The CA Institute’s inquiry against certain statutory auditors of the beleaguered IL&FS Group, including those of IL&FS Ltd and two of its subsidiaries IL&FS Transportation Networks Ltd (ITNL) and IL&FS Financial Services Ltd (IFIN), will be held for the first time next week, a top official said. The hearing will take place in Kolkata.
It may be recalled that this professional body had already declared the signing partners of three top notch Indian audit firms responsible for the statutory audit of these companies as “ primafacie guilty”. Formal communication to the partners of the three firms — Deloitte, Haskins & Sells, BSR & Associates LLP and SR Batliboi — have already been sent.
The first hearing of the investigation is scheduled next week, Naveen Gupta, President, Institute of Chartered Accountants of India (ICAI) told
Gupta also confirmed that the CA Institute has sent a reply to the Corporate Affairs Ministry’s letter seeking details of the ICAI action on the auditors of IL&FS Group.
Currently, disciplinary proceeding can be initiated only against the signing partners or those responsible for the statutory audit work. ICAI has been demanding powers to proceed against errant audit firms. Ashok Haldia, former Secretary, ICAI, said, “Post prima facie held guilty, disciplinary committee would investigate and enquire to adjudicate and if found guilty, award punishment to the erring CAs.”