New Delhi: The National Financial Reporting Authority has imposed a penalty of Rs. 300,000 on the statutory auditor of now de-listed company SRS Ltd for alleged professional misconduct and lapses in the company’s FY18 audit, an official order showed.
The engagement partner of the New Delhi-based audit firm has also been debarred from conducting statutory or internal audit of any company for three years, said the order posted on the NFRA website.
An email sent to SRS Ltd on Saturday seeking comment for the story remained unanswered at the time of publication. NFRA said that SRS Limited went into bankruptcy proceedings in 2018 and NFRA began its investigation into the audit after receiving a reference from the Serious Fraud Investigation Office (SFIO). An announcement on the company’s portal said that the claims of creditors would be paid under the Insolvency and Bankruptcy Code (IBC). An announcement on the National Stock Exchange said that the company has been de-listed with effect from August 27, 2021.
NFRA said the engagement partner allegedly “ignored indicators having an adverse effect on the true and fair view of the financial statements pointing to an abnormal state of affairs in the company.” Audit opinion As per the standards of audit, the regulator alleged.
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