2016 (9) TMI 1602

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....y Mr. P.S.Bindra, learned counsel for the petitioner has drawn this Court's attention to the gist of the Forensic Audit Report prepared by the Chartered Accountants of IFCI. The conclusions in the gist report are reproduced hereinbelow:- "Following conclusions can be drawn from the documents submitted by the respondents; 1. All the respondents have not submitted their Income Tax & Wealth Tax returns. The respondents have only submitted the acknowledgement of the Income Tax & Wealth Tax returns when the courts had asked to submit the complete set of returns to IFCI. In the absence of complete returns form, we are not able to verify the source of Income declared by the respondents which is a useful indication for ascertaining the div....

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....s been deposited in cash. No explanation is available from the documents submitted by CPL. Further, huge cash has been withdrawn from the account of CPL in cash. Both these entries are dubious in nature and are an indication of diversion of funds from the accounts of CPL to the account of promoter. (b) An amount of Rs. 39,54,50,479.00 has been deposited in the account of the promoter from the account of the approved vendors of CPL. This is an indication of possible amount received back by the promoters from the vendors who have been awarded a contract in CPL. 5. In the scrutiny of the financial statements of the related concern, interest has been found in the various companies in form of outstanding loans, deposits etc. IFCI mus....

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.... An amount of Rs. 35,83,62,179 has been withdrawn from the account marked as payment of salary. No substantive details is available whether such amount has been actually paid off to the employees and in the absence of same, it is an indication of diversion of funds. Our report is governed by the provisions of SRS-4400, "Engagement to perform agreed upon procedures regarding financial information‟ issued by the Institute of Chartered Accountants of India ("ICAI‟). As per SRS-4400, our duty has been limited to draw out the facts as far as possible and feasible for the benefit of the client. Drawing out conclusions has been considered in the preview of the client. We have tried to our best to come out with the conclusions wherev....