ICAI looking at alleged accounting irregularities at Tata companies

This, in the wake of concerns raised by ousted chairman Cyrus Mistry

Chartered accountants' apex body ICAI on Tuesday said it is looking at alleged accounting irregularities at some Tata group companies in the wake of concerns raised by ousted chairman Cyrus Mistry.

Besides, the Institute of Chartered Accountants of India (ICAI) is examining the accounting issues related to the United Spirits Ltd (USL).

"We have asked the Financial Reporting Review Board (FRRB) to look at accounting issues arising out of that and examine whether there are any irregularities," ICAI President Nilesh S Vikamsey said.

Vikamsey, who was elected as President on February 12, was responding to a query on whether the institute is looking at alleged irregularities at some Tata group companies.

"There are many qualitative issues there, lot of underlying documents and papers which the members would have relied upon that is being examined," he said.

Coming under the ICAI Council, FRRB reviews the compliance of entities with various accounting and auditing standards.

When asked whether the institute is having a preliminary look at the issues, he replied in the affirmative.

"Predominantly I would say in the Cyrus Mistry letter whatever the accounting related matters have been commented upon, that is being looked at," Vikamsey said at a press meet here.

After being sacked as chairman of Tata Sons in October last year, Mistry had written a letter to the board and regulators, including Sebi, raising various corporate governance issues and alleged irregularities at some group entities.

On accounting issues related to United Spirits Ltd (USL), he said that are also being looked into.

Last month, the Securities and Exchange Board of India (Sebi) barred Vijay Mallya and six former officials of USL from securities markets in a case related to illegal fund diversions while probe is on into the role of auditors and change of control at the company.

Vikamsey said the institute is coordinating with Sebi on various matters.