The Government has ordered an inquiry into the books of Mother Dairy Fruit and Vegetable Private Ltd (MDFVL), a wholly-owned subsidiary of the National Dairy Development Board. Responding to a question in the Rajya Sabha, Minister of State for Finance and Corporate Affairs Anurag Thakur said, "An inquiry under Section 206 of the Companies Act, 2013 was ordered." Section 206 of the Companies Act gives the Registrar of Companies the power to call for information, inspect books and conduct inquiry with respect to any company. Thakur was responding to a question by Manoj Jha on losses of MDFVL in the Rajya Sabha on February 9.
Unfortunately, the book does not provide much new information and heavily relies on already-published material. It is repetitive about IL&FS' "Rs 91,000 crore debt" and other well-documented failings. In addition, it is complicated for someone new to the arcane subject of project financing. But for someone who wants to understand the IL&FS scam, it could be a good start.
The government is set to amend laws to streamline the functioning, especially the disciplinary aspects, of three professional institutes — the Institute of Chartered Accountants of India (ICAI), Institute of Cost and Works Accountants of India (ICWAI) and Institute of Company Secretaries of India (ICSI). A bill to amend relevant provisions of laws governing the three bodies is expected to be introduced during the second half of the budget session of Parliament. The idea is to step up oversight on the three bodies after a committee suggested several changes al-most three years ago. In fact, some of the proposals have been accepted, the legal changes are being undertaken in consultation with the institutes.
Large unlisted companies of systemic importance will soon have to follow more stringent financial reporting requirements like publicly traded companies, under a government notification issued on Friday, which brings into force a Companies Act provision that the government had introduced last year through an amendment. The corporate affairs ministry will frame rules mandating specified unlisted companies to prepare quarterly or biannual financial statements and get them reviewed or audited. At present, unlisted companies only need to prepare annual financial statements.
The historic contraction in India's gross domestic product (GDP) amid the tense border stand-off with a wealthier nuclear- armed neighbour has prompted Union finance minister Nirmala Sitharaman to promise a Budget like no other. To stand true to her words, Sitharaman will have to address five key challenges confronting the Indian economy. Most of them predate covid-19 but have gained urgency after the economic devastation wreaked by the lockdown imposed following the coronavirus outbreak.
Infrastructure Leasing & Financial Services on Friday said the government-constituted board and management has addressed aggregate debt of about Rs 32,000 crore of the bankrupt infrastructure finance group even as the impact of Covid-19 has delayed its targeted recoveries. The group has estimated that it would address total debt of over Rs 56,000 crore out of overall debt of over Rs 99,000 crore by 2021-22.
The board of Infrastructure Leasing & Financial Services (IL&FS) on Friday said it had addressed nearly Rs 32,000 crore of the group's aggregate debt pile of nearly Rs 1 trillion by the end of the December quarter (Q3) of FY21. The board has also received the necessary approvals for its infrastructure investment trust (InvIT), which targets to resolve approximately Rs 13,000 crore of debt, and plans to launch it soon. It has got the Securities and Exchange Board of India (Sebi) registration certificate, approval from the committee of creditors of IL&FS Transportation Networks (ITNL) for transfer of phase-I assets, and green channel notification for Competition Commission of India (CCI) approval for the InvIT.
Infrastructure Leasing and Financial Services Ltd (IL&FS) will launch its infrastructure investment trust (InvIT) soon, converting the outstanding debt owed to banks in 10 road projects into units of the trust. The InvIT has received all necessary approvals for its launch, a press release from the company said. IL&FS has obtained the registration certificate from the Securities and Exchange Board of India and approvals from the committee of creditors of IL&FS Transportation Networks Ltd for the transfer of phase-1 assets and has completed the green channel notification for approval process for the InvIT from the Competition Commission of India. The InvIT will resolve nearly Rs 13,000 crore of outstanding debt.
The new board of IL&FS has addressed stressed debt worth Rs 32,000 crore as of December quarter, and retained the aggregate recoverable debt at over Rs 56,000 crore by FY22. The group maintains its estimates of addressing out of an overall debt of over Rs 99,000 crore (as of October 2018).
The Management and the New Board of IL&FS Limited, as part of its quarterly update on the progress of ongoing Group resolution process, shared that it has as of date, addressed approx. Rs 32,000 crore of aggregate debt of the Group. The Group maintains its estimates of addressing aggregate debt of over Rs 56,000 crore by FY22, out of an overall debt of over Rs 99,000 crore (as of October 2018).