National Financial Reporting Authority

Govt may allow NFRA to split audit review and disciplinary functions

Currently, the NFRA executive body is entitled to discharge all functions and duties assigned to the authority as a whole

NFRA gets IndusInd Bank complaint; in talks with RBI to avoid probe overlap

The authority, however, is in talks with the Reserve Bank of India (RBI) to cross-check the investigations, including a forensic audit, that the central bank has conducted so far to avoid duplication

Corp Affairs Min aims to finish probe into Gensol, related cos in 3-5 mnths

The corporate affairs ministry aims to complete the probe into crisis-hit Gensol Engineering Ltd and around 18 other related companies in the next three to five months, a senior official said on Tuesday. Separately, the National Financial Reporting Authority (NFRA) is conducting a preliminary enquiry into Gensol Engineering following a reference from the markets regulator Sebi, NFRA chief Ravneet Kaur said. Gensol Engineering has come under the regulatory scanner for alleged fund diversions and governance lapses, with Sebi, in April, barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. The senior official said that the probe seeks to find everything when things are hot and the aim is to complete the probe into Gensol and around 18 other related companies in the next three to five months. The ministry is implementing the Companies Act, 2013, under which it has various powers to deal with instances of corporate ..

Gensol Engineering case: Now, NFRA joins investigation against promoters

NFRA's domain extends to audit firms of listed companies and unlisted companies with over ₹500 crore paid up capital or ₹1,000 crore annual turnover

We have been able to stabilise auditing as an institution: NFRA Chairperson

Pandey says audit firms have taken corrective steps following the regulator's inspections, which are among the pivots the organisation is working on

BS Manthan: Audit quality has improved in past few years, says NFRA chief

He further added that the regulatory body is not passing disciplinary orders in abundance and is instead focussing on inspections

Supreme Court seeks govt response on NFRA's 'division of functions'

The HC order of February 7 quashed show-cause notices issued by the auditing standards watchdog to audit firms, including Deloitte Haskins & Sells LLP and SRBC & Co LLP

Govt invites applications for NFRA chairperson, three full-time members

The government has invited applications for the posts of chairperson and three full-time members in the National Financial Reporting Authority. The National Financial Reporting Authority (NFRA) is an independent regulatory body overseeing financial reporting and auditing standards in the country. For chairperson, the applicants will be a person of eminence, ability, and integrity with at least 25 years of expertise in accountancy, auditing, finance, or law and for full-time members, they must have at least 20 years of experience in the same fields, according to a release. The chairperson will receive a consolidated monthly salary of Rs 5.62 lakh without house and car or the pay and allowances are equivalent to a secretary to the government of India, as per the NFRA's (Manner of Appointment and other terms and conditions of Service of Chairperson and members) rules. For full-time, members will have the option of drawing either a consolidated monthly salary of Rs 5 lakh or receiving

Delhi HC backs NFRA's powers but questions it on 'division of functions'

The court order was in response to petitions filed by Deloitte Haskins & Sells LLP, SRBC & Co LLP, and several chartered accountants challenging the constitutional validity of NFRA

NFRA looks to enhance communication between auditors and audit panels

The first part of the interaction series draws auditors' attention to potential questions that audit committees or boards of directors may ask regarding accounting estimates and judgements

NFRA flags deficiencies in BSR & Co's audit of related party transactions

The National Financial Reporting Authority (NFRA) has highlighted significant shortcomings in the audit practices of BSR & Co LLP, a KPMG sub-licensee, particularly in related party transactions. The audit regulator's inspection was conducted in August 2024, which reviewed three BSR audit engagements from the FY ending March 2022 and March 2023. In a 13-page inspection report, NFRA found lapses related to auditing standards and compliance with the Companies Act 2013. Among the critical observations were deficiencies in verifying related party transactions. The inspection report also revealed a complex series of transactions initiated by an unnamed company, involving its promoter entity. NFRA noted that the company raised Rs 550 crore through non-convertible debentures (NCDs) and invested Rs 650 crore in compulsorily convertible preference shares (CCPS) of the promoter entity. This transaction was reportedly used to facilitate debt repayment by the promoter entity. NFRA also ...

NFRA board to meet next week: Adoption of new audit rules on agenda

Sources said that the regulator could soon notify the new standards for select entities

Market regulator Sebi directs Embassy Reit to suspend CEO Aravind Maiya

Action after NFRA debarred Maiya for 10 years in a probe related to Coffee Day

ICAI calls for a pause in audit standards revision process by NFRA

The difference of opinion between ICAI and NFRA on the revision of auditing standards in India has come to the fore once again

ISA 600 dispute: NFRA, ICAI can find common ground, says official

The senior official said that ICAI is not opposed to implementing the revised ISA 600 but is trying to figure out the path to do so. ICAI would be taking up this issue in its next council meeting

NFRA imposes Rs 2.5 cr fine on two auditors in Reliance Commercial Fin case

The National Financial Reporting Authority (NFRA) has slapped penalties totalling Rs 2.5 crore on two auditors for professional misconduct and auditing lapses in the Reliance Commercial Finance case for FY2018-19. The audit regulator imposed a fine of Rs 2 crore on Shridhar & Associates and Rs 50 lakh on Ajay Vastani. In addition, the regulator also barred Vastani for 5 years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate. The order came after the corporate affairs ministry informed NFRA that Price Waterhouse & Co Chartered Accountants LLP (PW) had filed a report to the ministry under the Companies Act, 2013. Thereafter, PW resigned as the auditor of RCFL, without issuing an audit report for FY 2018-19. Further, Shridhar & Associates was appointed by the board of directors of RCFL in June 2019 as the statutory auditor of the company. On examination of the audit file of RCFL ...

NFRA slaps fine of Rs 4.5 cr on auditors for Reliance Capital audit lapses

The National Financial Reporting Authority (NFRA) has slapped penalties totalling Rs 4.5 crore on an audit firm and two auditors for professional misconduct for alleged auditing lapses of Reliance Capital's financials in 2018-19. A fine of Rs 3 crore has been imposed on Pathak H D & Associates, Rs 1 crore on Parimal Kumar Jha and Rs 50 lakh on Vishal D Shah. Besides, Jha and Shah have been debarred from taking up audit work for 10 years and 5 years, respectively, according to an order. Jha was the Engagement Partner (EP) and Shah was the Engagement Quality Control Review (EQCR) Partner for the statutory audit of Reliance Capital for 2018-19 fiscal. For 2018-19, the company was jointly audited by Price Waterhouse & Co LLP (PW) and Pathak HD & Associates. PW reported suspected fraud regarding loans and investments amounting to approximately Rs 12,571 crore to some group companies. In the order dated April 12, the NFRA said that despite the reporting of suspected fraud and ...

Auditors must do basic groundwork, not rely too much on AI: NFRA Chairman

If one reads the Companies Act, Code of Ethics, and Standards of Audit and Quality Control in a harmonious manner, then one would not have any confusion about definition of non-audit services, he said

NFRA finds certain lapses in audit quality of Walker Chandiok - Co

The National Financial Reporting Authority (NFRA) on Friday found certain lapses in the auditing-related activities of audit firm Walker Chandiok & Co LLP during detailed audit quality inspections. The regulator initiated an audit quality inspection of Walker Chandiok & Co LLP in December last year and covered various aspects, including a review of firm-wide quality controls to evaluate their adherence to Standards on Quality Control (SQC-1) and review of selected audit documentation of the annual statutory audit of financial statements for the year ended March 31, 2021, as per the order. The regulator has flagged several deficiencies, where the audit firm failed to adhere to some of the prescribed 'client acceptance and continuance' prerequisites, including verifying the client's integrity and recording the resolution of concerns. NFRA observed that there was a discrepancy between the disclosures made by Walker Chandiok & Co LLP (WCCL) and Grant Thornton Bharat LLP (GTBL)

DHFL branch audits: NFRA penalises 18 auditors, debars them for 6-12 months

The National Financial Reporting Authority (NFRA) has imposed penalties on 18 auditors and also debarred them for varying periods for lapses with respect to audits of various branches of housing finance company DHFL. Penalties totalling Rs 18 lakh or Rs 1 lakh each has been imposed on the auditors for their professional misconduct, according to 18 separate orders passed by the regulator. Also, they have been debarred for a period of six months to one year from "being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate". Out of the 18 auditors, 4 have been debarred for 6 months and the remaining 14 auditors have been restrained for 1 year. Following media reports of alleged siphoning of public money of around Rs 31,000 crore and the Enforcement Directorate's reported action in April 2020 on an alleged banking fraud of about Rs 3,700 crore by the