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Government probe hits IL&FS' plans to carry out asset sales, says report

Government probe hits IL&FS' plans to carry out asset sales, says report

Government probe hits IL&FS' plans to carry out asset sales, says report
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By CNBC-TV18 Oct 3, 2018 9:31:47 AM IST (Published)

With initiation of probe by Serious Fraud Investigation Office (SFIO), it is unlikely that the sales could be carried out before March.

The government's decision to launch a probe against the suspected irregularities in IL&FS may likely hit the board's plans to carry out asset sales, reported Mint.

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The crux of the issue lies with the government's skepticism that IL&FS was misreporting its financial statements, said the report.
“The consolidated financial statement of IL&FS holding company and its subsidiaries, associates and joint ventures projected a picture through highly exaggerated depiction of non-current assets in the form of intangible assets amounting to over Rs 20,000 crores... the high debt stress was clearly visible in the company and its main subsidiaries for the last so many years, but was camouflaged by misrepresentation of facts,” the authorities had stated in a press release.
This means that the future of the firm is highly dependent on the decision that will be taken by the new board. Several new steps, including asset revaluation will have to be carried out and decision regarding whether to retain SBI Capital Markets Ltd as the investment banker will have to be taken, the report added.
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