ICAI expresses concern over delay in preparation, finalisation and audit of government companies

The Institute of Chartered Accountants of India has expressed concern over the inordinate delay in preparation, finalisation and audit of the accounts of many government companies and other State-owned enterprises, which results in financial mismanagement deterring the Government from timely intervention and effective corrective action.

Mr Babu Abraham Kallivayalil, Chairman of the Southern India Regional Council of the ICAI, has called upon the State Government to take immediate steps to ensure time-bound statutory audit of PSU’s. As of now, the existing statute requires that the audited statements to be placed before the State Legislature within six months from the end of the financial year which is not at all adhered and grossly neglected, he said.

He pointed out that this aspect will be brought before the State Government in the 42 {+n} {+d} Southern Regional Conference of the ICAI to be held here on November 27 and 28. The theme of the conference is Jnana Marga — New Challenges, New Frontiers.

The Union Cabinet Ministers, Mr Pranab Mukherji, Mr A.K. Antony, Mr Vayalar Ravi, and the Minister of State for Agriculture, Prof K.V. Thomas, are expected to address the conference. Mr Amarjit Chopra, President, ICAI, will preside over the inaugural session, which will also be addressed by the Vice-President of ICAI, Mr G. Ramaswamy. The Chairman of the Central Board of Direct Taxes, Mr S.S.N. Murthy, will be the chief guest for the valedictory session on November 28.

According to Mr Kallivayalil, the regional conference would witness a participation of around 5,000 chartered accountants. The Southern India Regional Council has in its fold 34 branches spread over the States of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala besides Union Territory of Puducherry. The southern region has on its rolls 37,000 chartered accountants.