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: TDS :: articles on VAT and GST in India :: due date for vat payment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: empanelment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: cpt :: ACCOUNTING STANDARD :: VAT Audit
 
 
« News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Satyam Effect: Alerts system to check frauds
September, 10th 2009

In a bid to crack down on closely-guarded corporate frauds in early stages, the ministry of corporate affairs has kick-started its early warning system on company frauds, with initially about 50 companies coming under the governments radar.

The early warning system, which has been set up through the use of a sophisticated computer network and involves the functioning of multiple regulators including SEBI and various departments under the corporate affairs ministry, has been started off on a pilot project basis, before being extended to cover all companies operating in the country.

The initiative, which was mulled early last year, gained speed after after the emergence of the multi-crore financial fraud in the erstwhile Satyam Computer Services. The scam went untraced for seven years before its promoter B Ramalinga Raju decided to confess of wrongdoings in the company.

Senior officials in the ministry said that the initial list of 50 companies has been prepared in consultation with other regulators including the SEBI, and includes companies which are presently under some form of scrutiny at the governments end.

The early warning system involves active participation of capital markets regulator SEBI, and will keep round-the-clock watch on activities of companies. The aim is to crack the whip on any suspicious corporate activity as and when it is found, thus reducing the extent of damage it may cause if it is allowed to reach an uncontrollable level.

Once it tracks any suspected malfunctioning, the government will attempt to rectify the malaise through regulatory action.

We have worked out a model of the early warning system. We are already running a pilot project... with 50 companies, corporate affairs minister Salman Khurshid said, while declining to name the companies which have initially come under the cover of the new system.

The experience gained during the operation of the pilot project will be used to fine tune the system and give it a final shape, Mr Khurshid said. The pilot project aims at finding out the limits up to which the government can seek information from companies that have suspected area of operation.

With the new system in place, the government will look for unusual developments in a companys financial operations and decision making process by scrutinising quarterly results of companies, their public announcements, filings with stock exchanges, tax returns and media reports. Even as the ministry mulled the setting up of an early warning system on corporate frauds last year, the project gained speed.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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