PFS hires forensic auditor to probe lapses
Premium- The appointment of the auditor comes at a time Sebi and the MCA have taken note of the issues at the firm
NEW DELHI : PTC India Financial Services Ltd (PFS) has appointed a forensic auditor to look into alleged governance lapses flagged by former independent directors.
“This is to inform that as a part of good corporate governance, the company has appointed CNK & Associates LLP (Chartered Accountants) to carry out the third-party independent forensic audit of inter-alia the issues highlighted by the ex. independent directors," PFS said in a regulatory filing on Thursday.
Forensic audit goes deeper into the records of companies and is more akin to an investigation meant to detect any irregularity, unlike statutory audit, which is a compliance requirement, and is meant to certify that the financial statements reflect a true picture of the affairs of a company.
The appointment of the forensic auditor comes at a time capital market regulator Securities and Exchange Board of India (Sebi) and the ministry of corporate affairs (MCA) have taken note of the issues raised by three independent directors who recently quit alleging “instances of serious lapses in corporate governance" in PFS. In addition, Rakesh Kacker, a former bureaucrat, too stepped down as an independent director from the board of PTC India, also citing alleged corporate misgovernance in the non-bank lender.
PTC India chairman and managing director Rajib K. Mishra had in an earlier press meet termed the allegations by the three independent directors of PFS as an attempt to “malign" the company and questioned the timing and intent behind their resignations.
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Regulatory agencies take feedback from independent regulators seriously given their role as the gate keepers of good governance in the company.