INSUBCONTINENT EXCLUSIVE:
MUMBAI: Troubled infrastructure developer and lender Infrastructure Leasing Financial Services (ILFS) is looking to appoint an auditor that
will look into audited books of the group and its subsidiaries, said people with direct knowledge of the matter.
Role of EY, Deloitte and
KPMG that audited the group and its subsidiaries would be scrutinised by the new auditor for last five years, they said.
EY, Deloitte, and
KPMG audited the ILFS companies through their Indian affiliates, SR Batliboi Co, Deloitte Haskins Sells, and BSR Company,
with direct knowledge of the matter
to appoint an auditor is in line with National Company Law Tribunal (NCLT) ruling that the books of ILFS and its subsidiaries be reopened
and recast and a separate auditor be appointed.
ILFS spokesperson Sharad Goel refused to comment for the story.
The reopening of books could
executives manipulated or provided wrong figures (to statutory auditors) the option to withdraw the opinions earlier given by the auditors
India, companies prepare the financials, while auditors only look at these figures and provide an opinion about the authenticity and
solvency of the company.
Two separate reports by ICAI (Institute of Chartered Accounts of India) and SFIO (Serious Fraud Investigation
There were definitely liquidity concerns for the ILFS group, but none of that was reflected in the balance sheet, it had said.
ICAI in its
ILFS and its group companies.
Both these statements were vehemently opposed by lawyers representing the three auditors in NCLT.
The comments
and remarks against the auditors can only be made if it is discovered that the accounts have been fraudulent, NCLT had ruled.
