BSR & Associates resigns as Auditor of IL&FS Engineering
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BSR & Associates tendered its resignation as one of the joint statutory auditors to IL&FS Engineering and Construction Company ‘with immediate effect’ citing non-receipt of requested information and response to audit matters for audit of the previous fiscal year, among other reasons.
According to the company, it received the resignation letter, dated Jul 14, on Monday. “In terms of the resignation letter dated 14 July 2019, the reasons cited are the 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 it 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 stated in a note to exchanges on Tuesday.
IL&FS Engineering and Construction Company shares closed at Rs 5.13, down 0.39% on Tuesday. BSR & Associates has already tendered its resignation as of IL&FS Financial Services last month even as it faces the possibility of a five-year ban based on an application by the ministry of corporate affairs at the National Company Law Tribunal.
The government has sought removal of the auditors of IL&FS under section 140 (5) of the Companies Act. Under this section, the tribunal can change the auditors of a company, if they have sufficient evidence that the auditors have directly or indirectly acted in a fraudulent manner and appoint new ones in lieu of them. Consequently, the auditors would also then be banned from auditing activities for a period of five years. #casansaar (Source - Finacial Express, Economic Times)
According to the company, it received the resignation letter, dated Jul 14, on Monday. “In terms of the resignation letter dated 14 July 2019, the reasons cited are the 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 it 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 stated in a note to exchanges on Tuesday.
IL&FS Engineering and Construction Company shares closed at Rs 5.13, down 0.39% on Tuesday. BSR & Associates has already tendered its resignation as of IL&FS Financial Services last month even as it faces the possibility of a five-year ban based on an application by the ministry of corporate affairs at the National Company Law Tribunal.
The government has sought removal of the auditors of IL&FS under section 140 (5) of the Companies Act. Under this section, the tribunal can change the auditors of a company, if they have sufficient evidence that the auditors have directly or indirectly acted in a fraudulent manner and appoint new ones in lieu of them. Consequently, the auditors would also then be banned from auditing activities for a period of five years. #casansaar (Source - Finacial Express, Economic Times)
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