Page 2 - Nfra

NFRA imposes five-year ban, Rs 5 lakh penalty on auditor for lapses

The National Financial Reporting Authority (NFRA) on Friday slapped a fine of Rs 5 lakh and a five-year ban on Rakesh Puri for alleged professional misconduct in connection with the audit of Sun and Shine Worldwide Ltd (SSWL) for the financial years 2012-13 and 2013-14. SSWL, now known as Johnson Pharmacare Ltd, is a BSE-listed company and was dealing in commodity futures trading during period of audit assessed by the regulator. In its order, NFRA levied a fine of Rs 5 lakh on the auditor Rakesh Puri, a partner of Y.D. & Company. Besides, Puri has been debarred for a period of five years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate during the ban period. The regulator received information from Sebi pertaining to overstatement in reporting of sales and purchase figures to the tune of Rs 1,417 crore in the financial statements of SSWL for 2012-13 and 2013-14. Accordingly, an ...

NFRA examines ICAI proposals on accounting standard for insurance contracts

The National Financial Reporting Authority (NFRA) has discussed the ICAI proposals on a new Standard (Ind AS) for the accounting of insurance contracts. The audit regulator received these proposals from the Institute of Chartered Accountants of India (ICAI). NFRA will share its recommendations with the Ministry of Corporate Affairs (MCA), after which Ind AS 117 has to be considered and notified by the central government under the Companies (Indian Accounting Standards) rules 2015. When notified, it will replace the current notified Ind AS 104, insurance contracts, according to an official release. IFRS 17, originally issued by the International Accounting Standards Board (IASB), in May 2017, is a complete overhaul of the accounting for the insurance industry. It is specifically designed to capture the unique features of the insurance and investment contracts of the insurance entities. "This standard will enable the Indian insurance industry to present globally comparable financia

NFRA imposes fine, debars auditors for 3 yrs for professional misconduct

The National Financial Reporting Authority (NFRA) has imposed a fine and a three-year ban on two auditors for professional misconduct and other lapses in connection with the audit of SRS Ltd in 2017-18. In two separate orders, NFRA slapped a fine of Rs 3 lakh each on auditors -- Pankaj Kumar and Naresh Kumar, and debarred them 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 during the ban period. The order came after NFRA received a letter from the Serious Fraud Investigation Office (SFIO) which had investigated the affairs of SRS Ltd and the group companies. An investigation by SFIO had revealed that the company and its group companies had presented financial statements containing false statements of debtors and indulged in the malpractice of round-tripping and layering of transactions resulting in inflated purchases and sales. The NFRA initiated action under the Compan

NFRA, life insurance players discuss proposed changes in Ind AS 117

The National Financial Reporting Authority (NFRA) has held an interaction with members of the life insurance industry to discuss the proposed changes in Ind AS 117 -- accounting standard for insurance contracts. Ind AS 117 is based on high quality global standard IFRS 17, insurance contracts issued by the IASB (International Accounting Standard Board) of IFRS foundation. It is going to help investors and others to better understand insurers' risk exposure, profitability and financial position. Ind AS 117 is specifically designed to capture the unique features of the insurance and investment contracts of the insurance entities, according to an official release. "Given the importance of the insurance sector, it was important to appreciate the practices and standards followed by the industry and the expected benefits of their convergence with international standards and best practices," Ajay Bhushan Pandey, Chairperson, NFRA, said. Further, the discussions were also held with ...

Top headlines: Windfall tax cuts, Reliance Capital auction, and more

Business Standard brings you the top headlines at this hour

NFRA to carry out conduct audit quality inspections of Big 4 network firms

The National Financial Reporting Authority (NFRA) will carry out audit quality inspections of five audit firms, including the network entities of the Big 4, and the onsite inspections are expected to be done next month, according to a top official. "Audit quality inspections will be mutually beneficial for the audit firms as well as NFRA. It will help an independent regulator like NFRA to get feedback and also help in overall improvement of the audit profession," the watchdog's Chairperson Ajay Bhushan Prasad Pandey told PTI in an interview. To begin with, he said the regulator "will carry out inspections of five audit firms, the Big 4 network firms -- Deloitte, Haskins & Sells LLP, BSR & Co LLP, SRBC & Co LLP and Price Waterhouse Chartered Accountants LLP -- and Walker Chandiok & Co LLP". BSR & Co LLP and SRBC & Co LLP are the network firms of KPMG and EY, respectively. PwC, Deloitte, EY and KPMG are the four major global entities in the auditing space and ...

NFRA aligning to global standards but industry awaits more clarity

Experts want the authority to set some limit on the time it would spend on on-site visits

Debt-ridden IL&FS statutory auditor SRBC & Co resigns

Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has said its statutory auditor SRBC & Co has resigned with effect from September 28, 2021. "M/s SRBC and Co. LLP will be ineligible to continue as auditors of the Company for the financial year 2021-22 beyond September 30, 2021 having completed audits for three years," IL&FS said in a stock exchange filing. The National Financial Reporting Authority (NFRA) had earlier found serious lapses in the statutory audit of IL&FS Transportation Networks Ltd (ITNL), a subsidiary of IL&FS, for the 2017-18 fiscal, including that the company's losses were understated by at least Rs 2,021 crore. The statutory audit was conducted by SRBC & Co LLP. IL&FS further said the company has approved the appointment of CNK Associates LLP as statutory auditor for FY 2021-22. SRBC, in a statement, said it was appointed as the statutory auditor of IL&FS in September 2017 and has already served for a continuous ...

NFRA to hold talks with Corp Affairs Ministry about raising no. of members

Seeks to increase strength from 12 to 15-18 in order to build its regulatory capacity

NFRA says appointment of DHS as statutory auditor in 2017-18 'illegal'

The National Financial Reporting Authority (NFRA) has said that appointment of Deloitte Haskins and Sells LLP as the statutory auditor of IL&FS Financial Services Ltd (IFIN) for 2017-18 was "illegal". The latest conclusions are part of the Supplementary Audit Quality Review Report (SAQRR) dated December 7, 2020. The watchdog conducted an Audit Quality Review (AQR) of the statutory audit of IFIN for 2017-18 period. The AQR Report was issued on December 12, 2019. The SAQRR covers issues which were not covered in the AQR Report. According to the SAQRR, the appointment of Deloitte Haskins and Sells LLP (DHS) as the statutory auditor of IFIN for the year 2017-18 was "illegal", since the entity was not eligible to be appointed as an auditor due to violations. Those are "subsisting business relationships on the date of appointment" and "provision of non-audit services directly or indirectly" of the Companies Act, 2013. The watchdog said that DHS failed to comply with the requirements of .

Auditors seek fine-tuning audit report guidelines, approach Sebi, NFRA

The new disclosures and assessments are a part of the Companies (Auditor's Report) order, or CARO, effective this financial year

NFRA to serve notice on Deloitte in IL&FS Financial Services case

NFRA would seek Deloitte's response on its findings soon

PW India won't offer non-audit service to clients governed by NFRA

These are services such as tax advisory and consulting

NFRA, RoC seek information on whistleblower complaints, says Infosys

Infosys condemned the "mischievous insinuations made by anonymous sources against the co-founders and former colleagues, suggesting their involvement in the recent whistleblower allegations".

NFRA: The threshold limit has to be pragmatic, says Amarjit Chopra

Bureaucracy had been pushing for the NFRA, citing examples from other countries but the political leadership resisted such move