ICAI constitutes High Power Group on IL&FS Matter: Seeks Explanation from Audit Firms

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The Institute of Chartered Accountants of India ( ICAI ) has constituted a High Power Group on Infrastructure Leasing & Financial Services Limited (IL&FS) matter.

Earlier, ICAI had sought an explanation from audit firms that carried out statutory audit works of crisis-hit IL&FS group in the past few years.

The crisis at diversified IL&FS, following loan defaults by some group entities, has raised concerns about liquidity crunch in the financial system. Against this backdrop, the government seized control of the IL&FS board earlier this month.

The group cosists of CA. Shiwaji B. Zaware, Convenor, President-in-Office, Ex-officio, Vice-President-in-Office, Ex-officio, CA. Nilesh S. Vikamsey, Member, CA. Sanjay Kumar Agarwal, Member, CA. Shyam Lal Agarwal, Member, CA. K. Sripriya, Member, Shri Vijay Kumar Jhalani, Member, CA. Ved Jain (Past-President), Member. Dr. Rashmi Goel, Deputy Director would be the Secretary to the aforesaid group.

“Terms of Reference of the High-Power Group would be to study the systemic issues in the IL&FS matter and suggest remedial measures and improvement in the system; and any other matter incidental thereto,” ICAI said.

The Institute has also issued notices to audit firms that conducted statutory audit works of IL&FS group in the past few years.

The institute has also written to the Reserve Bank of India and the Serious Fraud Investigation Office seeking details about IL&FS issue.