CA firms to inspect NBFC accounts

The RBI proposes to engage firms of chartered accountants to carry out a special round of inspection of some of the non-banking finance companies. According to Dr. C. Rangarajan, the RBI Governor, outside auditors are being used as a “special vehicle” for examining NBFC accounts and their reports will be scrutinised by the Department of Supervision. Addressing the RBI’s officers-in-charge of the Financial Companies Wings in the regional offices, he said the central bank had constituted a committee with representatives from the RBI and the ICAI to devise a format of report in which the auditor of the NBFC will be required to give his opinion on specific aspects.

Coal bed methane (CBM) blocks are to be offered for exploration and exploitation through an open competitive bidding system under the terms of a fiscal and broad model contract to be drawn up shortly. As per the approval procedure cleared by the Cabinet Committee on Economic Affairs (CCEA), the award of CBM blocks to prospective investors will be made by the CCEA on recommendations of a four-member Empowered Committee of Secretaries.

Aviation pact signed with Singapore

After long negotiations spread over a few months, India has entered into a key bilateral pact on aviation with Singapore. Described a “win-win” agreement, it offers a new port of call for Singapore Airlines at Thiruvana-nthapuram, gives Air-India access to North America and Australia through code-share flights and permits 2,400 more seats by the year 2000 on this sector. The Indian delegation led by the Civil Aviation Secretary, Mr. M.K. Kaw, thrashed out the issues in Singapore with the island republic’s team headed by its Mr. Teo Ming Kian.