INSUBCONTINENT EXCLUSIVE:
NFRA said that the listed CDEL provided loans to a related party
| Photo: WikiMedia Commons2 min read Last Updated : Aug 20 2024 | 10:55 AM ISTA regulator has slapped a penalty of Rs 10 crore on audit
firm BSR - Associates LLP and Rs 75 lakh on two chartered accountants for lapses in the audit of Coffee Day Enterprises Limited (CDEL) which
runs the Cafe Coffee Day chain.The National Financial Regulatory Authority (NFRA) barred Aravind Maiya and Amit Somani, partners at BSR -
Associates, for 10 years and five years from being appointed as an auditor or internal auditor or undertaking any audit of financial
statements of any company or body corporate.NFRA said in an order that the auditors did not report fraudulent diversion of funds despite
standard that establishes the responsibilities of principal auditors when utilising the work of other auditors
The BSR auditors said they had relied on the work of auditors of subsidiaries
listed CDEL provided loans to a related party in the garb of an advance for purchases
However, the loan amount was five times the value of purchases and this was not questioned by the auditor for its business rationale.NFRA
started investigating CDEL in 2022 after getting information from the Securities and Exchange Board of India about fund diversion of Rs
3,535 crore from seven subsidiary companies.First Published: Aug 20 2024 | 10:55 AMIST
