Press Information Bureau

Government of India

Ministry of Corporate Affairs

07-May-2012 17:39 IST

Furnishing of Misleading Information by MNAFs

According to the information furnished by the Institute of Chartered Accountants of India (ICAI) a High Power Committee (HPC) appointed by them for examining the operation of Multinational Network Accounting Firms (MNAFs) in India, has observed, that certain Indian CA firms and private limited companies associated with them pose as if, they are actually MAFs in India whereas to the ICAI/regulators, report themselves purely as Indian CA firms having no relationship with foreign entities.

Also, the HPC report contains an observation to that effect.

The Ministry has not received any recommendation from ICAI for taking action against any firm.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in the Rajya Sabha today in reply to a written question.

*****

ST/-

Misrepresentation by accounting firms: some portray multinational affiliation but report themselves as purely domestic, regulators informed. A High Power Committee observed that some Indian chartered accountancy firms and associated private companies present themselves as linked to multinational network accounting firms while reporting to regulators as purely domestic, and the professional institute has not recommended any action to the Ministry of Corporate Affairs, which reports receiving no such recommendation.