Mumbai: The Reserve Bank of India (RBI) on Monday barred SR Batliboi & Company from carrying out statutory audit assignments in commercial banks for one year from April.
"On account of the lapses identified in a statutory audit assignment carried out by the firm, M/s S.R.Batliboi & Co. LLP, Chartered Accountants, it has been decided that RBI will not approve the said firm for carrying out statutory audit assignments in commercial banks for one year starting from April 1, 2019," the RBI said in a press release.
The central bank added that the action taken in the matter has been communicated to the Institute of Chartered Accountants of India.
SR Batliboi is an affiliate of EY, one of the big four audit firms in India. The company had audited accounts of IL&FS.
Currently, it is the auditor of listed firms like Interglobe Aviation, the owner of IndiGo, South Indian Bank and Aavas Financiers.
Shriram Subramaniam, MD, InGovern, a proxy advisory firm, said, “Early warning signs should have been heeded by the auditors and the RBI. The RBI is also responsible for the IL&FS mess and the contingent effect on the debt market.”
The RBI on June 2018 had put in place an enforcement action framework for auditors of banks.
The SFIO has charged the erstwhile top management of the IL&FS group's firm IFIN of forming a "coterie" with its auditors....