Page 5 - Il&fs Crisis

IL&FS panel to finalise asset-wise framework of resolution with lenders

The six-member committee includes IL&FS board members Vineet Nayyar, C S Ranjan, Bijay Kumar, and the chief operating officer (COO) N Srinivasan among others

IL&FS board sets up sub-committee to oversee disinvestment process

Debt-ridden IL&FS has decided to constitute a sub-committee to oversee the process of divestment of its assets in light of the Reserve Bank of India's June 7 circular which has laid guidelines for resolution of bad loans. The decision to form a sub-panel was taken in its board meeting held on June 28, Infrastructure Leasing & Financial Services Ltd (IL&FS) said in a statement. During the meeting, IL&FS board reviewed the progress on divestment of all domestic and foreign assets outlined in its resolution framework. The board has decided to constitute a six-member empowered committee, including four directors Vineet Nayyar, C S Rajan and Bijay Kumar to discuss and finalise the asset-wise framework of resolution with lenders. The board decided to empower the panel to take necessary steps to enhance enterprise value of assets under divestment. "This committee is formed in view of positive response received from financial institutions to the framework outlined, by Prudent .

BSR & Associates resigns as auditor of IL&FS Financial Services

'We received a notice on May 13 seeking an explanation on our removal as auditors'

BSR quits as auditor of IFIN, says will continue to defend itself in NCLT

Audit firm BSR & Associates LLP Thursday said it has resigned as the auditors of IL&FS Financial Services (IFIN) and will continue to defend itself in the NCLT on petitions filed by the MCA. "We confirm that BSR & Associates LLP has resigned as auditors of IL&FS Financial Services (IFIN) on June 19, 2019. We had received a notice dated May 13, 2019 from the board of directors of IFIN seeking an explanation on our removal as auditors," it said in a statement. BSR said it had filed a written response to the notice from IFIN on May 29. "While IFIN has not communicated its decision to us as yet, we do not intend to impose ourselves as auditors of the company. Our resignation will allow the company to appoint another auditor so that the work on the audit for FY 2019 may progress. "We believe, we have discharged our duties in good faith and have acted in a bona fide manner and we will continue defending ourselves," the audit firm said. A large number of individuals and ...

ED arrests two former IL&FS executives in alleged money laundering case

The ED had registered the enforcement case investigation report (Ecir) on February 19. They will both be presented on Thursday at a special court of PMLA in Mumbai

Govt moves NCLT for 5-year ban on IL&FS Financial Services auditors

The SFIO, in its complaint, has alleged that the auditors were aware that IFIN was lending to defaulting borrowers through group companies

IL&FS top brass hushed up whistleblower's warning of fraud in 2017: Probe

The long-running fraudulent activities at crisis-ridden IL&FS could have come to light much earlier in 2017, but for a cover-up job done by the top management in connivance with the independent directors on a whistleblower complaint, an SFIO investigation has revealed. The detailed probe by the Serious Fraud Investigation Office (SFIO) into the affairs of IL&S Financial Services Ltd (IFIN) has revealed a plethora of lapses, violations, ever-greening of loans, deliberate delay in recoveries and even a whistleblower complaint brushed aside by the then management in 2017. As a multi-pronged strategy continues for revival of the ailing group and to bring to book the perpetrators of the fraud, the earlier audit committee of IFIN has been found at fault on multiple occasions. Analysis of e-mails as also information collected from personnel and other sources have revealed that a whistleblower complaint was received in early 2017, according to officials. However, the audit committee, .

SFIO probe report lists lapses in 13 loans given by IL&FS to ABG group

Due process not followed, ABG group used the money to repay old credit

SFIO probe shows IFIN's exposure to AAA borrowers dropped to zero by 2017

In its first charge sheet filed against the group, the SFIO found gross violations by the company while doing credit appraisal and monitoring

IFIN violated RBI norms to help Sivasankaran pay off IFCI loan: SFIO

The management of IL&FS then allegedly colluded with Sivasankaran to create a unique structure

Probe nails IL&FS management 'who ran business as personal fiefdom'

Officials also said it is just a tip of the iceberg in this massive fraud case, involving defaults totalling an estimated amount of over Rs 90,000 crore

Sale of business verticals most feasible option, says new IL&FS board

Proposed resolution framework will be based on the principles of Insolvency and Bankruptcy Code, says new IL&FS board

Sale of 10 IL&FS firms underway; board to use asset level resolution: Govt

The resolution process for 10 profitable IL&FS group companies, having total debt of Rs 11,564 crore, is underway, the government informed the National Company Law Appellate Tribunal on Tuesday. The board IL&FS, which has to repay over Rs 90,000 crore to lenders, has decided to adopt an "asset level resolution" with regard to various group companies and entities. The directors of IL&FS have contemplated that "an asset level resolution and the sale of business verticals comprising of a basket of companies and other entities" is the most feasible option for the resolution of the debt of the company. State-run GAIL has emerged as the highest bidder with offer of Rs 4,800 crore for IL&FS Wind Energy Ltd (IWEL), which has seven operating wind power plants. "Final bids received. GAIL India Ltd has emerged as the highest bidder," the affidavit said. The ministry also said Japan-based Orix Corporation, which has 49 per cent stake in each of the seven projects, has expressed ...

Japan's ORIX Corp offers to match GAIL's bid for IL&FS Wind Energy

ORIX owns 49 per cent stake in IL&FS' wind portfolio, and GAIL has emerged the highest bidder for the remaining 51 per cent stake in these assets

IL&FS crisis: Independent directors under corp affairs ministry scanner

The role of auditors, credit rating agencies and some former officials entities are already being looked into by the ministry, which had superseded the IL&FS board in October 2018

Accounting scandals: Big 4 audit firms face unprecedented crisis in India

The auditors are hitting back, saying there is so much blame on auditors that they are questioning internally whether it makes sense for them to keep auditing Indian companies

Resolution on track, Rs 12,000-cr debt may be settled by July: MCA secy

Loan exposure worth Rs 12,000 crore of almost 55 green companies of crisis-hit IL&FS group is likely to be settled by July end, a senior government official said as he asserted that the resolution process is on track. Besides, many of the green companies have positive equity which means that after settling debt obligations, shareholders would "get something in return for their equity stake", Corporate Affairs Secretary Injeti Srinivas said. The board of diversified IL&FS group, which is estimated to have a debt burden of over Rs 94,000 crore, was superseded by the corporate affairs ministry in October last year. Since then, the National Company Law Tribunal (NCLT)-appointed board is managing the affairs to ensure orderly settlement. As part of the resolution efforts, the group companies have been classified into three categories, mainly based on their financial positions -- green, amber and red. Srinivas said the IL&FS resolution process is on track and expects to reach ...

IL&FS auditors have many questions to answer, says Corp Affairs Secy

As the probe continues into the IL&FS case, a senior government official has said the group's auditors have "many questions to answer" prima facie as they are supposed to act as "gatekeepers" and detect widespread irregularities, but it will be premature to pass any judgement at this stage. "We are not expecting an auditor to detect a needle in a haystack, but if an elephant is in a room they ought to find it. That is the issue," Corporate Affairs Secretary Injeti Srinivas said. Crisis-hit IL&FS group's debt burden is estimated to be more than Rs 94,000 crore and various entities, including some former officials and auditors, are under the scanner for widespread irregularities and huge loan defaults. "Prima facie, it appears that they (auditors) have many questions to answer in IL&FS. If they are found at fault, action is bound to happen," Srinivas told PTI in an interview. The problems came to light last year after some group companies defaulted on loan repayments ...

NBFC crisis averted, but some troubles persist: HDFC Bank MD Aditya Puri

Last year's defaults by IL&FS exposed fault lines among India's shadow lenders, which had grown rapidly to account for a third of all new loans over the previous three years

Rs 7 trillion of corporate papers downgraded since start of IL&FS fiasco

The IL&FS crisis in September led to panic in markets with liquidity quickly drying up for borrowers, whose business models relied heavily upon debt markets