NEW DELHI: Audit regulator National Financial Reporting Authority (NFRA) has found several audit failures on the part of SRBC & CO LLP in its statutory audit of the books of crisis-ridden IL&FS Transportation Networks Ltd (ITNL) for the financial year 2017-18, including the continuation of SRBC & Co LLP as statutory auditor of ITNL, which it observed was illegal and void.
“The initial appointment of SRBC & Co LLP, and the continuation of SRBC & Co LLP, as statutory auditor of ITNL, was prima facie illegal and void,” the Audit Quality Review Report (AQRR) released on Thursday said.
NFRA has highlighted at least nine major loopholes atleast in its report. ITNL’s financial exposure to its subsidiaries, associates and joint ventures amounting to Rs 3,346 crore was not properly valued as per the applicable Accounting Standards.
Also, the Audit Firm has failed to maintain documents as per auditing standard.