AUDITIONS

Government working on aggregation of CA firms, accounting standards for insurance sector

Government and ICAI collaborate to boost global accounting firm presence. Efforts include setting standards for insurance sector and LLPs, and reducing the time for voluntary company closure. ICAI President plans for CA firm aggregation in the near future.

Explained: Expense ratio in mutual funds and how your money is spent

In other words, it is the per-unit cost of running and managing the mutual fund. The expense ratio differs from fund house to fund house. The expense ratio is calculated as a percentage of daily investment value.

Delhi T-1 roof collapse: 'Structural audit of all airports ordered,' says Aviation Minister Naidu

Risk-based audits of drug units to begin from July 1

The revised Schedule M, which is considered more stringent than the World Health Organization's (WHO) good manufacturing practices (GMP) in certain areas, was notified on December 28, 2023. Companies with turnover of over ₹250 crore will have to comply with the upgraded version of Schedule M, starting July 1, and the remaining others, which are largely micro, small, and medium enterprises (MSMEs), have been given a year's time to comply. Inspections on those firms will begin from January 1, 2025.

Sebi mulls relaxing some disclosure norms for listed firms

The Securities and Exchange Board of India (SEBI) is also evaluating giving listed companies more time to publicly disclose litigations or disputes that they are involved in, it said in a consultation paper published on Wednesday.

Certification to be must for road expansion joints

Road transport and highways ministry will soon mandate road contractors to certify all expansion joints on bridges and roads. This new requirement aims to prevent mishaps from the premature failure or deterioration of joints, which could lead to accidents.

Amid outflow fears, RBI reviews LCR by carrying out special audits with banks

Recently, the Reserve Bank of India conducted special audits with banks to verify their holdings of eligible securities for maintaining the liquidity coverage ratio (LCR). This action coincides with the central bank's apprehension regarding potential sudden withdrawals via digital banking channels. Introduced post the 2008 global financial crisis, LCR mandates banks to retain specified amounts of government bonds that can be quickly sold to manage a theoretical 30-day stress period featuring significant cash outflows.

First NFRA annual report on eight audit firms by November

The National Financial Reporting Authority (NFRA) is set to conduct its first annual inspection of eight audit firms, including the Big Five, to reveal its findings by October or November. The inspection will focus on auditors' processes and standards, revealing how NFRA plans to strengthen the country's audit and accounting ecosystem to combat corporate frauds and uphold shareholders' interests in a rapidly growing economy.

Air India Express completes IATA's operational safety audit

Air India Express, the budget carrier of Tata Group, announced on Monday the successful completion of its IATA Operational Safety Audit (IOSA) conducted by the International Air Transport Association (IATA), the global trade association for airlines. Enhancing airline operational safety and improving efficiency are the primary objectives of IOSA registration. The audit evaluates various aspects including corporate organization, management, flight operations, operational control, and flight dispatch, among others.

RBI's special audit over, IIFL Finance appoints team to implement corrective actions

IIFL Finance, under scrutiny by the RBI for irregularities in its gold loan portfolio, has taken corrective actions to address concerns. RBI directed the company to halt new gold loans due to supervisory concerns and deviations in gold assessment. The company raised capital through rights issues and NCDs to mitigate risks and reported a net profit in Q4.

Central Excise Bill may be introduced in budget session

The Centre is set to introduce the Central Excise Bill, 2024 to replace the outdated Central Excise Act, 1944 and align excise law with GST and customs. The bill aims to reduce compliance burden, enhance transparency, and address excise duty exemptions for SEZs. It also empowers authorities to demand duty and introduces the concept of 'related persons' from customs and GST laws.

Lok Sabha Election Result 2024: How will 64 crore votes be counted? Here is the complete process

The counting of votes for the Lok Sabha elections will follow strict guidelines set by the Election Commission. The process will begin with the counting of postal ballot papers, followed by the counting of votes from Electronic Voting Machines (EVMs). The Control Unit (CU) and Form 17C will be used for EVM vote counting, ensuring the CU's paper seal is intact and votes match Form 17C. Verification of Voter Verified Paper Audit Trail (VVPAT) slips will follow, including mandatory verification from five randomly selected polling stations per constituency.

PM Modi reviews the impact of cyclone Remal and heatwave; discusses next govt's 100-day agenda

PM Modi reviewed cyclone impact, monsoon forecast, heatwave measures, fire safety audits, IMD forecasts, post-cyclone situation, NDRF teams' deployment, and discussed World Environment Day plans and 100 days agenda.

Lok Sabha Elections: Opposition to discuss counting norms with ECI today

The opposition alliance demanded that the Election Commission of India (ECI) follow the laid out procedure, including counting postal ballots first and adhering to the Supreme Court's guidelines on counting a minimum five per cent of voter verifiable paper audit trail (VVPAT) per polling booth.

Audit panels of companies can’t escape blame by citing auditors’ failure: NFRA chief

NFRA chairman Ajay Bhushan Pandey emphasized the audit committee's responsibility in ensuring accurate financial statements, even if auditors fail in their duty. He highlighted the need for meaningful communication between audit committees and auditors, stating that it should not be a mere formality. Pandey's remarks come as the NFRA plans to engage with large listed companies to promote accounting standards and curb corporate frauds. This regulatory outreach is part of efforts to protect retail stock investors, a focus highlighted by Finance Minister Nirmala Sitharaman.

RBI going Hi-tech in regulation, risk management

The Reserve Bank of India is on a drive to raise the use of technology in key areas like supervision and risk management but flagged the downside risks and how widespread the challenges could be in the adoption of Artificial Intelligence and Machine Learning.

Faced with RBI audit, IIFL Finance delays Board meet for earnings release

IIFL Finance extends announcement of quarterly earnings beyond May 30 due to RBI audit, anticipates releasing results by June 30.

Four European Union banks seek RBI nod for clearing model

"There was a meeting last month between the heads of four European banks and top RBI officials. The banks have sought the RBI's approval on the proposed third-party model because there is no established rulebook for this kind of arrangement," a source aware of the developments said.

RBI tells money changers to avoid build-up of idle foreign currency balances

“Data of such sale and purchase should be maintained and made available for audit / inspection,” the RBI said. Central bank norms allow full fledged money changers to obtain their normal business requirements of foreign currency notes from other full fledged money changers and authorised dealers in India.

Delhi govt to direct private, state-run hospitals to complete fire audit by June 8: Bharadwaj

Dr Naveen Khichi and Dr Aaksh arrested for running an unlicensed neonatal hospital without qualified doctors, where a fire killed newborns, as Health Minister Saurabh Bharadwaj addresses fire safety measures and compensation for affected families.

NFRA to engage with some big listed companies on audit compliance

The regulatory outreach could involve the NFRA's engagement with audit panels, independent directors, chief financial officers and others on the boards of these companies, said one of the persons. The regulator is close to finalising a framework to hold such huddles and may invite listed companies, where large public interest is involved, for such meetings, according to another person.

Making independence count

Sebi recently fined two independent directors (IDs) ₹10 lakh each for neglecting their statutory duties and failing to protect shareholders' interests, highlighting the increasing scrutiny on IDs. The role of IDs has evolved to encompass crisis management, risk assessment, and sustainability, as per CII guidelines. There's a call for robust evaluation mechanisms for IDs and legal safeguards to protect them from personal liability. Sebi's decision coincides with the tenure rule for IDs introduced by the Companies Act, raising concerns about the independence of IDs, especially those with ties to the promoter group or former employees.