Steps to Check Fudging of Accounts by Companies
The Government has said that as and when any instance of wrong doing by any company comes to the notice, action is taken as per provisions of the Companies Act, 1956. In addition, the Ministry of Corporate Affairs has devised Early Warning System (EWS) based on the information available in MCA-21 System. Giving this information in written reply to a question in the Rajya Sabha, the Minister for Corporate Affairs, Shri Salman Khurshid, said that based on identified risk parameters, this system generates alerts in respect of unusual tendencies in financial statements. Based on these alerts, respective Registrars of Companies examine the concerned cases to find out irregularities, if any, and take action accordingly to law.