter), according to media reports, wants the Reserve Bank of India (RBI) to pay interest on the balances of commercial banks held under the Cash Reserve Ratio (CRR). The RBI is reported to have said that it would then run into a loss. In this connection, the Ministry wants to scrutinise its balance sheet to find out whether the claim is justified. An uncharitable view taken by the media is that the Ministry is getting back at the Bank in response to the latter not agreeing to a reduction in the interest rates in the recent policy review.
Interest on CRR balances
It is surprising that the government wants the RBI to pay interest on the balances under CRR, knowing fully well that it would adversely affect the transfer of net income from the central bank to it at the end of the year (Rs 16,000 crore last year). So much for fiscal consolidation!
The reasoning that it would help in reducing the lending rates of banks is not convincing. In a way, the RBI's transfer of its surplus income assists the government in bearing the interest rate subvention that it is providing to selected sectors.
The question of interest payment was debated for quite some time. The RBI pointed out that it diluted its tightening monetary policy measures. The law was amended to abolish it after giving considerable thought.
I have argued that CRR is not a repressive tax, as claimed by the Western economists but a fee (Nothing for banks to gripe about, Business Line, September 11).The banking system benefits from the licence it gets from the central bank to carry on business, because it mints money through the working of the multiplier.
It is a form of seigniorage enjoyed by the system similar to what the government gets through the printing of currency notes. Hence, the question of paying interest on CRR balances does not arise, as the system is amply rewarded by the power to create money. Obviously, in such matters while the RBI looks at the system, individual banks think in terms of their bottomline.
Autonomy question
During the time when I. G. Patel was Governor (December 1, 1977 to September 15, 1982) there was a reference from the Ministry forwarding a parliamentary question (if I remember well) suggesting that the Annual Report of the RBI might be submitted to Parliament instead of Government.
At the instance of the Secretary's Department, I examined the issue from the broader point of view of central bank autonomy, taking into account the position obtaining in other countries.
I pointed out that even in the US, autonomy had been eroded in that the Chairman of the Fed had to appear before a Committee of the Congress to justify monetary policy. What was more interesting was that the US Fed had already come to be subjected to public audit with the exemption of its open market operations.
The RBI should trace and study the relative note in its archives with the remarks of the Governor.
It should be prepared for the day when some smart kid in the North Block suggests that it, too, be audited by the Comptroller and Auditor General (CAG) like others in the public sector.
It is the only government body in the country now that has its accounts audited by private auditors and not by CAG.
The position in US
It may indeed be surprising for readers to know that for a long time in the US the government wanted the central bank to pay interest to banks on reserves, but the Fed resisted it saying that it would affect the transfer of surplus income to the Treasury. The law was silent on the matter.
In the wake of the Lehman crisis the Fed agreed to pay interest at 0.25 per cent to help banks. However, it has not helped in raising bank lending.
Banks' total (seasonally adjusted) cash reserves in the Fed amounted to $1.5 trillion on October 31, of which 93 per cent was excess. Banks' borrowings from the Fed were a minuscule $1.4 billion.
Besides the reluctance to lend, either due to risk aversion or lack of demand in an atmosphere of pessimism on the future of the economy, banks find the interest of 0.25 per cent on total balances with the Fed more attractive than investment in Treasury Bills (TBs).
The yields on TBs of 4 weeks, 13 weeks, 26 weeks and 52 weeks were 0.06 per cent, 0.09 per cent, 0.15 per cent and 0.17 per cent, respectively, as on November 1, 2012.
During October 2012, the Federal Funds Rate ranged between 0.06 per cent and 0.5 per cent, providing arbitrage opportunities at the lower levels.
The solution may be the non-payment of interest on excess reserves. The Fed Chairman once commented on the possibility of the interest rate on reserves becoming another monetary instrument!
Whether the payment of interest on CRR balances will help in reducing the lending rates or not is a moot question at a time when the non-performing loans and restructured assets are on the rise, calling for increased provisioning.
The banks look at every issue from the point of view of the spread and would like to avail of every opportunity to increase it. There is always the moral hazard of good borrowers paying for the delinquency of the bad ones.
(The author is a Mumbai-based economic consultant. Prima facie nexus in Aircel-Maxis deal involving Maran: Apex court
Former telecom minister, Dayanidhi Maran
New Delhi, Nov 7:
The Supreme Court today said the CBI probe into the allegations in Aircel-Maxis deal involving former telecom minister Dayanidhi Maran and a Malaysian business tycoon "prima facie indicates a nexus".
A Bench of justices G S Singhvi and K S Radhakrishnan, which perused two reports filed in a sealed cover by the CBI, said, "The allegations levelled and investigations prima facie indicates a nexus."
The CBI told the court that it has completed the domestic investigations into the deal but the overseas probe was being delayed due to the influence of the firm's owner in Malaysia who is "powerful politically".
"We have completed the domestic probe and have to complete the investigation about the deal in Malaysia and Mauritius. Letters Rogatory have been sent to those countries.
"The gentleman in Malaysia who is involved in it is economically powerful and he is also powerful politically," the agency's counsel K K Venugopal submitted without taking any names.
The submission was made by Venugopal, who was reading the relevant portions of CBI's fresh progress report on its investigation into the 2G spectrum scam.
Maran has been accused of "forcing" Chennai-based telecom promoter C Sivasankaran to sell the stake in Aircel to a Malaysian firm Maxis Group in 2006 owned by Kuala Lumpur-based business tycoon T Ananda Krishnan.
The agency submitted that overseas probe was important to track the money trail as the funds for the deal had come through Mauritius.
"We have to go into the source of fund. Information is that the money came through Mauritius," the CBI counsel said adding that "we want to show the link on the source of money to show the quid-pro-quo involved in the deal."
When the Bench wanted to know "why there was a delay in probe in Malaysia and Mauritius," the CBI said those countries are repeatedly seeking clarification on one or the other issues.
The Bench also said if there was any effort by powerful or influential or CBI was working under any influence then "this must be stopped".
'FDI will improve competitiveness'
November 7, 2012:
FICCI on Wednesday welcomed the opening up of FDI in multi-brand retail.
According to R.V. Kanoria, President, FICCI, the decision would help improve competitiveness of Indian players and benefit the retail sector.
Fear that small traders and mom-and-pop stores would go out of business once foreign players come in is misplaced. "On the other hand we might see the small traders co-exist with big format retail. Traders need to be convinced that they will not go out of business," he said.
According to Kanoria, FICCI will take-up discussions on FDI in retail at an industry meeting scheduled on November 17 in Delhi.
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