The Institute of Chartered Accountants of India (ICAI) will take a few more months to submit its report on the balance sheets of eight Indian Premier League (IPL) franchises, amid indications that accounting regulator has stumbled upon violations of auditing norms by some teams in the league.
The regulator, which was earlier checking the records of these teams only for the first year, has now widened the scope to the franchisees’ books for the three years that the league has been held, a government source said on the condition of anonymity.
The ICAI’s findings, which will be submitted to the ministry of corporate affairs (MCA), are part of a multi-agency probe launched in April last year after allegations of financial irregularities hit the popular league.
“It may take some more time to furnish the report,” said G Ramaswamy, president, ICAI, when asked about the status.
While the income tax department is conducting an investigation into tax evasion by entities involved in the league, officials of the Enforcement Directorate (ED) are separately chasing violations in foreign exchange laws in a maze of transactions linking tax havens and mysterious stakeholders in teams.
The ICAI is examining if team owners had contravened auditing norms while presenting their financial statements and ownership details.
{{/usCountry}}The ICAI is examining if team owners had contravened auditing norms while presenting their financial statements and ownership details.
{{/usCountry}}The fourth season of the IPL will begin later this month. It will be a 10-team league with Kochi and Pune teams taking part for the first time this year.
The ICAI’s financial reporting review board, an oversight committee set up by the regulator, is examining the report.
The MCA, which is also separately going through the records of these franchise teams, had also expressed concerns over inadequate information in balance sheets and records filed with the Registrar of Companies by some of the IPL franchises.