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BUSINESS UPDATES – 29 JULY

National Financing Report Authority imposed 15lakhs fine on a Deloitte partner

The order came on Tuesday, 28 July 2020 that exposed allegations of professional misconduct by Shrenik Baid, partner at Deloitte and review partner on the IFIN audit. National Financing Report Authority imposed a fine of 15 lakh rupees on Deloitte partner for the misconduct. Adding to it, NFRA also imposed a 5 years ban on a professional auditor of Deloitte Haskins and Sells LLP, which conducted the statutory audit of IFIN for 2017-18. It is the charge of Professional misconduct against Shrenik Baid who was grossly negligent and didn’t disclose the facts and material misstatements known to him in the official financial statements.

The two orders that were issued last week also imposed a fine of rupees 25 lakhs and 7 years ban on former Deloitte CEO, Udayan Sen and a 5 lakh fine and 5 years ban on Rukshad Daruwala, the engagement quality control reviewer in the IFIN audit.

 

Section 144 imposed near Ambala airbase

The Defence Minister of India “Mr Rajnath Singh” welcome Golden Arrow jets as it landed in Haryana city- Ambala. Rajnath Singh said that this fight fighter craft is beginning of a new era in our country’s military history.

Section 144 was imposed near and around airbase of Ambala which prohibited the assembly of people and gathering of people in the roofs of their house to click pictures of the fighter craft and the Indian Air Force team was strictly prohibited confined to 4 nearby villages.

 

IndusInd Bank to raise Rs 3288 Crore

On Tuesday, Private sector bank IndusInd said to raise Rs3,288 crore through a preferential issue of shares to its promoter Hinduja group and other institutional investors.

The Private sector bank on announcing its Q1 results on Tuesday disclosed that a 67.86% decline for June quarter profit, dented by higher provisions. The profit during the quarter declined to 460.40 crores compared to 1432.50 crores reported in the same quarter of 2019. The sudden decline may be happened due to the impact of COVID 19 pandemic.

Net interest income- grew by 16.36% YoY to 3309.19 crores in Q1 over 2843.99 crores for the corresponding quarter last year.

“We have done a stress test end of June. After reviewing the businesses, our slippages will be 92 bps higher than what is normal as a consequence of COVID and our incremental provision cost will be 65 bps against 53 bps which we had said in COVID 1.0. The overall affected number is 1336 crore of which we had made 1206 crore of provision” explained the managing director and chief executive officer of the bank.