The National Financial Reporting Authority (NFRA) has barred another auditor for five years for alleged professional misconduct in the statutory audit of IL&FS Financial Services Ltd (IFIN) for 2017-18. The watchdog has also slapped a fine of Rs 15 lakh on Shrenik Baid, who was a partner in the statutory audit.
Baid is at least the third auditor against whom action has been taken by NFRA in the IFIN matter. Deloitte Haskins and Sells LLP conducted the statutory audit of IFIN for 2017-18.
However, the regulator said its order would not come into force till July 31 due to a Delhi High Court ruling in June. In a 92-page order dated July 28, NFRA has imposed a fine of Rs 15 lakh on Baid.
Besides, Baid has been "debarred for a period five years from being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate".
Last week, NFRA barred two other auditors in the matter. While a seven-year ban was imposed on Udayan Sen, who was an Engagement Partner of Deloitte Haskins and Sells LLP, Rukshad Daruvala was banned for five years. Penalties were also imposed on them.
Daruvala was Engagement Quality Control Reviewer (EQCR) in the statutory audit of IFIN for 2017-18. Like the two others, Baid had also moved the court challenging the jurisdiction of NFRA to look into the matter. The court had passed an order on June 26.
There was no immediate comment from Deloitte. IFIN is part of diversified IL&FS group, where major financial irregularities came to light in 2018 and later, the government had superseded its board.