ICAI body to review 200 balance sheets

The Financial Reporting Review Board (FRRB), a non standing committee of the Institute of Chartered Accountants of India (ICAI), will be reviewing financial statements of 200 companies over the next few weeks.

The FRRB has been set up to monitor and regulate the functioning of chartered accountants (CA) in the country under ICAI. Last year, FRRB had studied financial statements of 50 firms, of which 4 were found incoherent. FRRB had reported the issue to the ministry of company affairs.

"In last few years, the image of the profession has been tarnished due to a number of such cases. To avoid repetition, we are conducting the review of select balance sheets. Disciplinary action will be initiated against defaulting CAs or the concern ministry will be informed in case the company is found guilty. This year, we are taking up 200 balance sheets published on March 2004 for a review and try to find flaws if there are any," said Sunil Talati, chairman of FRRB.

The FRRB will not divulge the list of the companies taken for review, claiming that it is a very important and sensitive exercise to meet the legal obligations. The team of CAs will include only those who have an experience of over 15 years.

"We believe that we should respect the trust of the various government authorities and public at large in the profession. A team of 100 reviewers has already been appointed for the project to be kickstarted in the third week of March in Delhi. The reviewer will check whether the company has maintained its books as per the law," Talati said.