IL&FS scam: Audit firm noted lapses by IFIN but looked the other way


IL&FS scam: Audit firm noted lapses by IFIN but looked the other way

The investigation by the Serious Fraud Investigation Office (SFIO) into the affairs of IL&FS Financial Services (IFIN), which is the basis on which the ministry of corporate affairs has filed a chargesheet in a Mumbai court against the company management, found that BSR & Associates, an affiliate of KPMG, which was IFIN’s auditor, had on May 2018 raised queries about at least 17 of the company’s loan facilities being used for evergreening but ultimately never highlighted it in their report.

As is known, the MCA has also moved the Mumbai bench of the National Company Law Tribunal seeking a five-year ban on BSR & Associates and Deloitte Haskin & Sells for failing to do their statutory duty as auditors.

BSR & Associates along with Deloitte Haskin & Sells were auditors for IFIN in FY18 and in FY19 BSR was the sole auditor. Read more

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