INSUBCONTINENT EXCLUSIVE:
remains perched precariously on the high wire over its questionable role in the ILFS audit process, it appears that the Ministry of
Corporate Affairs may invoke section 140 (5) of the Companies Act to debar the firm for alleged malpractice in ILFS accounts
This extreme action is being warranted after Deloitte's alleged misdemeanours and conduct in the ILFS case.This Section essentially looks at
the following:(5) Without prejudice to any action under the provisions of this Act or any other law for the time being in force, the
Tribunal either suo motu or on an application made to it by the Central Government or by any person concerned, if it is satisfied that the
auditor of a company has, whether directly or indirectly, acted in a fraudulent manner or abetted or colluded in any fraud by, or in
relation to, the company or its directors or officers, it may, by order, direct the company to change its auditors.If this were to happen,
scandal stunned corporate India, Securities and Exchange Board of India (Sebi) banned Price Waterhouse (PW) from providing audit services to
listed companies and market intermediaries for two years in the Satyam fraud
Two PW partners were banned for three years
The regulator also imposed a disgorgement of Rs 13.09 crore on Price Waterhouse, and two of its chartered accountants - S Gopalakrishnan and
Further, it said that no listed company or intermediary registered with Sebi to be engaged with any audit firm associated with the PW
network for issuing any certificate with respect to compliance of statutory obligations which Sebi is competent to administer and enforce,
under various laws for a period of two years
spokesperson told IANS: "The investigations on the company IFIN are in progress and we are cooperating fully
to sources, the Group's defaults began in May 2018
The three principal arms of ILFS Group - ILFS, ITNL and IFIN -- according to sources within Deloitte saw SRBC CO (EY) audit two of the firms
in both 2017-18 and 2018-19, namely ILFS and ITNL
Of course, till 2015-16 for many years DHS audited all three Group entities.Trying to maintain distance from the opaque architecture of the
347 subsidiaries - majority of them overseas -- Deloitte has clarified that they were audited by various smaller firms, most of them being
It has also emerged that during the many years that Deloitte was auditing the Group, secured loans were sufficiently collaterised which in
corroborated by the fact that in 2015-16, Piramal Group had proposed to acquire a stake in ILFS at Rs 750 a share after commissioning a
detailed due diligence exercise by KPMG
LIC had at the time bunged in a monkey wrench, saying that the value was too low citing fair value at Rs 1,100.Similarly, Deloitte has
claimed that they did not audit the financial statements of 111 subsidiaries, 36 jointly controlled entities, 11 associates in 2016-17, or
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