The CA Institute has sent a show cause notice to BSR & Associates LLP (BSR), one of the statutory auditors of ILFS Financial Services (IFIN), which is controlled by crisis-ridden Infrastructure Leasing and Financial Services (IL&FS).
Global network KPMG conducts audit in India through BSR, an Indian audit firm. The show cause notice is a suo motu action of the CA Institute, based on media reports related to the recent developments at IL&FS, said sources in the professional body.
The notice is for audit work related to IFIN’s financial year 2017-18. BSR is understood to have undertaken the joint audit with Deloitte Haskins & Sells for this year.
It may be recalled that the CA Institute had, on October 9, issued show cause notices to IL&FS’ statutory auditors – Deloitte, Haskins & Sells, and SR Batliboi – for different financial years.
Meanwhile, the Serious Fraud Investigation Office (SFIO) has turned down CA Institute’s request to share IL&FS-related information available with the investigation agency. Even the CA Institute’s letter to Uday Kotak, Chairman of the new IL&FS board, seeking information on IL&FS Group auditors/directors, did not bear fruit.
IL&FS recently wrote to the CA Institute expressing the inability of Uday Kotak in sharing information about IL&FS with the CA Institute, sources said.