National Financial Reporting Authority (NFRA), the regulatory body for auditors of listed and large companies, announced a seven-year ban on former Deloitte CEO Udayan Sen from undertaking any audit work, holding him guilty of “professional misconduct” in audit of the accounts of IL&FS Financial Services (IFIN). Sen, who was the engagement partner, also faces a penalty of Rs 25,00,000 for the irregularities. IFIN is part of beleaguered IL&FS group, where massive financial irregularities came to light in late 2018, prompting the government to supersede the management and order investigations. The execution of the order, however, depends on a case in the Delhi high court, where Sen has challenged NFRA’s jurisdiction, with the case slated to be heard on July 31. “As a professional accounting firm we are surprised and concerned that the NFRA has chosen to issue and make public an order against a former partner of the firm, in spite of the question of its jurisdiction being sub-judice and awaiting adjudication and disposal by the hon’ble Delhi high court,” Deloitte India said. In its 88-page order, the agency relied on provisions of the Companies Act to hold Sen guilty. NFRA chairman R Sridharan and member Prasenjit Mukherjee noted that there was a “serious lapse” in discharge of duty by Sen, who is a chartered accountant.
Apple starts making iPhone 11 in India
Apple is growing its engagement in India and has started to manufacture its top-of-the-line iPhone11 smartphone, at a time when the government is aggressively pushing ‘’Make in India’ and offering incentives to attract new investments. As the US-China tension worsens, the world’s largest electronics seller has widened its India-made product profile and is preparing for exporting devices from the country. Apple is preparing for large-scale manufacturing here, amid slowing operations in China, say analysts. Taiwan’s Foxconn has lined up $1-billion fresh investment in India and other partners are also boosting investments. Currently, Wistron and Foxconn - Apple’s two largest contract manufacturing partners - are making in India, and now a third one, Pegatron, is also setting foot in the country. The manufacturing of iPhone 11 is an indication that quality levels of India-made goods are on a par with those manufactured in China, though cost may still be somewhat more. However, with the government looking at ‘Make in India’ through schemes such as the £5 billion Production-Linked Incentive (that attracts manufacturers as well as suppliers of parts), this engagement may deepen further. iPhone 11 is the fifth model of smartphone that Apple is now manufacturing in the country.
IndiGo top brass to get less pay
IndiGo has decided reduce the pay of its top management executives and pilots by 15-35% from September 1 after deciding to lay off 10% of almost 25,000 employees to tide over the lockdown crisis. IndiGo CEO Ronojoy Dutta wrote in an email to employees: “I will increase my personal pay cut percentage to 35%. I am asking all senior VPs and above to take a 30% pay cut, all pilots will see their pay cut percentages increased to 28%, all VPs will take a 25% pay cut and associate VPs will take a 15% pay cut… To cushion the impact among lower-paid employees, this time around, we will increase the pay cut percentages only among the very top at the pyramid.” IndiGo - the only airline with cash reserves - has gone in for a round of salary cut; leave without pay (LWP) and two pay cuts for pilots amid the pandemic. Before the latest round, Dutta took a 25% cut in salaries, senior VPs 20%; VPs 15% and associate VPs 10%. In May, IndiGo had also cut the salaries of B and D employees and cabin crew members by 10%, and of B and C employees by 5%.
Ambani becomes 5th richest person
Reliance Industries chairman Mukesh Ambani became the fifth-richest person in the world, according to the Forbes real-time billionaires list. Ambani’s net worth increased by over $1 billion to $75 billion as RIL’s stock touched a new high of Rs 2,010. Ambani overtook Oracle co-founder Larry Ellison to the fifth spot and is just behind Facebook CEO Mark Zuckerberg, whose wealth is pegged at $88 billion.
