New Delhi: The Supreme Court on Tuesday allowed the reopening of books of accounts of Infrastructure Leasing & Financial Services Ltd (IL&FS) and its two units for five years on a plea filed by the Serious Fraud Investigation Office (SFIO) and the new state-appointed management of the group.
Restating the financial statements will make them more trustworthy for investors, at a time the new board led by billionaire banker Uday Kotak is exploring a turnaround of the IL&FS group by inducting new investors.
Restatement of accounts of IL&FS, and its units IL&FS Financial Services Ltd and IL&FS Transportation Networks Ltd, is bound to change the profit and loss figures of the companies as the new statements will have to make provisions for distressed assets that had not been made earlier, a lapse pointed out by SFIO in a charge sheet.
