IL&FS defaulted on payments in 2018. The financial crisis at the non-bank finance group came to the fore in July that year, when its subsidiary ITNL reported difficulties in making payments on bonds due. The government then replaced the company’s board with members nominated by it. The companies are facing scrutiny by their past management and authorities for alleged financial irregularities.
A senior official with knowledge of the matter said the account reconstruction exercise at ITNL is central to ascertaining the exact quantum of the fraud.
Another subsidiary, IL&FS Financial Services (IFIN), has substantially completed the restructuring of accounts and audit for the financial years 2014-2018. But these have not been finalized yet, as the reworked financial statements for ITNL need to be taken into account in the new financial statements of IL&FS and IFIN as well, as both have loans and investments in ITNL. has substantial exposure, as stated in the IL&FS application filed earlier. National Company Law Appellate Tribunal This week. The accountants and auditors in practice at ITNL have not yet agreed on the language contained in the notes and other disclosures in ITNL’s financial statements.
As per the filing, the entire recasting exercise is likely to be completed in January.
IL&FS spokesperson when reached for comment Sharad Goyal “The process is on and is likely to be completed soon,” he told ET.