Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

MCA moving tribunal to bar KPMG, Deliotte Haskin from auditing for five years

BSR & Co, an arm of KPMG, was an auditor of IFIN for financial year 2017-2018 soon after the scam broke out.

The Ministry of Corporate Affairs is moving National Company Law Tribunal, Mumbai next week to bar BSR & Co, an arm of KPMG, and Deliotte Haskin from auditing any company for five years.

The MCA is moving to bar these auditors after IL&FS finance (IFIN) received the first charge-sheet from Serious Fraud Investigation Office. SFIO found many lapses with the help of the Grant Thronton forensic audit. The Grant Thronton report found many instances of suppressed details of ever-greening loan without proper collateral.

According to the SFIO, Deliottee disregarded regulations from the Reserve Bank of India (RBI) and deliberately ignored of IFIN’s “ever-greening” of loans.

As per the company's act, if the application is made by the central government and the tribunal is satisfied that any change of the auditor is required, it shall make an order within fifteen days of receipt of such application that they shall not function as an auditor and the central government may appoint another auditor in their place.

An auditor, whether an individual or a firm, against whom that final order is passed by the tribunal under this section shall not be eligible to be appointed as an auditor of any company for a period of five years from the date of passing the order. And, the auditor shall also be liable for action under section 447.

BSR & Co was an auditor of IFIN for financial year 2017-2018 soon after the scam broke out. Deliottee did the audit from for a decade until 2016-17.

Refer:https://www.moneycontrol.com

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