Financial Daily from THE HINDU group of publications
Tuesday, Aug 20, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Home Page - Accounting Standards
Money & Banking - NBFCs


DCA initiates search and seizure against Ferguson

Richa Mishra

The report had reportedly criticised the quality of corporate governance between 1999 and 2001 in Tata Finance and its subsidiaries. Subsequently, Ferguson withdrew the report and stated that a new team had been assigned to prepare a fresh report.

NEW DELHI, Aug. 19

THE Department of Company Affairs (DCA) has initiated search and seizure against the audit firm A F Ferguson & Co after receiving information that evidence relating to the Tata Finance case was being destroyed at the Ferguson office in Mumbai.

Based on information received on Sunday, DCA moved an application before the magistrate under Section 234A of the Companies Act 1956.

The petition was approved by the magistrate today, following which a six-member DCA team headed by the Registrar of Companies (ROC), Mumbai, has been conducting the search and seizures at the Ferguson office in Mumbai, official sources said.

A F Ferguson had reportedly criticised the quality of corporate governance between 1999 and 2001 in Tata Finance and its subsidiaries. Subsequently, Ferguson withdrew the report and stated that a new team had been assigned to prepare a fresh report.

The decision to withdraw the report followed serious differences of opinion between the Tata company and the audit firm. While the Tatas held the former TFL Managing Director, Mr Dilip Pendse solely responsible for the state of affairs, the report had blamed Mr Kishor Chaukar, Managing Director of Tata Industries, along with Mr Pendse for allegedly withholding information from the TFL board.

On August 8, Ferguson, in an official statement, said that all partners in the firm had lost faith in Mr Y.M. Kale, chief architect of the controversial report, after an internal enquiry threw light on a number of issues relating to Mr Kale's past conduct. Three other employees of the audit firm also put in their papers.

The Reserve Bank of India has already initiated inspection of the books of Tata Finance. The Institute of Chartered Accountants of India had also raised the issue of possible professional misconduct of the audit firm.

Send this article to Friends by E-Mail

Stories in this Section
DCA initiates search and seizure against Ferguson


Mahajan holds talks with Tata, Ambani
Panel formed to study auditor-company ties
Ministry banking on monsoon revival to sustain tax revenues
Don't tie us up with dress code, say BoB staff
Experts to study I-T breaks for more services cos


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line