RBI Bars Auditor SR Batliboi & Co from Bank Audits
The Reserve Bank of India (RBI) on Monday barred auditing firm SR Batliboi & Company from handing audits in commercial banks for a period of one-year starting 1 April, 2019.
The action has been taken for lapses in a statutory audit assignment, RBI said in a statement. The apex bank had put in place an enforcement action framework.
"In terms of the aforesaid enforcement action framework, on account of the lapses identified in a statutory audit assignment carried out by the firm, M/s SR Batliboi & Co LLP, Chartered Accountants (ICAI Firm Registration Number: 301003E), it has been decided that RBI will not approve the said firm for carrying out statutory audit assignments in commercial banks for one year starting April 1, 2019," the statement said.
S.R. Batliboi & Co is an affiliate of Ernst & Young (EY), one of the big four audit firms in India. The company had audited the accounts of Infrastructure Leasing & Financial Services (IL&FS). Besides, the firm is also the auditor of Interglobe Aviation, the owner of India's largest airline IndiGo, South Indian Bank and Aavas Financiers.
RBI said that the action taken has been communicated to the Institute of Chartered Accountants of India.
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Prakash Bhate
2 years ago
It is a pity that while the armed forces continue to battle Jaish-e-Mohammed and Laskkar-e-Taiba with bullets, home-grown financial terrorists only get rapped on the knuckles and can drive around freely in their Audis and BMWs.
2 years ago
It is high time that the Management Accountants are given a chance and the govt, get them involved in all types of Audits. Their expertise also should be utilized by the govt.
Iyer Siva
2 years ago
It is high time stringent punishments are handed to these fraudsters in auditing assignments. Even the ICAI should invoke rules that cancels their practicing licenses for a decade at least anywhere in the country along with rolling back of audit fees that amassed as well and deposited back into Govt of India Treasury. One can imagine the same old street repeated all over again like that of PWC, when did such a colossal goof up in erstwhile Global Trust Bank and were banned from bank audits for 3 years only to return back to do the same filthy work at SATYAM COMPUTERS. This kind of nominal one year out of audit assignment will not serve any purpose. Shame on these professionals who did injustice to the profession of audit and chartered accountancy discipline itself.
Ashok m Rane
Replied to Iyer Siva comment 2 years ago
Good Demand. I fully support d view.
2 years ago
Alas, I am technocrat in this country. Life would have been much easy, If I would have been a C.A. or ICWA or any degree from commerce stream. Now I understand why all Science stream Professionals leave this country. And why Chartered accountants are not welcome in USA.
Tarun Singhal
Replied to ASHWIN AMRITLAL MEHTA comment 2 years ago
Too simplistic an argument!
Ashok m Rane
2 years ago
Oh Shit! A serious fraud involving thousands of crores has taken place and the concerned Auditing Firm is just getting away with stoppage of one year Bank Audits. This can happen only in India. I always have a doubt that RBI and these people must be having some links. Let every body responsible from the firm be put under bars and take a criminal action and also levy heavy penalty.Unless stringent action is taken, we can never control such things. General Public is just made to believe that some serious action is taken by RBI! We are fooled!!!!
Jibu Marks
2 years ago
Why only for one year?

If such serious lapses were found in their working, RBI should impose much stricter and sterner penalties. Then only the so called professionals will desist from any wrong doings or being accomplice to frauds and malpractices by management of such companies.

Why is RBI not considering the damage they (and of course the wing management) has done to the industry, economy, and retail investors?
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