News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Professional Updates »
 Restoration of Membership/COP of ICAI
 Appeal to contribute in ICAI Covid 19 Relief Fund
 IMPORTANT ANNOUNCEMENT - POSTPONEMENT OF CHARTERED ACCOUNTANT EXAMINATIONS, MAY 2020
 COVID-19: Important Announcement
 Lets' Stop COVID-19, Check out Today's Online Resources for you
 Covid-19: Important Announcement for Members
 Covid-19: Important Announcement for Members
 Preventive measures to be taken to contain the spread of Noveacl Coronavirus (COVID-19)
 Exemption from Completion of Management and Communication Skills Course (MCS Course) & Advanced Information Technology Training (Adv.ITT) to appear in Final May 2020 Examination
 Exemption from Completion of Orientation Course (OC) and Information Technology Training (ITT) before admission in Practical Training on or before 30th April, 2020.
 Request for Information for comprehensive review of IFRS for SMEs Standard issued by the IASB for comments.

ICAI may quizz E&Y over Maytas evaluation
January, 15th 2009

As part of its investigation into the Satyam Computer case, the Institute of Chartered Accountants of India (ICAI) is likely to question Ernst & Young (E&Y) on the valuation exercise it undertook on the two Maytas companies.

An ICAI source told TOI that the institute would also look into the process used by E&Y to confer upon B Ramalinga Raju the `E&Y Entrepreneur of the year' award for 2007.

ICAI is already seeking explanation from Satyam's auditor, PricewaterhouseCooper (PwC), on Raju's self-proclaimed manipulation of Rs 7,000 crore.

"While PwC is being asked to explain the accounts, E&Y could also be questioned on its role,'' said the source.

When contacted, an E&Y spokesperson said: "While we are not aware of the actions by ICAI as suggested in your mail, should the institute seek any information, we would provide the same.''

Questions about Satyam's corporate governance practices were raised after the board of the company approved a proposal to acquire a 100% stake in Maytas Properties and 51% in Maytas Infra--both companies belonging to the promoter family.

The total outflow for both the acquisitions was estimated at US $1.6 billion, comprising $1.3 billion for Maytas Properties and $0.3 billion for Maytas Infra.

Following an investor uproar, the company decided to withdraw the proposal a day after it was announced.

If the deal had gone through, it would have depleted Satyam of its $1.1 billion surplus cash. This did not go down well with investors.

The lid on Satyam's fraudulent accounting blew off after Raju's confession in a letter early this week.

Soon after, ICAI came into the picture for a clean up act.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting