July 01, 2019

Reconstituted Board Shortlists Audit Firms To Reopen As Well As Recast Its Books Of IL&FS, IFIN, ITNL For The Past Five Years

[ By Bobby Anthony ]


The reconstituted IL&FS board has shortlisted Indian firms to reopen and recast IL&FS’ books and the job is likely to go to Borkar & Muzumdar and GM Kapadia and Company.

Borkar and Muzumdar might audit IFIN and IL&FS while GM Kapadia might audit ITNL accounts for the past five years from FY13-FY18.

These recommendations have already been shared with the MCA, which in turn is expected to seek the court’s approval.

The development has come after the Supreme Court order on June 4, 2019, allowing the company to reopen and recast past five-year books of accounts to ascertain the extent of irregularities by the erstwhile management.

Incidentally, the NCLAT had already approved the reopening and recasting of accounts of IL&FS and its group companies but it was challenged in the Supreme Court, which was vacated by the court recently.

The board has already announced divestment of various businesses, including roads, which are in various stages of due diligence by companies which participated in the expression of interest process.

Earlier, the reconstituted board had reviewed the progress on divestment of all domestic and overseas assets and decided to constitute a six-member empowered committee to discuss and finalize the asset-wise framework of resolution with lenders.

The board had also decided to allow bidders for toll road assets to jointly monitor traffic data and assess revenue streams.

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