Forwarded mail copy as received : Very serious allegations by Chartered Accountant on independence of Auditor.
15th April 2016
To
The AGM Audit
Patna Circle
State Bank of India

Sub:       Death of the Independence of the auditor

Dear Sir,

Our Team for Statutory Branch Auditors while conducting audit of Ramgarh Branch and Patratu Branch (Jharkhand) of State Bank of India witnessed threat to their profession/lives and were forced to attest a NIL MOC report on coercion by the bank management in spite of huge amount of misstated NPA’s ascertained while on audit.

Audit team witnessed several irregularities which warranted reporting in Memorandum of Changes report. But before any such classification, the detail of the account were mailed to the bank authorities I.e.. Chief Manager, Ramgarh and Chief Manager Patratu Branch and copy of which was also marked to Chief Manger Rural, Ranchi and were asked that  “Why such account should not be treated as NPA”.  The quantum of amount of such loan was huge as well we also sought extension of time of audit as sample size fromAGM Audit  as we witnessed various irregularities in sampled cases. 

Audit was conducted on the basis of Sampling and the team decided to increase the sample size but due to limited access and no confirmation from the AGM Audit when asked for vide our mailed dated 12th March 2016, that could not be done.  The respective CM’s were reminded several times for giving the reply. We also asked loan product circulars but were not provided by Chief manager Ramgarh, rather was provided with loan policy. Only things they wanted from us was a clean MOC and what we wanted was the clarification and this was un-necessarily killing our time. We further advised them that your non confirmation could lead us to issue MOC but nothing seems to stop them. They got the report signed by us through threat and coercion and told that they would get us arrested by SP, DC and calling media and many such things. We were house arrested and it was threat on our life as well as death of “INDEPENDENCE
OF AUDITOR

The matters cited above are well documented as per SA230 and evidences are available through audio clips, visuals, mail correspondence and documents.  We thus request you to please allow us to withdraw our report as the report was not under free will and we were made to sign it under life ending threat and coercion and I along with my teammates are still under fear and trauma of Chief managers ( Ramgarh/ Patratu) and Deputy Managers threat. 

Yours Truly,

CA Pawan Kr  Periwal

Chartered Accountant
For M/S P S K & Co.

periwalpawan@gmail.com

CC :

a)      All the Branch Statutory Auditor of Patna Circle

b)      Central Auditor, Patna Circle