Mumbai: The Reserve Bank of India (RBI) on Monday barred auditing firm S.R. Batliboi & Company from handing audits in commercial banks for a period of one-year starting April 1, 2019.
The action has been taken for lapses in a statutory audit assignment, the RBI said in a statement. The apex bank had put in place an enforcement action framework.
"In terms of the aforesaid enforcement action framework, 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 (ICAI Firm Registration Number: 301003E), 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 April 1, 2019," the statement said.
S.R. Batliboi & Co is an affiliate of Ernst & Young (EY), one of the big four audit firms in India. The company had audited the accounts of Infrastructure Leasing & Financial Services (IL&FS). Besides, the firm is also the auditor of Interglobe Aviation, the owner of India's largest airline IndiGo, South Indian Bank and Aavas Financiers.
The Reserve Bank said that the action taken has been communicated to the Institute of Chartered Accountants of India.
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