The Institute of Chartered Accountants of India (ICAI) has dismissed the Crisil report of July 2001 that highlighted overstatement of profits by blue chip companies and suggested that corporates were following the letter of the law but not its spirit.
The institute has told the department of company affairs that there is nothing wrong with the accounts of these companies.
Ashok Chandak, President, ICAI told Business Standard that the Accounting Standards Board which has representatives from the Reserve Bank of India and the Securities and Exchange Board of India had taken a decision that the companies had followed all norms.
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The Crisil report had stated that the profits of 226 companies as calculated by it were in variance with the profits reported by the companies in 2000-01. The report, however, said there was no violation of accounting norms.
The DCA had subsequently asked ICAI to give its opinion on the Crisil report. The institute had convened a special meeting of its accounting standards board and discussed the Crisil report threadbare.
Chandak said,