MUMBAI: A subtle tension is brewing between bankers, struggling with failed borrowers, and auditors, having come under closer scrutiny. Till now auditors who signed the financial statements of banks have rarely questioned the real worth of assets and securities that banks hold to lend. But, this is about to change with auditors coming under the glare of regulators and many Indian defaulting companies headed for a change of ownership and control.
As they begin to scan banks numbers for the quarter ended September 30, auditors will, for the first time, take a hard look at the actual realisable value as against the `book value of assets and securities pledged with banks. If auditors suspect that the realisable value of a borrowers land,…
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