Appointment of Auditors of Government Owned Companies

(PIB NEWS) Aug,16, The Government has said statutory auditors for Government Companies are appointed by the Comptroller & Auditor General of India (C&AG) in exercise of the powers conferred under section 619(2) of the Companies Act, 1956 as amended vide Companies (Amendment) Act, 2000. For this purpose, a panel of firms of Chartered Accountants is maintained by the C&AG by inviting applications ‘on line’ every year from the eligible firms of Chartered Accountants. Giving this information in written reply to a question in the Rajya Sabha today Shri Salman Khurshid, Minister of Corporate Affairs, said that the eligibility criteria determined is displayed on the website of the C&AG of India i.e. www.cag.gov.in. The panel so formed is used for selection of statutory auditors of public sector undertakings for the ensuing financial year.Shri Khurshid further informed the House that selection of the statutory auditors for appointment is made by correlating the point score (calculated on the basis of the criteria for empanelment) earned by each firm of Chartered Accountants that applies for empanelment with the size of the audit assignment. The point score is based upon the experience of the firm, number of partners and their association with the firm, number of Chartered Accountant employees etc. for assessing that the antecedents of the firm are well established and the firm has capacity to handle the allotted audits. This system ensures that allotment of audit to Chartered Accountants’ firms is done objectively based on merit and competence.
===============================================

Railways to accept bank credit card as proof of identity for travelling on e-tickets

(PIB NEWS)Aug,16,  In an yet another passenger friendly move, the Ministry of Railways has decided to accept credit cards issued by banks with laminated photograph as proof of identity for traveling on e-tickets. The new provision has come into effect from 6th August, 2010.The bank credit card is in addition to the existing seven proofs of identity for undertaking journey on e-tickets namely; a) Voter Identity Card, b) Passport, c) PAN Card, d) Driving License, e) Photo Identity Card issued by Central/State Government. f) Student Identity Card with photograph issued by recognised School/College for their students and g) Nationalised Bank Passbook with photograph. There will be no concession including student concession admissible to the persons booking e-tickets except concession for senior citizens. Ministry of Railways has asked all Zonal Railways to issue necessary instruction to all concerned particularly ticket checking staff so as to educate them about this modified provision and to avoid inconvenience to the passengers.
===================================================

Pappu Yadav arrested by CBI

Aug,16, Following a Supreme Court order, former Rashtriya Janata Dal MP Rajesh Ranjan alias Pappu Yadav was arrested by the Central Bureau of Investigation (CBI) from a hospital in Haryana’s Gurgaon district, officials said Monday.“He was admitted in Artemis Hospital in Gurgaon from Saturday. The CBI team reached the hospital on Monday morning and after taking clearance from hospital (authorities) he was brought out of the hospital at around 3 p.m.,” a CBI source said.“I wanted to surrender and informed the DIG (deputy inspector general of police), Bihar, about my presence in hospital. My operation was due on Monday,” Pappu Yadav told reporters while coming out from hospital.“I will take court permission for the operation now,” Yadav added.Yadav’s father is admitted in Sir Ganga Ram hospital in Delhi. He is reported to be critical.Officials said Yadav will be produced before a Gurgaon court.CBI officials said the court issued a non-bailable warrant against him two weeks ago.
=================================================

Court reserves verdict on Raju's bail plea

Hyderabad,Aug 16:Andhra Pradesh High Court Monday reserved its order on the bail petition of B. Ramalinga Raju, the prime accused in the multi-crore Satyam fraud case.Justice Raja Elango reserved the order after hearing the arguments from Raju's counsel and the Central Bureau of Investigation (CBI). Opposing the bail plea, Additional Solicitor General H.P. Rawal argued that if granted bail the accused could destroy evidence, especially with regard to the money diverted and sent abroad. He told the court that long period of incarceration, delay in trial and Raju's ailment could not be the grounds for granting the bail. Terming the bail plea as delaying tactics, the prosecution informed the court that the trial could be completed in six months. Stating that the accused was involved in economic terrorism and claiming that the crime caused a loss of Rs.24,000 crore to investors, Rawal contended that Raju could not claim parity with other accused granted bail by the high court and the Supreme Court. "In this case there is higher degree of seriousness (of charges)," said Rawal and also informed the court that the prosecution would challenge even the bail granted to other accused. Submitting a list of visitors who called on Raju undergoing treatment for Hepatitis C at government-run Nizam's Institute of Medical Sciences (NIMS) here for nine months, the prosecution disputed the claim that he was seriously ill and hence was unable to appear before the trial court. Stating that as a citizen he was unable to understand the case, the judge wondered why there was no hue and cry from investors if the inflating profits of the company had caused them huge losses. Raju's senior counsel M. Natrajan said the trial might take six years and not six months as claimed by the prosecution. He said sending letters of rogatory to six countries (where the Satyam money was allegedly diverted) seeking judicial assistance alone would take two years. He told the court that Hepatitis C was affecting Raju's breathing, liver and heart. "He may suffer internal bleeding and a heart attack," he said. "But the offence committed by you has spread virus to people," remarked the judge. The former chairman of Satyam Computer Services Limited remains the only accused in judicial custody as courts have granted bail to the other accused in the case. The court on July 20 had granted bail to five accused including Ramalinga Raju's brother and former managing director of Satyam, B. Rama Raju and former chief financial officer Vadlamani Srinivas. The courts had earlier granted bail to three accused while Ramalinga Raju's another brother B. Surayanarayana Raju had obtained anticipatory bail last year. Ramalinga Raju had shocked the corporate India in January last year by admitting Rs.7,800 crore accounting fraud in the IT major. The CBI, however, told the court in November last year that the scam is of over Rs.14,000 crore. All the accused are facing charges of criminal conspiracy, criminal breach of trust, cheating, forgery and falsification of accounts.
====================================================