SRS Ltd audit lapses: NFRA debars auditors for 3 years
Imposes a fine of Rs 3 lakh each on auditors - Pankaj Kumar and Naresh Kumar for professional misconduct and other lapses
New Delhi: The National Financial Reporting Authority (NFRA) has imposed a fine and a three-year ban on two auditors for professional misconduct and other lapses in connection with the audit of SRS Ltd in 2017-18.
In two separate orders, NFRA slapped a fine of Rs 3 lakh each on auditors - Pankaj Kumar and Naresh Kumar, and debarred them for three years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate during the ban period.
The order came after NFRA received a letter from the Serious Fraud Investigation Office (SFIO) which had investigated the affairs of SRS Ltd and the group companies. An investigation by SFIO had revealed that the company and its group companies had presented financial statements containing false statements of debtors and indulged in the malpractice of round-tripping and layering of transactions resulting in inflated purchases and sales.
