FOUNDATION MAGAZINE FINANCIAL ADVICE STOCKLETTERS PORTFOLIO PMS BOOKS
BUY
PMC Bank: Who Is the Mysterious Auditor Lakdawala & Co?
Sucheta Dalal  and  Yogesh Sapkale 02 October 2019
Investor Interest
Newer revelations on the Punjab and Maharashtra Cooperative Bank (PMC Bank) and releated entities continue to surprise depositors and investors. The latest is the mysterious audit firm Lakdawala & Co, which audited the Bank for FY18-19. Lakdawala & Co has audited PMC Bank and, in its report, has mentioned about doubtful recovery of assets against which a provision of Rs26.82 crore has been made by the Bank. 
 
This morning, the Institute of Chartered Accountants of India (ICAI) issued a press release claiming to have initiated disciplinary action against the firm. Moneylife was told by Mumbai chartered accountants (CA) active in professional CA bodies that they had not come across the firm in their interactions.
 
Brajesh Mishra of Zee News, however, tracked down the firm's office address, only to find it locked and located in a housing society in Borivali with no board or nameplate to indicate its existence.
 
But it now appears that Ladkawala & Co and its CA partner KP Lakdawala (Membership No.035633) may have its fingers in many more dangerously sticky deals which need a full investigation.
 
  
 
Interestingly, there is another firm, Lakdawala & Associates, (ICAI Registration No.105518W) that has audited Talwalkars Lifestyles Ltd (now Talwalkars Healthclubs Ltd) during FY17-18, as per data from the BSE. 
 
KP Lakdawala, who is shown as partner in Lakdawala & Co (auditor of PMC Bank) is shown as proprietor of Lakdawala & Associates in the audit report of Talwalkars Lifestyles.
 
  
 
Lakdawala & Associates has its office at D14, Bansinagar, Off Western Express Highway in Borivali (east) at Mumbai, the same audit report shows. 
 
As per records from LinkedIn, there is one Ketan Lakdawala named as CA at Lakdawala & Associates since January 2009. This Mr Lakdawala had worked with PCH Ansotia & Co (Deloitte, Haskins + Sells) and Deloitte for four years during 1984-1988. However, there is no information about what he was doing between 1988 and 2009 as per LinkedIn records. 
 
The status of Talwalkar Lifestyle’s accounts could be another can of worms and we found that it is already in the process of being investigated. But that will be a separate story and ICAI probably is going to have its work cut out if it is serious about investigating the firm. 
 
As regards PMC Bank, ICAI’s press release suggests that it is clueless about the firm. Yet, the Institute claims it has "...triggered disciplinary mechanism by writing to the concerned Bank and also to all concerned regulatory agencies, the vigilance department of RBI and the commissioner of Maharashtra co-operative societies, requesting them to provide requisite details of their findings related to it along with details of any member or firm alleged to be involved in the said matter."
 
This bland release does not even mention the firm. It says, "ICAI has also written to the statutory auditor of PMC Bank pertaining to financial years 2017-18 and 2018-19 seeking clarification on the matter. ICAI would be actively pursuing the issue with the concerned regulators so as to examine the matter in detail and would also take action through its proactive disciplinary process against any member, if so, found to be involved in the matter," the regulatory body of CAs says.
 
Here’s what Lakdawala certified in its audit report. 
 
 
On Tuesday, Talwalkars Healthclub closed 5% down or at its 52-week low at Rs5.48 on the BSE, while the 30-share Sensex ended the day marginally down at 38,305. 
Comments
vipan shanti sarup
5 years ago
what has the RBI to say about Lakdawala & Co? What about it's own fornesic Auditor...why didn't they spot the lapses pertaining to loans made to HDIL?
Reply
Hanuman Jayanti
5 years ago
If the Auditors ICAI cannot maintain its own list of Auditors, they are should longer be deemed to Hold such a post. ICAI and all Auditors have vested interest and should be de-barred from all posts and be shamed in public.
Reply
Pakshal Katariya
5 years ago
ICAI doesn't allow its members to have specialization in a particular subject & annex the tag, that's why you find lot of CA Firms doing work that they aren't even good in. ICAI must improve its standards, anyway the no. of students have decreased significantly, the situation will get worse.
Reply
Suketu Shah
5 years ago
Vast no of CA's are in such dire conditions that they offer unsolictedly management consultancy,equity consultancy,etc (as if their customers are idiots)to destroy yr wealth.Best is to avoid such CA's like plague and blacklist them.
Reply
nadeem
5 years ago
Auditors are qualified people keeping the common man hidden from scams...!
Reply
AAR
5 years ago
People are getting agitated for every scams. To me the biggest untold scam is LIC. It is the most abused Financial organization. It is running because of perennial inflows from premiums. The day that stops, the scam will come out.
Reply
Nagaraju Bommanahalli
Replied to AAR comment 5 years ago
Yes most of the LIC money invested in fraud companies on the direction of the big political leaders,there share prices touched the bottom level, for example Rs25000crores money invested in IDBI bank by the direction of the great prime Minister,now it value isRs12000 crores,same type in all , prime Minister directed to invest in IDBI to avoid bankruptcy of the banks, this bank gave huge fraud loans to big companies by the direction of the big political leaders,in few years most of the companies Banks become bankruptcy
Reply
Nagaraju Bommanahalli
5 years ago
In India nobody knows how Indian companies are doing fraud from the beginning to last ,for example a big business men will start the company in India as below .His companies actual value is Rs2000crores but with the help of the auditors,Banks,and chartered accountants he made his company s values to RS 6000 crores by book adjustment with bribe and he call IPO that is in share market and collect Rs10000 crores in share market, first he pumped 60%of money to foreign country in the name of business and will deposit most of the money in his name next he will file bankruptcy due to losses and will write off all the loans this is the business doing in India ED is doing drama ICICI Bank chandakochar is well known to all she done huge fraud in ICICI Bank, this drama of enquire is doing from past one year, but still she is not arrested, reasons In this icici bank scam all SEBI auditors ED RBI central government rating agencies big leaders of all parties involved.central government making all efforts to avoid arrest these fellows,if arrested all all foreign country become knows most of the Indian companies running on bogus and take away all foreign investment,then India become bankruptcy.This is well known by central government hence avoiding all efforts to arrest directors of icici bank chandakochar DHFL jetairways Videocon kingfisher airline PNB bank head il@fs etc . wait in few months most of the common people investment in icici bank NBFC PSU banks equity NCD mutul funds become Zero
Even though so much corruption in 95% banks,no arrest of chairman of theses Banks, because in this scam both parties involved, only common people will loose their hard earned money,all political leaders enjoying our money
Reply
A BANERJEE
5 years ago
I can quote several such instancesvof dubious audit report of dubious 'auditors' including ITPs masquerading as 'auditors'.
Reply
KAVIRAJ B PATIL
5 years ago
ICAI like the old MCI is more known for non performance than anything else. However, no one in the govt. is showing interest is cleaning the mess.
Reply
RAMESH VORA
5 years ago
TIME has come for the constitution of authority like SFIO
to investigate all aspects of fraud in coop bank. so far as i know that none of the investigation report on the fraud investigation reports are made public. . Very few instances are come to my knowledge for the concerted time bound action against perpetrator of the culprits. lacdiacsical attitude will not go long way to restore the faith of shareholders and depositors of coop bank.What TAFCUB is doing in this regard.
Reply
RAMESH VORA
5 years ago
Who will be responsible is a big question today. No one will own up the present position of the bank. RBI started throwing responsibility on Central Registrar, Ministry of Agriculture and Cooperation. Why RTI act is not made applicable to co-op banks? Why RBI is taking consistent stand in Apex court for the secrecy of NPA ACCOUNTS? Refer SC judgement JAYANTILAL MISTRY in the matter. It is eye opener .
Reply
chandrashekar
Replied to RAMESH VORA comment 5 years ago
The fundamental question is "who appointed the audit firm" to audit PMC Coop Bank? Was the Audit firm shortlisted by RBI/ Central Registrar of Coop Societies to audit a SCHEDULED BANK? Or, the Management of PMC just picked up the firm for their convenience? The process, if explained, would be revealing major chinks.
Reply
Ranbir Lamba
5 years ago
Cancel licence & book them
Tainted Auditors

Sell shares of
Talwalkar Lifestyle’s & save skin

Day traders make money by sell mode

accounts could be another can of worms and we discover that it is already in the process of being investigated and unearthed
Reply
Dharam Vir Narang
5 years ago
Audit prooved to be eyewash.
Reply
Dharam Vir Narang
5 years ago
Audit seems to a big joke.
Reply
Gopalakrishnan T V
5 years ago
No governance and no Government seem to be in existence the way frauds and loot take place. The easiest source of loot is banks. With right connections , contacts, one can loot till the greed is satisfied. Public beware.
Reply
View All
Array
  • EDITORS'
    PICKS
  • MOST
    POPULAR
  • MOST
    READ
Free Helpline
Legal Credit
Feedback
Buy Now!

Absolute Power

Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

View Options

The Scam: Now in it's 12th Printing

29 Years Of The Scam: The Perennial Bestseller, reads like a Thriller!
#Scam92: Read the actual story.

Buy Now Gift Know More

Moneylife Online Magazine

Fiercely independent and pro-consumer information on personal finance.

1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Gift Know More

Monthly Digital Access

Fiercely independent and pro-consumer information on personal finance.

30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Buy Now Know More

Full Archive access

Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )

Buy Now

Stockletters in 5 Flavours

Outstanding research that beats mutual funds year after year

Buy Now Know More

MAS: Complete Online Financial Advisory

(Includes Moneylife Online Magazine)

Buy Now Know More
We are listening!
Reset
Success!

To continue

Please

or

With