NEW DELHI : The Nationwide Monetary Reporting Authority (NFRA) has issued a sequence of orders this week, imposing sanctions on audit companies and particular person companions for deficiencies in performing statutory audits, confirmed the orders posted on the web site of the regulator.
The audit watchdog has imposed a penalty of ₹100,000 every within the case of 4 companions of a Kerala-based audit agency that carried out the statutory audit of branches of Dewan Housing Finance Corp. Ltd for the monetary yr 2017-18, the orders issued by NFRA confirmed.
Along with the financial penalties, the companions have additionally been debarred for one yr from auditing monetary statements or doing inner audits of any firm, confirmed the orders. Moreover audit deficiencies, the regulator additionally alleged the auditors of abdicating duty, leading to skilled misconduct.
The audit deficiency detected by NFRA pertains to a interval previous to the non-bank lender’s acquisition by the Piramal Group as a part of a debt decision plan.In January 2021, 94% of the collectors of DHFL had voted in favour of a decision plan by the Piramal Group and the deal was cleared by the RBI, the Competitors Fee of India and the Nationwide Firm Regulation Tribunal. An electronic mail despatched to the Piramal Group on Friday remained unanswered however business executives mentioned the Group has nothing to do with occasions previous to the DHFL deal. NFRA has additionally taken disciplinary motion towards the auditors of Espresso Day Enterprises Ltd.
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Supply: Live Mint