Deloitte clarified that its inability to commence an audit for the financial year 2022 was due to delays in accessing financial statements and the underlying books of account. They emphasised that there were no instances of non-cooperation, financial irregularities, or fraud on the part of the company. However, as per regulations, resigning auditors are required to inform the authorities about the circumstances surrounding their decision.
Under Section 143 of the Companies Act, if a statutory auditor resigning from an assignment has reason to believe that fraud is occurring within the company, they are obliged to report it to the government. While the Registrar of Companies (RoC) possesses the authority to inspect books of accounts, the ministry deems SFIO suitable for this investigation due to its pool of experts in various disciplines, including accountancy, forensic auditing, information technology, banking, law, capital markets, and taxation.