Infrastructure Leasing and Financial Services Ltd. (IL&FS Ltd.), having over Rs.91,000 crore in debt, faced severe liquidity crisis from August, 2018 onwards. The company defaulted in several debt obligations since then.
The National Company Law Tribunal (NCLT) on October 1, 2018 granted permission to the Centre to take over the board of debt-ridden IL&FS.
Hon’ble NCLT, Mumbai Bench on a petition filed by the Ministry of Corporate Affairs under Section 130 of the Companies Act, 2013, had passed order dated January 1, 2019, whereby directions were issued for reopening of the books and recasting of the financial statements of IL&FS Ltd. (IL&FS), IL&FS Financial Services Limited (IFIN), IL&FS Transportation Networks Limited (ITNL) from the Financial Year 2012-13 to Financial Year 2017-18.
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 Accounting Research Foundation (ICAI ARF) in view of the substantial public interest involved in the matter, requirement to keep the whole exercise independent and investigation being carried out into the affairs of IL&FS and its group/ subsidiary/ associate companies by the Serious Fraud Investigation Office (SFIO).
ICAI ARF, being a section 25 company, can outsource this assignment so that it is over within a reasonable period of time.
About ICAI ARF
ICAI Accounting Research Foundation (ICAI ARF) was established in January, 1999, as a Section 25 company (now section 8 company under the Companies Act, 2013) - a core research body in the areas of accounting, auditing, capital markets, fiscal policies, monetary policies and other related disciplines. Over the years, it has accelerated its work programme as an academy for imparting, spreading and promoting knowledge, learning, education and understanding in the various fields related to the profession of accountancy. The ICAI ARF has undertaken and completed many projects in the past involving basic and applied research. As research is the nucleus of ICAI ARF, all the activities undertaken reinforce the core domain of the ICAI ARF.