The crisis in India’s leading shadow banker IL&FS group has raised questions about the role played by well-known auditors such as Deloitte and KPMG for not raising timely red flags on bad loans and manipulation of accounts.
The Ministry of Corporate Affairs has approached the National Company Law Tribunal to bar the auditors of the IL&FS Financial Services (IFIN) – Deloitte Haskins & Sells and BSR & Associates – from the business for five years for alleged collusion with the IFIN management. BSR is a KPMG network accounting firm.
The ministry’s application also named individuals – former Deloitte chief executive Udayan Sen, Deloitte partner Kalpesh Mehta and BSR partner Sampath Ganesh. It has also sought to appoint a new statutory auditor for the company.
The National Company Law Tribunal has asked the auditors to file replies by June 19. The case has been listed for hearing on June 21.
Also Read: India’s IL&FS board seeks ban on Deloitte
The move comes after an investigation by the Serious Fraud Investigation Office, which allegedly revealed that auditors connived with IFIN’s former directors to conceal information about wrongdoing by managers.
The entire IL&FS network had more than 35 firms that audited subsidiaries, joint ventures, and associate firms.
Some of the major Indian firms including Sharp and Tannan, KS Aiyar & Co and MP Chitale were auditors of the subsidiaries. The Serious Fraud Investigation Office is investigating the role played by senior executives and audit committee members of these 35 companies.
In a related development, the Serious Fraud Office investigation also revealed that in 2017 a complaint by a whistleblower was allegedly covered up by the top management of IL&FS in connivance with independent directors. The audit committee of IFIN was accused of simply abiding by the management version and not delving into allegations made by the whistleblower.
The scam at IL&FS came to light last year after several group entities defaulted on repayments due to severe liquidity problems.Later, the government appointed a new board of directors, led by noted banker Uday Kotak, which is now working on ways to revive the ailing group. IL&FS group has an accumulated debt burden of more than 900 billion rupees – close to US$13 billion.
You really make it seem so easy with your presentation but I find this topic to be really something which I think I would never understand. It seems too complex and very broad for me. I am looking forward for your next post, I’ll try to get the hang of it!
You are my inspiration , I possess few blogs and infrequently run out from to post : (.
This website is my breathing in, real fantastic style and design and perfect content.
Appreciate it for all your efforts that you have put in this. very interesting info .
It’s actually a great and useful piece of information. I’m glad that you shared this helpful info with us. Please keep us informed like this. Thanks for sharing.
Throughout the grand design of things you’ll get a B- just for effort and hard work. Exactly where you misplaced me personally was first in all the details. As they say, details make or break the argument.. And it couldn’t be much more correct right here. Having said that, let me say to you just what did do the job. Your writing is highly powerful and this is possibly why I am making the effort in order to opine. I do not make it a regular habit of doing that. Second, even though I can easily notice a jumps in reason you come up with, I am definitely not sure of exactly how you appear to connect your ideas which produce the actual conclusion. For now I shall yield to your position however trust in the future you link the facts better.
You made some good points there. I looked on the internet for the subject and found most guys will consent with your site.
I have recently started a blog, the info you provide on this website has helped me greatly. Thanks for all of your time & work.
Thank you a lot for sharing this with all of us you actually recognize what you’re talking about! Bookmarked. Kindly additionally seek advice from my website =). We can have a hyperlink change arrangement between us!
Throughout this grand pattern of things you’ll receive a B+ with regard to effort. Exactly where you lost us was first in all the specifics. As people say, details make or break the argument.. And that couldn’t be much more correct at this point. Having said that, permit me reveal to you exactly what did give good results. Your authoring is quite convincing and this is possibly why I am making the effort in order to opine. I do not make it a regular habit of doing that. 2nd, even though I can certainly see the leaps in logic you come up with, I am not necessarily certain of just how you seem to unite the points which produce the final result. For the moment I shall yield to your issue but hope in the future you connect your dots much better.
Regards for helping out, fantastic info. “The health of nations is more important than the wealth of nations.” by Will Durant.
I have been absent for some time, but now I remember why I used to love this web site. Thank you, I¦ll try and check back more often. How frequently you update your web site?
Very interesting information!Perfect just what I was searching for!
Very interesting points you have remarked, appreciate it for posting. “The biggest fool may come out with a bit of sense when you least expect it.” by Eden Phillpotts.
I¦ve been exploring for a little for any high-quality articles or weblog posts on this kind of space . Exploring in Yahoo I finally stumbled upon this web site. Reading this information So i am satisfied to exhibit that I have a very excellent uncanny feeling I found out just what I needed. I so much certainly will make certain to do not fail to remember this web site and give it a look regularly.
Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say fantastic blog!
I like this web site so much, bookmarked.
My brother suggested I might like this web site. He was entirely right. This post actually made my day. You cann’t imagine simply how much time I had spent for this info! Thanks!
hello!,I like your writing very much! percentage we communicate more about your article on AOL? I require an expert on this space to resolve my problem. Maybe that’s you! Looking forward to look you.
I was recommended this blog via my cousin. I’m not certain whether this post is written by means of him as nobody else recognise such particular approximately my difficulty. You’re amazing! Thanks!