IL&FS Group Companies and associated Audit Firms

IL&FS Group

IL&FS investigation has become a murky game. Enforcement Agencies, Investigation offices are coming out with the new names and the reputation of many big CA Firms is at stake. According to the media reports there have been many CA Firms which were found to be involved in the IL&FS saga. Curious bankers and CA Fraternity is eager to know the names of the Audit firms associated with the IL&FS group companies.

Regtechtimes did a small study and identified more than 90 companies in IL&FS group and their auditors. These are the auditors who are found to be currently associated with IL&FS group and their tenure is yet to finish. Regtechtimes identified 33 unique Audit firms associated with more than 96 IL&FS entities.

Highlights of Research on IL&FS Auditors

  • Highest number of 14 Companies are Audited by a Delhi based CA Firm Luthra and Luthra LLP. They were auditors for the companies like IL&FS Airports Limited and Amravati Chikhli Expressay Ltd etc.
  • Shah Modi Katudia & Co LLP was found to be associated with more than 11 Companies Associated with IL&FS Auditors. They are auditors of companies like Chattisgarh Highways Development Company Ltd and Gujarat Integrated Maritime Complex Private Limited.
  • It is important to note that more than 25% of the total companies in the IL&FS group are audited by these two firms Luthra & Luthra LLP and Shah Modi Katudia & Co LLP.
  • All the three partners of Shah Modi Katudia & Co LLP are also found to be partners in the Audit firm called Lakhani & Co LLP. This firm Audits 2 more IL&FS companies, taking the total companies audited by the two Audit Firms and their associates to 27. 
  • SRBC & Co LLP is associated with 11 companies. This is the audit firm of EY network. SRBC & Co LLP was banned by Reserve Bank from auditing commercial banks for failing to comply with framework laid down by RBI in the year 2018.
  • RBI Named only one firm of the EY network in the ban. There is another EY network firm with the different name and different Firm Registration Number. This firm name is S R Batliboi and Associates LLP, it is not clear if this firm is also banned by RBI. This firm is found to be associated with IL&FS Tamilnau Power Company Limited.
  • According to the FIR Filed by the Serious Frauds Investigation Office, network firm of KPMG is accused of falsifying the information. BSR & Associates LLP was found to be associated with atleast 8 IL&FS group companies.
  • Deloitte was accused of collusion by the whistleblower in IL&FS case. Deloitte Haskins and Sells was found to be associated with 6 IL&FS group companies was named in the investigation conducted by IL&FS.

Whole Auditing profession is concerned due to these penal actions.