Financial ratios of companies such as debt to turnover, inventory to turnover, or loan to assets will soon come under closer government scrutiny through an automated system under the soon-to-be-launched portal MCA21 Version 3.0.
The central scrutiny centre being set up by the government will pull up companies if it detects any suspicious activity based on a list of parameters that are being finalised by the Ministry of Corporate Affairs (MCA), a senior official told Business Standard.
The mechanism will flag these indicators, designed around typical ratios, and issue a warning if there are lapses in information. L&T Infotech will operate the