Earlier in November, the MCA summoned the company’s directors and its auditor Deloitte to seek clarity on particular audit violations found during the investigation through its registrar of companies (RoC).
According to CNBC TV18, the Ministry of Corporate Affairs (MCA) is anticipated to urge a probe into the financial records of Chinese carmaker MG Motor India and Beijing-based smartphone maker Vivo. This step raises the stakes for Chinese enterprises operating in the nation.
Earlier in November, the MCA summoned the company’s directors and its auditor Deloitte to seek clarity on particular audit violations found during the investigation through its registrar of companies (RoC). The directors were called per Section 207 of the Companies Act of 2013.
The government had submitted a notice to the firm, questioning about the causes of its losses in the fiscal year 2019-2020, the company’s first year in India. The government launched the investigation in response to an examination of MG Motor India’s financial statements, which revealed suspicious related-party transactions, alleged tax evasion, billing discrepancies, and other irregularities, according to Bloomberg, citing people familiar with the matter.
In response, the automaker emphasized its commitment to the highest compliance and governance standards, claiming that it is a law-abiding firm committed to openness.
“No automobile company can be profitable in its first year of operations,” MG Motor India stated.
Separately, nearly a month after the Enforcement Directorate (ED) arrested four industry executives, including one Chinese national working for the smartphone maker in India, in a case of alleged money laundering, Business Television reported, citing legal documents and lawyers working on the case.
According to persons acquainted with the situation, the Ministry of Corporate Affairs (MCA) has requested MG Motor India to clarify various suspected discrepancies in its records.
The MCA has summoned the company’s directors and its auditor Deloitte to explain some alleged audit shortcomings found throughout the investigation through its registrar of companies (RoC).
The Ministry of Corporate Affairs in India has investigated the local business of Chinese automaker SAIC Motor Corp Ltd. The investigation began after a careful examination of the company’s financial accounts revealed suspected related-party transactions, alleged tax evasion, under and over-invoicing of invoices, and other irregularities, according to the persons, who asked not to be identified because the subject is private.
