IL&FS Fin Services: NFRA finds lapses in 2017-18 statutory audit

New Delhi: The National Financial Reporting Authority (NFRA) has found various lapses in the statutory audit of IL&FS Financial Services Limited for 2017-18 that was done by BSR & Associates LLP.

NFRA has issued the Audit Quality Review Report (AQRR) of the Statutory Audit for the year 2017-18 of IL&FS Financial Services Ltd (IFIN).

"The instances of failure to comply with the requirements of the Standards of Auditing (SAs) by BSR are significant," a release issued by the the Ministry of Corporate Affairs said on Monday.

NFRA comes under the Ministry of Corporate Affairs.

As per the release, BSR did not have adequate justification for issuing the audit report asserting that the

audit was conducted in accordance with the Standards of Auditing.

"NFRA has concluded in this AQRR that the appointment of BSR as the statutory auditors of IFIN was ab initio illegal and void," the release said.

Further, NFRA found that the IT processes/platform used by BSR have deficiencies that are systemic and structural in nature.

NFRA would also examine whether disciplinary proceedings need to be initiated in connection with the AQRR, the release said.

IFIN is part of IL&FS group where financial irregularities came to light in late 2018 and the ministry had also superseded the IL&FS board.