ICWAI accounts raise row

ICWAI accounts raise row
ENS ECONOMIC BUREAU

CALCUTTA, NOV 21: The Institute of Cost & Works Accountants of India, an autonomous body under the department of company affairs, is under fire for not maintaining its accounts properly. A member of the institute has served a legal notice to the DCA secretary PL Sanjiv Reddy, alleging gross malpractice in the adoption and maintainance of accounts by the ICWAI and warning of legal action if the DCA does not act.

The institute’s accounts for the year to March 31, 2000, have been qualified by the auditors for not following generally accepted accouting practices. The auditors, Gupta & Co, have reserved comment on an expenditure of Rs 4.36 lakh included under international conference and meetings on foreign travel, for which the institute council has not taken the prior approval of the government as required by the rules.

Meanwhile, legal firm King & Partridge, which served the notice dated November 16, 2000, on behalf of ICWAI member KL Krishnamurthy, alleged that DCA has with it enough documents, complaints and representations highlighting illegal, wrongful and malafide acts on the part of a group of council members.

The notice pointed out that the council at its meetings on May 14 and May 15, 2000, considered the final accounts for the year to March 31, 2000, and forwarded it to the auditors.

The auditors signed the report on June 21, 2000, in line with the rules a month before the date of the annual meeting which was held on July 21, 2000.