Ernst & Young is a big four accounting firm. This professional services firm recorded an annual turnover of more than Rs. 6000 crores in the year 2019. There are more than 375 individuals who are or were associated with the firm as partners. It has a huge network of associated entities.
According to the provisions of the Companies Act, 2013 no foreign company can provide audit services to Indian Companies which are required to get audited by the Companies Act. As EY, Deloitte, KPMG, and PwC are registered in foreign countries were not allowed to do audits in India as per the Companies Act.
Therefore, these firms set up Limited Liability Partnership firms registered in India. They are allowed to provide audit services and are in the capacity of an ‘Affiliate’ of the global audit firms.
The investigation reports of the National Financial Regulatory Authority (NFRA), however, blamed the Auditors of ILF&S for this conflict of interest. The audit firm named in this report is SRBC & Co LLP.
Impact of EY Ban by Banking Regulator
The Reserve Bank of India (RBI) has banned the audit firm SR Batliboi & Co. LLP.
This firm, SR Batliboi is a member firm of EY. SR Batliboi is one of the first big 4 accounting firms to get banned by the banking regulators. RBI banned EY from compromising the audit quality. Now there is a severe impact of the EY Ban in the Audit Domain.
Economic Times had reported that the regulator’s action was linked to the audit of Yes Bank. SR Batliboi audited the financial statement for the fiscal year ended March 2016. These financial statements had thrown up discrepancies in reported bad loans of Yes Bank.
Ernst and Young
In India, S R Batliboi & Co LLP is a Limited Liability Partnership firm incorporated on 01/04/2013. S R BATLIBOI & CO LLP’s identification Number is AAB-4294. Its Registration Number with the Institute of Chartered Accountants of India is 301003E. This firm is the Indian representative of EY in addition to many other Indian firms.
The Email address used by S R Batliboi & Co LLP for communication is kapil.bagadia@in.ey.com.
There are 43 other companies which are using the similar email address containing in.ey.com. These firms are associated with EY directly or indirectly. The report for these companies is available on request. The email id is associated with not only the group companies of EY but is also associated with the other companies which are not part of the EY group.
Its registered address is 22, Camac Street, 3rd Floor, Block-B, Kolkata Kolkata West Bengal 700016 India.
Partner Details of S R Batliboi & Co LLP
- There are 15 individuals associated with the S R Batliboi & Co LLP. These individuals not only include the present partners but also some of the past partners of the firm since its registration with the Registrar of Companies.
- Agrawal Raj Kumar is the oldest partner of the S R Batliboi & Co LLP. He is associated with the firm since 2013 when the firm was incorporated.
- Current Designated Partners of S R Batliboi & Co LLP are
Agrawal Raj Kumar
Sethi Arvind Lal
Soni Sudhir Murlidhar
Gupta Anil
Shrawankumar Jalan
Jayesh Manhar Gandhi
Tridibes Basu
Viren Harshadrai Mehta
Atul Seksaria
Ajay Bansal
When we started writing about the EY ban it was only limited to RBI. Today, the study of EY, its network firms and partners have become the subject of interest for many. To make the process of decrypting the network simple, we have created the resource center where you will find out relevant documents such as financial statements of the firm, names of partners, their interests etc at one place. You can get all the required documents in our resource center.
EY Network Firms
SR Batliboi & Co LLP and S R Batliboi & Associates represent EY Network in India. These are the firms of Chartered Accountants. They are primarily involved in the Audit practice. However, the presence of EY is not limited to only Audit Practice. Following companies in the group are involved in non-audit services
- S R B C & CO LLP
- S R B A & CO LLP
- S R B A & Associates LLP
- ERNST AND YOUNG INDIA PRIVATE LIMITED
- ERNST & YOUNG SERVICES PRIVATE LIMITED
- EY RESTRUCTURING LLP
EY Clients in Financial Services
The ban on EY network firms is only for one year. RBI banned EY, but this ban can not restrict them from auditing the listed clients. EY firms are restricted from performing statutory audits of commercial banks. The ban is likely to have a significant impact on Indian listed banks and finance companies. After all, RBI is the governing agency for the banks and NBFCs.
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In reality, most of the non-banking audit clients of EY will have no impact from the ban. It is not clear whether all the companies in financial services are affected by this decision. In order to assess the impact of the ban, it’s necessary to check the existing clients of the EY group firms. Moreover, these firms have to comply with RBI regulations.
- Bajaj Finance Limited
- Bajaj Housing Finance Limited
- National Trust Housing Finance Limited
- Yuj Home Finance Private Limited
- Au Small Finance Bank Limited
- Equitas Small Finance Bank Limited
- Indiabulls Housing Finance Limited
- Svakarma Finance Private Limited
- Lendingkart Finance Limited
- Electronica Finance Limited
- Axis Finance Limited
- Xander Finance Private Limited
Besides the above list, there are many other clients of EY, and the list of these clients is updated in our post on List of Top 100 Clients of SR Batliboi. This list is updated as of August 2022.
It is important to track the decisions of the various government agencies including the National Financial Reporting Authority and NCLT.
