Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARDS :: due date for vat payment :: TDS :: articles on VAT and GST in India :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company
 
 
General »
 There will be no tax on farm or agriculture income
 RBI, Income Tax Acts to be amended for electoral bonds, Jaitley says
  Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 I-T zeroes in on Mumbai trader in first crackdown after demonetisation
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant
 Income Tax Department Failed To Unearth Black Money Despite Information
 Govt filing twice as many cases as private cos in Supreme Court
 Taxes under GST 'to increase a bit', says CBEC Chairman
 Google Tax could soon make even downloading apps on your smartphone a costly affair!
 Chances for a tax audit have rarely been this low
 CBDT to make separate wing to probe benami, black money

Citi fraud: Cos draw up fresh checklist
January, 06th 2011

The Citibank fraud, which has claimed the Delhi-based Hero Group as its biggest corporate victim, has thrown the treasury operations of cash-rich corporates into a tizzy. Chief financial officers (CFOs) of some of the biggest companies across sectors admitted that more checks and balances need to be put in place to prevent a repeat . With India Inc's treasury operations growing by leaps and bounds, greater vigilance is a must, CFOs felt. TOI spoke to a cross-section of corporate finance chiefs to come up with some ideas on additional checks that will help plug future frauds.

Top of the list of fresh filters is the need for frequent audits that report either to the CEO or the board's audit committee . "Independent audits of aconcurrent nature, reporting right to the top on a very frequent basis is one way of weeding out frauds," said V M Mohan , joint president of corporate finance, India Cements . Globally, multinational companies conduct frequent audits of different typeslocal internal, local external, headquarters internal and external , etcwhich are all handled by different sets of agencies. "That way, even if something is brewing, it will quickly show up on the radar," said Mohan. A surprise audit every once in a while over and above what's already in the pipeline is also a good idea, he said.

Beyond regular audits, CFOs also recommend direct and independent confirmations of all investments either by the audit teams or by the top management. "Treasury should directly write to the banks for a confirmation, may be once a month instead of once a year," said N Srinivasan , director finance, Murugappa Group.

If the CEO gets regular confirmations from the banks independent of the account manager and the review period is more frequent, chances are any irregularities will immediately pop up on the radar.

Trouble, he said, breaks out when companies overreach their risk appetite. "All manufacturing companies have strict investment guidelines on bank deposits, mutual funds and portfolio schemes and government bonds with detailed instructions on how much can be invested in what with what kinds of ratings," he said. So any product that offers nearly double the market rate of return should immediately attract attention. No rated paper can give such high returns and unrated paper is bad news.

Beyond pure risk prudence , the other fraud filter is to "segregate functions between the back office and front office in the treasury department ," said the CFO of a Mumbai-based automobilesto-IT conglomerate. If the back office does the confirmation for an investment made by the front office, the split in functions will act as a natural audit. Also "auditors should get confirmation from depository bodies and banks more frequently and the company should have sub-limits for its equity exposure" . A sub-limit offers a ceiling for what percentage of funds will go into higher-risk paper. The moment a particular investment crosses that limit, it will trigger a probe.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions