IL&FS Investment Managers, in a statement to the National Stock Exchange of India, reports that KPMG network firm BSR & Associates had resigned as statutory auditor to the company. In its resignation, BSR said: The firm has re-evaluated the client continuation of the company. As a part of this re-evaluation, the firm has considered recent developments, including actions and investigations initiated by various regulatory authorities in relation to Infrastructure Leasing & Financial Services Limited (IL&FS) and its affiliated companies.”
Following this review, BSR expressed its ‘inability to continue as statutory auditors of the company with immediate effect’.
Local press reports in India say the move follows just one day after BSR & Associates had resigned as statutory auditor of IL&FS Financial Services. It seems unlikely that these resignations will have any impact on the ongoing investigations although BSR & Associates has said that it will continue to defend itself in the National Company Law Tribunal.
