BSR & Associates quits as IL&FS Engineering's auditor

Last Updated: Wed, Jul 17, 2019 10:29 hrs
A logo of IL&FS (Infrastructure Leasing and Financial Services Ltd.) is seen on a building at its headquarters in Mumbai

New Delhi: Nearly a month after resigning as the statutory auditors of IL&FS Financial Services (IFIN), BSR & Associates, a KPMG arm, has relinquished its position as one of the auditors of IL&FS Engineering and Construction Company with immediate effect.

IL&FS Engineering in a regulatory filing on July 15 said, the company received the resignation letter from the audit firm.

As per the filing, BSR & Associates attributed its resignation to "non-payment of audit fees for the year ended March 31, 2018 and non-receipt of certain pending information and responses to audit matters as requested by them for the audit for the year ended March 31, 2019, limited reviews for the quarter ended September 30, 2018 and December 31, 2018 and responses to certain queries raised by it."

"The company has received resignation letter from the one of its joint statutory auditors on July 15, letter dated July 14, 2019, viz. BSR & Associates LLP, Chartered Accountants (Firm Registration Number: 116231W/W-100024) stating their intent to not continue as the statuary auditors of the company and tendering their resignation with immediate effect," it said on Tuesday.

The audit firm is under the scanner of the investigative agencies and the Ministry of Corporate Affairs (MCA) pertaining to its supposed role in cover-up of the "wrong-doings" in IL&FS, leading to the ongoing crisis of the lending major.

The MCA in June moved the National Company Law Tribunal (NCLT) seeking a ban on the auditor along with Deloitte Haskins & Sells from audit practices, following which the company resigned as the auditor of IFIN.