| According to banking sources, the auditing firm has made it clear that it had mentioned the figures of non-performing assets (NPAs) of the bank as part of the auditor's report to the annual report. |
| There has been mention of the NPAs and its subsequent impact on the banks' balance sheet in the annual report for 2001-02 and 2002-03. |
| The meeting with RBI follows the informal communication reportedly made to various banks by RBI for not having PWC in any further assignments. |
| In response to a faxed query sent to the legal cell of PwC, the company secretary said: " It is not in our policy to comment on speculation". Meanwhile, the RBI is preparing itself with all facts and figures in reply to the series of questions raised by the standing parliamentary committee on finance. |
| Sources added that the bank has already sent its final report on GTB to the government. However, the central bank is accumulating additional information to respond to the queries of the parliamentary committee, added sources. |
| In the annual report of GTB for 2001-02, Lovelock and Lewes, which is part of PwC, has drawn reference to the additional write-offs of NPAs aggregating Rs 201.95 crore as part of auditor's report. |
| Similarly, in the annual report for 2002-03, the auditor's report prepared by PwC had also drawn attention to the fact. |
| The auditor's report stated that the accounts was prepared as a going concern even though the net worth of the bank has been substantially eroded after considering the loss for the year on account of provision against non-performing assets, taking into account management's assessment of growth of business, infusion of capital through strategic financial/investment /issue of further capital. |
| The report further said that the accounts, accordingly, do not include adjustments aforesaid in case the management's business plans do not materialise. |
| The RBI is yet to finalise the order banning PwC as a auditing firm for banks, sources added. |
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