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.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.