IL&FS Engineering asks bourses to go easy on compliance delays

V Rishi Kumar Hyderabad | Updated on June 26, 2019 Published on June 26, 2019

Citing the ‘special’ circumstances that IL&FS Engineering and Construction Company Ltd is passing through following various processes under the National Company Law Tribunal (NCLT), its management has requested the stock exchanges not to take any coercive action against the company for compliance delays, including the declaration of financial results.

Part of the IL&FS Group, the company, which had acquired Maytas Infra Ltd after the Satyam scam about a decade ago, is now faced with proceedings in the NCLT and its Appellate Authority, and a moratorium on enforcement proceedings under any Act, Court or Tribunal orders has been provided.

In a regulatory filing with the BSE, IL&FS Company Secretary Saheli Banerjee stated, “Since the reconstitution of the board of directors of IL&FS pursuant to the order of the NCLT, multiple changes have been effected and steps undertaken, considering the objective of seeking a resolution to prevent adverse impact on the financial stability. This includes changes in the management, steps to control cash flows, and engaging with advisors in relation to developing plans for resolution. The company and its management have been primarily engaged in these efforts toward implementing the objective of the new board.

“In light of various circumstances, we inform that the finalisation of financial results has been delayed and the company, therefore, is not in a position to submit the financial results for the quarter and year ended March 31, 2019 within the time specified.”

The NCLT, in its order on October 1, 2018, suspended the erstwhile Board of Directors of IL&FS and re-constituted it with persons proposed by the government. The National Company Law Appellate Tribunal, through its order dated January 11, 2019, modified the moratorium.

Now, considering various events and circumstances, including the proposed divestment and restructuring moves in relation to IL&FS and its group companies, IL&FS Engineering has stated that it will be challenging to prepare the financial statements within the prescribed period.

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Published on June 26, 2019
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