The auditors were grossly negligent and failed to apply professional scepticism and due diligence sufficiently and adequately to challenge the management, it added.
The National Financial Reporting Authority (NFRA) has levied fines totalling Rs 15 lakh on two auditors, including an audit firm for lapses in connection with the audit of Lexus Granito India Ltd for 2017-18 to 2019-20. Besides, the regulator also debarred Rahul Jangir the engagement partner (EP) of Ashok Holani & Co for a period of three years from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate.
Individually, NFRA levied a fine of Rs 10 lakh on the audit firm Ashok Holani & Co and Rs 5 lakh on Jangir. The order came after the regulator received information from Sebi in August 2021, about its investigation in the accounting irregularities of the company. Thereafter, NFRA initiated an investigation and found the auditors prima facie guilty of professional misconduct and issued a show cause notice to them in December 2022.
In its order on Wednesday, the regulator found that Lexus…
