Page 14 - Il&fs

After NCLT nod, ICAI arm to reopen books of financially crippled IL&FS

An arm of Institute of Chartered Accountants of India (ICAI) will be reopening the books of the financially crippled infra lender IL&FS. The Mumbai bench of the National Company Law Tribunal (NCLT) had on January 1 directed the reopening of the books and recasting of the financial statements of IL&FS, IL&FS Financial Services, IL&FS Transportation Networks between fiscal years 2012-13 to 2017-18. In view of the substantial public interest involved in the matter, ICAI Accounting Research Foundation (ICAI ARF) will be carrying out the task, an official statement said. The whole exercise will be independent, it said, acknowledging the Serious Fraud Investigation Office (SFIO) is also carrying out an investigation on IL&FS and its group/ subsidiary/associate companies. Being a 'section 25' company, whose purpose is not for profit, ICAI ARF can outsource this assignment so that it is over within a reasonable period of time, the statement added. The NCLT had

GAIL ejects IL&FS from Rs 270-cr pipe laying project due to 'poor' progress

State-owned gas utility GAIL India Wednesday said it has terminated a Rs 270-crore pipe laying contract it had awarded to financially-troubled IL&FS and replaced it with another contractor. The contract was terminated "due to poor project progress driven on account of acute financial crisis," GAIL said in a statement here. GAIL had last year awarded a portion of the 2,655-km of the Pradhan Mantri Urja Ganga project to IL&FS. The project, costing Rs 12,940 crore, originates from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, with branch lines to Bokaro in Jharkhand and Dhamra in Odisha. IL&FS Engineering and Construction Company, a unit of the troubled IL&FS group, had won two contracts last year to lay 160 km in the Dobhi-Durgapur stretch and 100 km in the Bokaro-Angul stretch of the project. Other contractors have the mandate for the remainder of two stretches, which are together about 850 km long. The 260-km pipeline contract to IL&FS was worth about Rs ...

NCLAT asks govt for list of IL&FS firms categorised by financial position

Appoints former SC judge D K Jain as supervisor of resolution process

Govt submits debt resolution plan for IL&FS; ex-SC judge to oversee process

The resolution process will be based on principles enunciated in the Insolvency and Bankruptcy Code.

Make provisions for beleaguered IL&FS exposure: Irdai to insurers

The regulator in September last year had asked insurance companies to declare their exposure, both equity and debt, in the IL&FS group

IL&FS exposure can't be written off, make provisions: Irdai to insurers

Insurance companies will have to make provisions for their exposure to the crippled infra lender IL&FS, industry regulator Irdai said Thursday. The IL&FS group with a debt of over Rs 94,000 crore, has been defaulting on its financial obligations since August and has also borrowed from insurance companies, even though the exact exposure of the industry is not immediately known. Exposure to IL&FS cannot be written off; they will have to make provisions, Irdai chief Subhash Chandra Khuntia told reporters on the sidelines of an event organised by the Insurance Brokers Association without offering any specifics. Khuntia also went public with the watchdogs concerns on the motor insurance service providers, wherein the quantum of commissions given by insurers is higher than the one set by the regulator. Whenever it is coming to our notice, we are taking action. We have also done some focused inspection of some of the service providers, we are watching the market very

Street signs: IL&FS SPV fallout hurts mkt, brokers-exchange meet, and more

The IL&FS subsidiaries have decided to not pay their obligations, citing a National Company Law Appellate Tribunal decision on resolving the debt issue at the parent level

IL&FS crisis: Government to seek special dispensation from Reserve Bank

The sources said efforts to monetise certain assets of IL&FS are progressing and the group is expected to come out of the woods in the next four to five months

NCLT allows former IL&FS directors to withdraw Rs 2 lakh per month

The National Company Law Tribunal (NCLT) has allowed the former directors of the crippled IL&FS Group to withdraw Rs 2 lakh each per month from one of their bank accounts after intimating the the tribunal. The former IL&FS Group directors, except S Rengarajan, who was the managing director and chief executive of IL&FS Securities Services, had on January 16 approached NCLT seeking clarification on bench's December 3, 2018 order restraining them from disposing of or creating any third-party rights on their properties till January 16. In an order dated January 16, the two-member bench of judges VP Singh and Ravikumar Duraisamy said the order of the tribunal was challenged in NCLAT by Rengarajan and the appellate tribunal has allowed the petition to withdraw Rs 2 lakh a month from any one of the bank accounts after intimating the tribunal, they said. But the NCLAT prohibited Rengarajan from withdrawing any further amount from any bank account until further ...

IL&FS causing loss of thousands of crores to provident funds: Report

The most likely to incur losses are the privately-managed retirement funds

NCLAT rebukes Centre, IL&FS for asset sale without supervision

IL&FS has put up road, renewable energy business & other assets on sale

Former SC judge should conduct IL&FS asset sales proceeding, suggests NCLAT

The National Company Law Appellate Tribunal (NCLAT) Friday suggested that all further proceedings for transfer of assets of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) should take place under the supervision of a retired Supreme Court judge. The new management of the IL&FS is considering assets sales to bail out the company from its financial mess and pay back to its lenders over Rs 90,000 crore. "As it appears that a process required to be followed, similar to corporate insolvency resolution process, for the purpose of proper resolution of IL&FS and its subsidiaries," said a two judge bench headed by Justice S J Mukhopadhaya. It further added that in such a case, a Committee of Creditors may be required to be formed for determining liability, feasibility and financial matrix for resolution plan for one or other assets. "Appellate Tribunal will suggest to government and IL&FS to get matter supervised by a retired SC Judge," the bench ...

IL&FS gets over 30 EOIs for sale of its domestic roads vertical

Debt-ridden Infrastructure Leasing & Financial Services (IL&FS) Thursday said it has received than 30 expressions of interest (EOI) for acquiring its stakes in its 22 assets across its domestic road vertical as a part of its asset monetisation plan. "IL&FS has received a strong response to the asset monetisation process for the domestic roads vertical housed under its subsidiary, IL&FS Transportation Networks. More than 30 expressions of interest were received for acquiring IL&FS' interests in its 22 assets across its domestic road vertical," IL&FS Transportation Networks, a group company of the troubled IL&FS group, said in a BSE filing. IL&FS group on December 18, 2018 had initiated the process for asset monetisation. Last date for receipt of EOIs was January 8, 2019. "Eligibility of the received EOIs is being scrutinised. Interest has been received from a mix of strategic and financial players. Qualifying interested bidders will then be invited to ..

RBI asks IL&FS lenders to classify loans to firm as non-performing: Report

While the Reserve Bank of India's decision does not come as a big surprise, it means IL&FS's lenders will have to set aside additional capital to provision for the soured loans

Macquarie interested in buying renewable energy assets of crisis-hit IL&FS

Discussions are at an early stage, and may not result in a deal, people in the know said

Timely data on NBFCs can avoid repeat of IL&FS-type crisis: S C Garg

Following the liquidity crisis in NBFC major IL&FS that began last August, the entire non-banking financial services sector has been passing through a crisis

NCLT allows govt to reopen IL&FS Group's books for the last 5 years

The tribunal gave temporary relief to IL&FS auditors; ICAI proceedings will continue

In a first, NCLT allows govt to reopen ILFS books for the last 5 years

The National Company Law Tribunal Tuesday allowed the corporate affairs ministry to reopen the books of the crippled IL&FS Group and its subsidiaries for the past five years under Section 130 of the Companies Act, to ascertain financial mismanagement. For the first time, the government on December 21, 2018, had invoked the powers under Section 130 of the new Companies Act of 2013 to reopen the books of a company. The government wants to check the balance-sheets of the crippled group and its two listed subsidiaries--ITNL and IL&FS Financial Services for the past five years (FY13-FY18) and the move comes after the Serious Fraud Investigation Office (SFIO) and ICAI reports indicated that the accounts were prepared a fraudulently and negligently in the last five years by the previous management. The statutory bodies including, the the Reserve Bank, the markets watchdog Sebi and the Income Tax Department gave their no objection for restating the accounts. However, ...

IL&FS appoints retired IAS official Bijay Kumar as Deputy Managing Director

The debt-laden company also appointed N Srinivasan as a non-executive director

ICAI says 3 auditors responsible for IL&FS fiasco, sends notices to them

Notices were issued to partners of Deloitte Haskins and Sells, BSR & Associates LLP and SR Batliboi. The auditors have been asked to appear in Kolkata this week for hearing