COMPANY LAW
| RoC seeks auditor comments on Unitech balance sheet scrutiny Mon, 12 Mar 2012 00:26:17 +0530 |
| Business standard Economy Policy News The Registrar of Companies (RoC) is believed to have sought clarifications from the auditors of Unitech Ltd, following a technical scrutiny of the realty firm's balance sheet for the financial year 2008-09. As per the directions of the ministry of corporate affairs, the RoC conducted a technical scrutiny of the balance sheet for suspected violation of certain accounting standards. The company officials did not offer any comments, despite repeated attempts. However, sources said the balance sheet scrutiny prima facie showed violations to certain accounting standards, and Unitech's statutory auditors during 2008-09 have been asked to furnish their comments regarding the same. In a communication late last month, the RoC has informed the corporate affairs secretary about the matter, while providing a status report on other issues that came to light during the balance sheet scrutiny. The auditors had not disclosed certain non-compliance in the Auditor's Report, although the company was found not to have complied with certain accounting standards. In their status report, the RoC has told the ministry that matter has been taken up with the auditors and their reply was awaited. The scrutiny also showed that the gave loans to entities other than its subsidiaries in contravention of certain rules, but the RoC after re-examining the issue found that these entities were indeed subsidiaries of Unitech Ltd and therefore no rules were breached in this regard. The RoC also scrutinised Unitech's purchase of 50 per cent stake in an entity named Shivalik Ventures Ltd, but is believed to have found no violations on that front. In another matter concerning utilisation of funds worth Rs 200 crore raised as a loan from LIC, the ministry had asked RoC to find whether the money was utilised as per the loan agreement. The matter was referred to LIC late in January. |
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