Hyderabad, August 30: Stating that the Rs 7,800 crore accounting fraud at Satyam Computer Services Ltd., is a blot in the entire system, Chief Minister Y S Rajashekhara Reddy urged the practising chartered accountants to be cautious while auditing the books of accounts.
Speaking at a two-day conference organised by the Institute of Chartered Accountants of India (ICAI) here on Saturday, Reddy said, “in a society like ours, there are some blots here and there and the recent episode of Satyam is one such blot. It’s a total system failure as there are some anti-social people who take advantage of the system.’’ He said that when auditors issue a certificate, it is taken on face value and hence its essential to be guarded while issuing the certificate. “If you are complacent, society has to pay a price for that,’’ he added.
Talking about the importance of capital availability for common man, especially to farmers, the minister said “economic growth of a country or state is the growth of every individual and economy can’t really leap forward as long as the fruits of economic advancement reach the common man.’’ He also underscored that the State of Andhra Pradesh offers the lowest rate of interest for Self-Help Groups (SHGs). “Though banks lend capital at about 9 per cent, GoAP subsidizes about 6 per cent, so that the effective rate of interest for members is about 3 per cent,’’ he said. So far, there are nearly one crore members, who have taken an annual bank credit of Rs 10,500-11,000 crore.
“Over the past five years, SHG lending has grown phenomenally from Rs 700 crore to Rs 10,000 crore and this year we are targeting to lend Rs 12,000 crore,’’ he added. Interestingly, more than 55 per cent lending from banks to SHGs across the country is issued to SHGs in Andhra Pradesh.
Reddy said that the Government is attempting to inculcate the same amount of financial discipline among farmers and gradually reduce the interest rate to farmers.
Similarly, the Government has earmarked Rs 17,000 crore for irrigation projects. “The idea is to bring 1,22,000 acres under irrigation. We have started this project five years back and will complete this over the next three years,’’ he said.
He also said that in view of drought, Government of India is likely to increase the outlay for the National Rural Employment Guarantee programme from Rs 4,800 crore to Rs 7,000 crore this year.
–Agencies–