IPL teams' finances not clean?

Mon, Jul 26 10 10:07 AM

New Delhi, July 25 -- The Institute of Chartered Accountants of India (ICAI) will submit a report on the balance sheets of all the eight Indian Premier League (IPL) franchises in the next four weeks, amid indications that the accounting regulator has come across violations of auditing norms by some of the teams. "There could be some discrepancies (in statements of accounts of IPL teams)," ICAI president Amarjit Chopra told Hindustan Times. ICAI's findings, which will be submitted to the corporate affairs ministry, are part of a multi-agency probe launched in April after allegations of financial irregularities and shady deals hit the popular league. While the income tax department is investigating tax evasion by entities involved in the league, Enforcement Directorate (ED) officials are chasing foreign exchange law violations in a maze of transactions linking tax havens and mysterious stakeholders in teams. ICAI is examining if team owners had contravened auditing norms while presenting their financial statements. Chopra said ICAI would not hesitate to take action against the teams' chartered accountants if there were conclusive evidence that books were doctored. "We will proceed against our members (chartered accountants) if any discrepancy or doctoring of books if found," he said. The Financial Reporting Review Board, an oversight committee set up by the regulator, is examining the report. Chopra however did not elaborate on the course of action that could be taken.

The corporate affairs ministry had expressed concerns over inadequate information in balance sheets and records filed by some of the IPL franchises with the Registrar of Companies.

Source: Published>