India Probes ZTE, Vivo as More China Firms Under Scrutiny
- Companies scrutinized for alleged financial irregularities
- An initial report of findings is said to be expected in July
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India is probing the local units of ZTE Corp. and Vivo Mobile Communications Co. for alleged financial improprieties, according to documents seen by Bloomberg, extending an investigation into other China-based firms after fining Xiaomi Corp.
The Ministry of Corporate Affairs will scrutinize auditor reports and has received information from unnamed sources that indicates potential violation including fraud, according to the documents. In the case of Vivo, an inquiry was sought in April to detect if there were “significant irregularities in ownership and financial reporting” while authorities were asked to study the books of ZTE and submit findings “on urgent basis,” according to the documents.