DHFL NFRA
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.
NFRA debars auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
The National Financial Reporting Authority (NFRA) has barred auditors of M/s Brightcom Group for up to ten years and imposed heavy monetary penalties on them, citing professional misconduct in auditing the company between FY20 and FY22.
NFRA debars auditor for lapses in books of Maharashtra-based Bilcare
The National Financial Reporting Authority (NFRA) has debarred auditor Ratan Laxminarayan Rathi of RL Rathi & Co for two years and imposed a penalty of Rs 3 lakh for professional misconduct in the audit of Bilcare. The financial statements of Bilcare were misstated due to interest cost recognition. Sebi reported the lapses.
NFRA bans two auditors for up to 10 years for lapses in DHFL’s FY18 audits
In two separate orders, made public on Wednesday, the regulator has banned Jignesh Mehta for taking up audits for 10 years and Amit Vinay Chaturvedi for five years. A penalty of Rs 5 lakh has also been imposed on each of them. These are among the severest punishments, extended by the NFRA, to scores of DHFL auditors in various cases of misconduct.
NCLAT upholds NFRA’s power. What does it mean for auditors and larger financial sector
The NFRA can also recommend accounting and auditing policies and standards to the government for adoption. Before it was set up, the Institute of Chartered Accountants of India (ICAI) had, more or less, exclusive jurisdiction over disciplining the auditors. The Ministry of Corporate Affairs and regulators like Sebi have limited oversight over auditors.
Stocks in news: LIC, Granules, Siemens, CAMS, Hero MotoCorp, GAIL
Granules India announced that the USFDA has approved its Abbreviated New Drug Application, filed by Granules Pharmaceuticals, a wholly owned foreign subsidiary of the company, for Sildenafil for Oral Suspension.
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NCLAT upholds NFRA penalty on DHFL auditors
The National Company Law Appellate Tribunal has upheld the penalty imposed by the National Financial Reporting Authority (NFRA) on auditors of Dewan Housing Finance Corporation Ltd (DHFL). The NFRA had fined 18 DHFL auditors Rs 1 lakh each, with 14 of them being barred from practicing for six months to a year. The auditors were found guilty of misconduct during branch audits and were blamed for failing to detect fraud at DHFL.
DHFL case: NFRA debars 18 auditors for up to a year for lapses
They have been barred from "being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate".
NFRA may approach SC over power to probe pre 2018 cases
NFRA has already barred some auditors allegedly involved in the IL&FS crisis from undertaking fresh work, in addition to imposing fines on them, but its orders have been challenged by them at the Delhi high courts. In fact, the aggrieved auditors have challenged the vires of Section 132 (4) of the Companies Act, 2013, and the relevant rules that empower NFRA to investigate professional lapses by auditors.
Dear chartered accountants, wake up and smell the coffee
As reporting entities, professionals have to undertake KYC (know your customer) of all clients entering these transactions and maintain their records. This measure is going to influence the way these professionals undertake due diligence of transactions, examine source of funds and report irregularities.
NFRA imposes fine, bans auditors for 1 yr for misconduct in audit of DHFL branches
As per the order, NFRA's investigation revealed that the appointment of none of the 33 branch auditors was approved at the Annual General Meeting (AGM) of DHFL, as required by the Companies Act. According to NFRA, the auditors also portrayed themselves as the "branch statutory auditor" in all communications with the DHFL and CAS, and issued an "Independent Branch Auditors' Report".
Need to strengthen corporate governance; adopt best global practices: Anurag Thakur to India Inc
Reeling out some of the steps taken in the recent past, he said the government decriminalised the company law defaults, permitted shifting of compoundable offences to an in-house education mechanism and cleared 72 amendments to the Companies Act, 2013.
Audit firms examine NFRA order in ILFS case, to plan for future implications
The NFRA report has again put a spotlight on the confusion on what services can be provided by an auditor to its audit clients.
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