NERA bars auditors of Reliances Home Finances & Reliance Commerical Finance

National Fiancial Reporting Authority https://nfra.gov.in/ (NFRA) has banned auditors of Reliance Home Finance and Reliances Commerical Finances https://www.reliancemoney.co.in/, including the firms, and also levied a penalty for irregularities in the accounts of two Anil Ambani group of companies in 2018-2019. In both cases , new auditors had been appointed after Price Waterhouse has resigned. Auditor of Reliance Capital https://www.reliancecapital.co.in/About-Reliance-Capital.aspx, another group company, had faced similar action lasst month. Reliance Home Finance https://www.reliancecapital.co.in/Reliance-Home-Finance.aspx auditor Dhiraj & Dheeraj has been fined Rs 1 crore and chartered accountants and partners at the firm Piyush Patni and Pawan Kumar Gupta have been slapped with a monetary penalty and barred for three-five years from taking up aduit assignments. 
 

Reliance Commercial Finance https://www.reliancecapital.co.in/Reliance-Home-Finance.aspx auditor Shridhar & Associates has been handed a Rs 2 crore penalty, while engagement partner Ajay Vastani has been barred for five years and slapped for Rs 50 lakh fine. Suspecting fraud, Price Waterhouse had resigned as the auditor of the company with assets of over Rs 13,000 crore and liabilities, including debt, of Rs 12,623 crore. In the case of Reliance Home Finance, which is a listed entity, PW had resigned, suspecting fraud at the company. Sebi had noted that the new auditor Dhiraj & Dheeraj had issued a qualified opinion for 2018-19 without making adequate disclousres. The audit firm issued a qualified report while it was required to issue a disclaimer or adverese opinion, had the aduit been concluded as per standards of accounting. 

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