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The newly appointed Board of IL&FS is toying with the idea of appointing a forensic auditor to look into the books of the IL&FS Group and its subsidiaries for the past five years so as to ascertain the nature and quantum of financial mismanagement.
Grant Thornton, a professional services firm, is a frontrunner and may soon bag this mandate, sources said.
Meanwhile, the Central Council of the CA Institute is not in favour of allowing it's research arm Accounting Research Foundation (ICAI ARF) to take up the task of reopening the books of accounts of IL&FS and two of its subsidiaries--IL&FS Transportation Network and IL&FS Financial Services--for the past five years.
ICAI ARF was sounded out on this, but the CA Institute is not in favour because of a legal hitch as the Companies Act stipulated that only a firm of chartered accountants can reopen the books, sources added.
It may be recalled that the Mumbai bench of National Company Law Tribunal (NCLT) had early this year allowed the Government to reopen and recast the accounts of IL&FS and two of its subsidiaries--IL&FS Transportation Network Ltd and IL&FS Financial Services --for the past five years.
IL&FS had accumulated a debt of more than ₹91,000 crore and defaulted on some of its commitments
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