THE MINISTER OF STATE FOR (SHRI ANURAG SINGH THAKUR)
FINANCE AND CORPORATE AFFAIRS
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(a) : National Financial Reporting Authority (NFRA) has been constituted under Section 132 of Companies Act, 2013 on 01.10.2018. The functions of NFRA are as follows:
(i) make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be;
(ii) monitor and enforce the compliance with accounting standards and auditing standards;
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(iii) oversee the quality of service of the professions associated with ensuring compliance with such standards, and suggest measures required for improvement in quality of service and such other related matters as may be prescribed;
(iv) perform such other functions relating to clauses (a), (b) and (c) as may be prescribed.
The entities under the domain of NFRA have been prescribed in Rule 3 of NFRA Rules 2018.
The said Act and NFRA Rules can be accessed from the Acts & Rules menu in the website of NFRA https://nfra.gov.in
(b) & (c) : NFRA has issued Audit Quality Review Report (AQRR) in respect of audit done by Deloitte Haskins and Sells LLP (Firm Reg. No 117366W/W-100018) of IL&FS Financial Services Limited (IFIN) for the Financial Year 2017-18.
As per the said AQRR the said Audit firm has failed to comply with the requirements of the Standards of Audit. The AQRR report has been uploaded under notifications menu on NFRA website https://nfra.gov.in
Disciplinary action has been taken against the following Chartered Accountants (CAs) in respect of the said Audit.
(i) CA Udayan Sen (Membership No 103884)
(ii) CA ShrenikBaid (Membership No 31220)
(iii) CA RukshadDaruvala (Membership No 111188).
Copy of orders issued have been uploaded under notifications menu on NFRA website. The said orders have presently been stayed by Hon`ble High Court of Delhi.
NFRA has also issued Audit Quality Review (AQR) Report in respect of audit done by BSR & Associates LLP (Firm Reg No 116231W/W-100024) of IL&FS Financial Services Ltd (IFIN) for the Financial Year 2017-18.As per the said AQRR the appointment of the said Audit firm as the statutory auditor of IL&FS Financial Services Ltd. (IFIN) for the year 2017-18 was illegal, since the said Audit firm was not eligible to be appointed as such auditor. The said Audit firm has also failed to comply with the requirements of the Standards of Audit. The said AQRR report has been uploaded under notifications menu on NFRA website https://nfra.gov.in
(d): Further steps for Monitoring and Compliance of Auditing standards is through Audit Quality Review of Audit Engagements.
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