In the news
28 Sep 2021

IFIN plans to sell 62 NPA accounts of Rs 4,297 cr via Swiss challenge route

IL&FS Financial Services (IFIN). wholly-owned subsidiary of Infrastructure Leasing and Financial Services, on Monday placed 62 non-performing asset (NPA) accounts worth Rs 4.297 crore on sale. The lender said the sale of NPAs will be done through the 'Swiss challenge' route. Under the Swiss challenge method, the highest bid in the first round of bidding becomes the base price for bidders, including for the highest bidder, to place counter-bids in the second round of bidding.

In the news
27 Sep 2021

IL&FS and ITNL Looking to Replace Auditor SRBC & Co

Infrastructure Leasing & Financial Services (IL&FS) and its arm IL&FS Transportation Networks Ltd (ITNL) are evaluating replacement of auditor SRBC & Co, an EY affiliate, as their statutory auditor after a damning audit quality review report by the National Financial Reporting Authority (NFRA). The 343-page NFRA report released on Thursday said SRBC did not raise red flags in critical areas like going concern, evaluation of ITNL's investments and loans. Responding to ET's query, IL&FS said discussions were ongoing around the continuation or otherwise of the auditor, and that the audit committee would soon take a call.

In the news
27 Sep 2021

NFRA’s R Sridharan: Loose drafting of law and muddle-headed thinking have led to regulatory capture

Last week, the National Financial Reporting Authority (NFRA) released an extensive audit quality review report on the statutory audit of IL&FS Transportation Networks Limited (ITNL) done by SRBC & Co LLP, an EY network firm. A day before the hard-hitting report was published, R Sridharan, the chairperson of the regulatory body, took time out to speak to ET Prime at his office on the seventh floor of HT House, in New Delhi. In a freewheeling interview, his first, Sridharan spoke on a wide gamut of issues including his early struggles while building the regulator from scratch, fighting regulatory capture by the Institute of Chartered Accountants of India (ICAI), the controversies over the technical advisory committee (TAC) and the road ahead for the regulator.

In the news
24 Sep 2021

NFRA pulls up SRBC & Co, part of EY India for ITNL audit

Audit regulator National Financial Reporting Authority (NFRA) in its audit quality review report in the case of IL&FS Transportation Networks Limited (ITNL) has pulled up the auditor, SRBC & Co, part of EY India network, and said that appointment of the firm was “illegal and void” under the standards of auditing (SAs). NFRA, part of the Ministry of Corporate Affairs (MCA), in a 343-page report on Thursday said that the audit firm did not issue proper red flags in critical areas like going concern, evaluation of ITNL’s investments and loans among other things.

In the news
24 Sep 2021

NFRA finds lapses in ITNL audit: FY18 losses 'understated by at least Rs 2,021 cr'

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

In the news
24 Sep 2021

NFRA finds big gaps in audit of IL&FS arm

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.

In the news
23 Sep 2021

CENTRE EXTENDS UDAY KOTAK'S TERM AS IL&FS CHAIR BY 6 MTHS

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.

In the news
23 Sep 2021

Kotak to continue as IL&FS chairman

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.

In the news
23 Sep 2021

Uday Kotak's tenure at IL&FS helm extended by six months

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."

In the news
22 Sep 2021

Govt extends Uday Kotak’s term at IL&FS for another 6 months

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.

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