Finance ministry mulls spl audit of Satyam accounts

Written by Corporate Bureau | New Delhi | Updated: May 30 2009, 05:26am hrs
The ministry of finance is planning to conduct a special audit of the accounts of the fraud-hit Satyam Computer to assess the companys tax liability. This comes after the income-tax authorities conducted special audits of the accounts of several firms including real estate major DLF, which got a tax notice of about Rs 400 crore.

A senior official in the finance ministry said, We have written to the ministry of corporate affairs to provide us the serious fraud investigations office (SFIO) report on Satyam Computer. The official added that a decision on this will be taken after the tax authorities go through the report of the SFIO, which they have requested from the corporate affairs ministry.

It is likely that the tax department might not conduct a special audit of the scam tainted Satyam as there have been prior investigations made in case of the beleaguered IT company by various government agencies. We may or may not order a special audit as that may further delay the tax assessment order. If our points are covered in the reports filed by other agencies, we don't need to conduct a special audit, said the official.

SFIO which was asked by the corporate affairs ministry to probe into Rs 7,800 Satyam fraud submitted a voluminous 14, 000 page report to the government. The investigation agency had levied around 32 charges against Satyam as the report mentioned the details of the violations of various provisions of the Companies Act and offences that were punishable under the Indian Penal Code (IPC).

The government had asked various government agencies to probe in the accounting fraud which included SFIO, Sebi, the Central Bureau of Investigation. The accounting regulator, ICAI had also appointed a disciplinary committee to look into the role of the auditors. While the SFIO has probed various aspects within the country, it has referred the matter related to fund transfers outside India to the enforcement directorate.