Debt-ridden IL&FS statutory auditor SRBC & Co resigns

Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has said its statutory auditor SRBC & Co has resigned with effect from September 28, 2021.

"M/s SRBC and Co. LLP will be ineligible to continue as auditors of the Company for the financial year 2021-22 beyond September 30, 2021 having completed audits for three years," IL&FS said in a stock exchange filing.

The National Financial Reporting Authority (NFRA) had earlier found serious lapses in the statutory audit of IL&FS Transportation Networks Ltd (ITNL), a subsidiary of IL&FS, for the 2017-18 fiscal, including that the company's losses were understated by at least Rs 2,021 crore.

The statutory audit was conducted by SRBC & Co LLP.

IL&FS further said the company has approved the appointment of CNK Associates LLP as statutory auditor for FY 2021-22.

SRBC, in a statement, said it was appointed as the statutory auditor of IL&FS in September 2017 and has already served for a continuous period of three years.

As per the new RBI guidelines, this makes SRBC ineligible to continue as the statutory auditor of the company beyond September 30, 2021, it said.