Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: due date for vat payment
 
 
« News Headlines »
 Want To File Revised Income Tax Return? Or File Belated Return? 5 Things To Know
 Deadline for filing revised or belated income tax return for past two assessment years is March 31
 Quarterly GST returns filing may be extended to all companies
 How many times one can revise tax returns?
 Income tax exemption for FY19
 How will the new provisions really work?
 How to save income tax? Best tips for young earners
 Forgot to verify your income tax return? Here's help
 Notification of Government e-Marketplace (GeM) under section 138 of the Income-tax Act
 Income tax returns can be filed even if you missed deadline
 What is the difference between a tax return and a tax refund?

Satyam accounts restatement is Rs 50-cr windfall for audit
July, 31st 2010

Mahindra Satyam may end up paying a huge fee for restatement of its book of accounts that were allegedly fudged by its former Chairman Mr B. Ramalinga Raju.

Indications are that the Hyderabad-based company will shell out close to Rs 60 crore by September when the accounts are expected to be restated.

If you include the forensic accounting and all other payments the company has to make for the restatement, the outgo will easily be north of Rs 50 crore'. With every round of delay, the costs are going up, a top official in the know told Business Line.

Days after Mr Raju confessed to fudging the Satyam accounts, a Government-nominated board had appointed auditing firms KPMG and Deloitte to help clear the mess.

Audit issues

Due to a host of reasons ranging from the complexity of the fraud to the unavailability of key documents, the restatement has fallen behind schedule three times already with the concomitant affect of pushing up the overall costs.

The company's outgo goes up given that most audit firms charge on a man-hour basis, sources said.

Mr Vineet Nayyar, Chairman of Mahindra Satyam, referred to this at a recent press conference, when he said that the Satyam accounts restatement is costing the company a fortune. However, he did not provide further details

A spokesperson for KPMG said, We do not comment on client matters. His counterpart at Deloitte said it was now the statutory auditor for the Mahindra Satyam accounts and no longer associated with the process of account restatement.

So, how do industry watchers view this development?

If the company is paying over Rs 50 crore for restating its accounts, just imagine what could potentially be the size of the fraud itself. I think that it is detrimental to shareholder interests, Mr Uttam Prakash Agarwal, former President of the Institute of Chartered Accountants of India, said.

The positive part, according to him, is that it sends a message to the corporate world that cost of investing in compliance cannot be substituted with anything else

In all fairness to the audit firms, the Satyam challenge was something unparallel in accounting frauds. During the course of the process, the two accounting firms had dredged almost two terabytes of data from laptops and personal computers at Satyam. Since this information is much more than what could have been warehoused anywhere in India, it was moved to the UK till lab facilities could be created here, a recent news report said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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