ICAI to check books of cos whose directors resigned lately

The Institute of Chartered Accountants of India (ICAI) plans to scrutinise the books of companies that have seen independent directors resign in the last two months, after the role of such directors came under intense scrutiny in the wake of the major financial fraud at Satyam. 

Uttam Prakash Agarwal, President, ICAI, said he will scrutinise the books of companies where independent directors resigned in the past two months. He added that around 181 independent directors have resigned in the last three months. However, Jain asserted that there is no suggestion of any financial wrongdoing by any of these companies. 

Here is a verbatim transcripttt of the exclusive interview with Uttam Prakash Agarwal on CNBC-TV18. Also watch the accompanying video.  

Q: What is the concern at ICAI? Are you all getting a feedback from independent directors that they don’t want to go through all the mess and all the problems or is it that you are worried that certain companies are more the cause of concern than the entire lot? 

A: I think the whole issue of ICAI has been treated totally in a wrong direction. After the Satyam episode this is the remedial action ICAI is taking. Let me tell you that our Institute of Chartered Accountants of India is proactive in taking these types of action. Three years back we started a new board to examine and review the financial statements signed by our Chartered Accountants. For the last three years we have selected a few companies which are listed on stock exchange and we have different criteria and we decide from situation to situation. So far we were going on the basis of the listed company but after the Satyam case, we are thinking to go for selective companies.