New Delhi: The National Financial Reporting Authority has imposed a penalty of ₹300,000 on the statutory auditor of now de-listed company SRS Ltd for alleged professional misconduct and lapses in the FY18 audit of the company, showed an official order.
The engagement partner of the New Delhi based audit firm has also been debarred from taking up statutory or internal audit of any company for three years, showed the order posted on the website of NFRA.
An email sent to SRS Ltd on Saturday seeking comments for the story remained unanswered at the time of publishing. NFRA said that SRS Ltd went into bankruptcy proceedings in 2018 and that the NFRA initiated its investigation into the audit after receiving a reference from the Serious Faud Investigation Office (SFIO). An announcement on the company’s portal said that disbursement of creditors’ claims will be done as per the Insolvency and Bankruptcy Code (IBC). An announcement on the National Stock Exchange said that the company has been de-listed from 27 August 2021.
NFRA said that the engagement partner allegedly ignored the indicators pointing to the “abnormal state of affairs in the company having adverse implications for the true and fair view of financial statements.” The audit engagement partner failed to display professional scepticism and due diligence in reaching his audit opinion in accordance with standards of audit, the regulator alleged.
Download The Mint News App to get Daily Market Updates.
More
Less
For all the latest world News Click Here
