NFRA Bans 2 Auditors for Misconduct in Seya, SRS Cases
By Rediff Money Desk, NEWDELHI Jan 09, 2024 19:31
The National Financial Reporting Authority (NFRA) has barred two auditors for professional misconduct in the Seya Industries and SRS Real Infrastructure matters, imposing fines of Rs 20 lakh and Rs 3 lakh respectively.
New Delhi, Jan 9 (PTI) The National Financial Reporting Authority (NFRA) has imposed a fine of Rs 20 lakh on an auditor and barred him for 10 years for professional misconduct in the matter of Seya Industries Ltd.
Anil Chauhan and his audit firm Anil Chauhan & Associates have been barred for 10 years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate, according to an order issued on January 5.
Chauhan is the proprietor of audit firm Anil Chauhan & Associates and the Engagement Partner (EP) for the statutory audit of Seya Industries for financial years 2018-19 and 2019-20.
The ruling came after NFRA received information from Sebi in March 2023 about non-compliance with the accounting standards by the company, misreporting in the financial statements and non-cooperation by Anil Chauhan & Associates.
Thereafter, NFRA initiated an investigation into the professional conduct of statutory auditors of Seya Industries Ltd, Mumbai for 2018-19 and 2019-20 periods.
NFRA had asked Chauhan to provide the audit files and some other information related to the company. However, despite repeated reminders, he did not submit the requisite documents and information, as per the order.
The regulator also found Chauhan guilty of professional misconduct as he failed to comply with the requirements of provisions of the Act, Code of Ethics (2009), Standards on Auditing (SA), and gross negligence in maintaining the audit files.
In a separate order issued on January 8, NFRA slapped a fine of Rs 3 lakh on an auditor for lapses in the audit of SRS Real Infrastructure Ltd (SRSRIL) for the 2017-18 financial year.
The watchdog has prohibited Pankaj Kumar for three years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate.
Further, it said this order will run concurrently with the penalty order dated April 2023 issued against Kumar in the case of SRS Ltd.
Pursuant to information received from the Serious Fraud Investigation Office (SFIO), indicating suspicious transactions in the company and the group, NFRA initiated action against the auditor of SRSRIL for professional misconduct in relation to statutory audit for fiscal 2017-18.
Kumar, partner of SVP & Associates, was the Engagement Partner (EP) for the statutory audit of SRSRIL during that period.
According to NFRA, Kumar failed to demonstrate compliance with the requirement of the SA concerning the Engagement Quality Control (EQC) reviewer.
Also, the EP failed to determine materiality, plan the audit of financial statements, communicate with Those Charged with Governance (TCWG), and failed to identify and assess the risks of material misstatement through understanding the entity and its environment, the regulator said.
Anil Chauhan and his audit firm Anil Chauhan & Associates have been barred for 10 years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate, according to an order issued on January 5.
Chauhan is the proprietor of audit firm Anil Chauhan & Associates and the Engagement Partner (EP) for the statutory audit of Seya Industries for financial years 2018-19 and 2019-20.
The ruling came after NFRA received information from Sebi in March 2023 about non-compliance with the accounting standards by the company, misreporting in the financial statements and non-cooperation by Anil Chauhan & Associates.
Thereafter, NFRA initiated an investigation into the professional conduct of statutory auditors of Seya Industries Ltd, Mumbai for 2018-19 and 2019-20 periods.
NFRA had asked Chauhan to provide the audit files and some other information related to the company. However, despite repeated reminders, he did not submit the requisite documents and information, as per the order.
The regulator also found Chauhan guilty of professional misconduct as he failed to comply with the requirements of provisions of the Act, Code of Ethics (2009), Standards on Auditing (SA), and gross negligence in maintaining the audit files.
In a separate order issued on January 8, NFRA slapped a fine of Rs 3 lakh on an auditor for lapses in the audit of SRS Real Infrastructure Ltd (SRSRIL) for the 2017-18 financial year.
The watchdog has prohibited Pankaj Kumar for three years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate.
Further, it said this order will run concurrently with the penalty order dated April 2023 issued against Kumar in the case of SRS Ltd.
Pursuant to information received from the Serious Fraud Investigation Office (SFIO), indicating suspicious transactions in the company and the group, NFRA initiated action against the auditor of SRSRIL for professional misconduct in relation to statutory audit for fiscal 2017-18.
Kumar, partner of SVP & Associates, was the Engagement Partner (EP) for the statutory audit of SRSRIL during that period.
According to NFRA, Kumar failed to demonstrate compliance with the requirement of the SA concerning the Engagement Quality Control (EQC) reviewer.
Also, the EP failed to determine materiality, plan the audit of financial statements, communicate with Those Charged with Governance (TCWG), and failed to identify and assess the risks of material misstatement through understanding the entity and its environment, the regulator said.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- AvanceTechnologies
- 0.94 ( -4.08)
- 36935326
- Vodafone Idea L
- 7.88 ( -2.11)
- 35484083
- Srestha Finvest
- 0.68 (+ 3.03)
- 30298217
- ARC Finance
- 2.78 (+ 2.96)
- 16033600
- Suzlon Energy Ltd.
- 62.50 ( -6.49)
- 13725252
MORE NEWS
Flender India to Invest Further in Indian Market
Flender India, part of the Flender Group, plans to continue investing in the Indian...
Aditya Birla Group to Invest More in US -...
Aditya Birla Group Chairman Kumar Mangalam Birla says the group is looking to invest...
Multipolar World: Jaishankar on Investment Targets
External Affairs Minister S Jaishankar discusses the shift towards a multipolar world...