The National Financial Reporting Authority (NFRA) has found major lapses in the audit of IL&FS Transportation Networks Ltd (ITNL) for FY18, conducted by EY network firm SRBC and Co LLP. The audit quality report found that ITNL's losses for FY18 were understated by at least Rs 2,021 crore and that its financial statements did not appropriately value the Rs 3,346-crore exposure to its subsidiaries, associates and joint ventures. The report also found that the appointment of SRBC and Co LLP as statutory auditor of ITNL was illegal, as firms related to the auditor had provided management and other non-audit services that they are prohibited from providing to their clients to ITNL in the relevant period
The National Financial Reporting Authority (NFRA) has found that the initial appointment of the audit firm and its continuation as a statutory auditor of IL&FS Transportation Networks (ITNL) was prima facie illegal and void and that the company's losses were understated. The statutory auditor for ITNL for 2017-18 (FY18) was S.R. Batliboi (SRB) & Co. LLP, which uses the EY brand and trademark for obtaining and providing audit services and is an independent member firm of Ernst & Young Global. In its audit quality review report, the NFRA has said that ITNL's financial exposure to its subsidiaries, associates, and joint ventures - amounting to Rs 3,346 crore - was not properly valued according to the applicable accounting standards.
The government on Wednesday extended the term of Uday Kotak as non-executive chairman of debt-rid¬den IL&FS group by another six months. The government through a gazette notification extended the term of Kotak, who is also the managing director and chief executive officer of Kotak Mahindra Bank, till April 2, 2022.
The government on Wednesday extended the term of Uday Kotak as non-executive chairman of debt-ridden IL&FS group by another six months. The government through a gazette notification extended the term of Kotak, who is also the managing director and chief executive officer of Kotak Mahindra Bank, till 2 April 2022. The notification was issued by the department of financial services in the ministry of finance dated 21 September.
The Government has extended the term of Kotak Mahindra Bank managing director Uday Kotak as the non-executive chairman of the IL&FS group by six months through April 2, 2022. In a gazette notification, the Department of Financial Services said "..whereas the Central government, on the recommendations of the Reserve Bank of India, has considered it necessary to grant said exemption to Kotak Mahindra Bank Limited for a further period of six months with effect from the 3rd day of October, 2021."
The Government of India through a gazette notification has extended the term of banker Uday Kotak as the non-executive board member & chairman of scam hit Infrastructure Leasing & Financial Services Ltd (IL&FS) for a period of six months till April 2, 2022. His current term through various extensions is scheduled to expire on October 2, 2021.
While the new board of scam-hit Infrastructure Leasing & Financial Services (IL&FS) has made significant progress in the resolution of Rs 99,000 crore plus debt of the company, the government is pushing for a faster resolution to protect value and creditors interests. IL&FS has already addressed Rs 43,600 crore of debt as of May 2021 and indicated that Rs 50,000 crore of estimated recovery is likely to be addressed by September2021.
Oil and Natural Gas Corporation (ONGC) is looking to buy out Infrastructure Leasing & Financial Services' (IL&FS') stake in Mangalore Special Economic Zone (MSEZ) after protracted negotiations. IL&FS holds 50 per cent equity in the company. The deal is likely to be concluded at 'fair value' after ONGC's attempt to buy out the shadow lender's stake in the joint venture (JV) at deep discount failed, said an official.
IL&FS Financial Services has moved the Supreme Court against a show-cause notice issued by market regulator Securities and Exchange Board of India. At the heart of the controversy is whether Sebi has the powers to initiate regulatory action against entities placed under moratorium as per Insolvency Bankruptcy Code (IBC). The case has been admitted by the apex court and a two-member bench comprising Justices Vineet Saran and Dinesh Maheshwari will be hearing it. The matter has been tagged along with another appeal by IL&FS Securities Services where the contention is the same – Sebi has passed orders against entities under the IBC.
Infrastructure Leasing and Financial Services (IL&FS) Tuesday said it has recovered Rs 33.28 crore through the sale of various vehicles, including luxury cars, and moveable fixed assets. The identification of these assets started in December 2018 and auctions were conducted in various phases, the group said.