The National Financial Reporting Authority (NFRA) has slapped a Rs 5 lakh fine and a five-year ban on an auditor for professional misconduct in the audit of MAN Industries for 2016-17. The regulator slapped a fine of Rs 5 lakh on Nilesh Chheda, who was the Engagement Partner (EP) for the statutory audit of MAN Industries (India) Ltd (MIIL) for FY17.
It also barred Chheda for five years from undertaking any audit in respect of financial statements or internal audit and activities of any company or corporate.
The order came after NFRA received a letter from Sebi regarding the financial irregularities committed by the company. Thereafter, the regulator initiated action to investigate into professional or other misconduct of the statutory auditor of MIIL.
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In its 30-page order passed on Wednesday, NFRA found the auditor, incorrectly ‘Qualified’ his opinion on consolidated financial statements, stating that they reflected a ‘true and fair view’ except for the non-consolidation of its subsidiary Merino Shelters Pvt Ltd (MSPL).
NFRA contends that this was inaccurate, as the impact of non-consolidation was…
