ICAI Accounting Research Foundation to oversee reopening of IL&FS books

The ICAI Accounting Research Foundation (ICAI ARF) will oversee the process of reopening the books of crisis-hit IL&FS.

The board of debt-laden Infrastructure Leasing and Financial Services (IL&FS) was taken over by the corporate affairs ministry last year after many group entities defaulted on their debt obligations.

In a release, the Institute of Chartered Accountants of India (ICAI) Monday said ICAI ARF has been assigned the task of "reopening" of the books of IL&FS.

An official said ICAI ARF, a not-for-profit entity, would oversee the process of reopening the books of IL&FS along with the ministry.

The ICAI ARF can outsource the assignment, so that it is over within a reasonable period of time, the release said.

"It has been agreed to assign the task of reopening of the books and recasting of the financial statements of IL&FS, IFIN and ITNL from financial year 2012-13 to financial year 2017-18 to ICAI ARF," it added.

This has been done in view of the substantial public interest involved in the matter and the requirement to keep the whole exercise independent.

The Serious Fraud Investigation Office (SFIO) is also probing the affairs of the IL&FS group.

The IL&FS group has a total debt of over Rs 91,000 crore.

Last month, the National Company Law Tribunal (NCLT) approved reopening of the books and recasting of the financial statements of IL&FS, IL&FS Financial Services Ltd (IFIN) and IL&FS Transportation Networks Ltd (ITNL) from the 2012-13 to 2017-18.