Mumbai, Jul 9 (IANS): With BSR & Associates resigning as the statutory auditor of IL&FS Financial Services (IFIN) after the Corporate Affairs Ministry (CAM) sought a ban on its audit operations, the board of directors of the company has recommended the appointment of Mukund M Chitale & Co as the new auditor.

The appointment of the new auditor should be approved by the company at a general meeting convened within three months of the recommendation of the board and the new auditor would hold the office till the conclusion of the next annual general meeting, IFIN said in a statement.

The statement signed by IFIN Director C.S. Rajan said: "Based on the recommendation of the Audit Committee and the confirmation received from Mukund M Chitale & Co with respect to their eligibility to be appointed as Statutory Auditors, the board recommends that Mukund M Chitale & Co be appointed as the Statutory Auditors of the Company, effective June 19, 2019, to fill the casual vacancy caused by the resignation of BSR & Associates LLP."

"None of the directors, key managerial person(s) of the company including their relatives are, in any way, concerned or deemed to be interested in the proposed Resolution," it added.

KPMG arm BSR & Associates resigned as the auditor in June days after the Ministry of Corporate Affairs moved the National Company Law Tribunal (NCLT) seeking a ban on the auditor along with Deloitte Haskins & Sells from audit practices.

Investigation into the IL&FS fiasco has found both the audit firms and rating agencies to have covered up massive mismanagement and wrongdoings by people in the previous IL&FS management.