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Last Updated : Oct 12, 2018 07:02 PM IST | Source: PTI

IL&FS board appoints nominee directors for subsidiaries; initiates austerity measures

It also approved formation of a core operating committee under Vineet Nayyar, who is also the vice-chairman and managing director of IL&FS.

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The newly appointed board of cash-strapped Infrastructure Leasing and Financial Services (IL&FS) in its second meeting on October 12 appointed nominee directors for eight of its subsidiaries.

The six-member board, headed by veteran banker Uday Kotak, also announced several austerity measures related to personnel and operating expenses.

"As permitted by the order dated October 9, 2018 of the NCLT, the board has initiated the replacement of its nominee directors on various subsidiaries of IL&FS Ltd," the company said in a statement after the meeting.

The board has nominated directors from among the present board members - former Sebi chairman GN Bajpai, ICICI Bank non-executive chairman GC Chaturvedi, IAS officer and the director general of shipping Malini Shankar and Vineet Nayyar, veteran auditor Nandkishore and CS Rajan, former chief secretary of Rajasthan - based on the recommendations of the Nominations and Remuneration Committee.

It has appointed Nayyar, Kishore and Shankar as the nominees on IL&FS Financial Services. The new nominees on IL&FS Transportation Networks are Nayyar and Rajan.

Kishore will be the nominee on IL&FS Environmental Infrastructure & Services and IL&FS Technologies.

The new nominees on IL&FS Energy Development are Chaturvedi and Nayyar.

The board appointed Shankar as the nominee on Tamil Nadu Water Investment Company (TWIC).

Pursuant to the recommendations of the audit committee, which is headed by Kishore, the board required a full audit of the standalone and consolidated accounts as on September 30, 2018.

It also approved formation of a core operating committee under Nayyar, who is also the vice-chairman and managing director of IL&FS.

During the Friday's meeting, the board had detailed deliberations in relation to the roadmap ahead, the statement said.

The firm and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. It needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

The company as of March 2018 owed over Rs 91,000 crore to banks and other creditors.

On October 1, the government superseded the board of IL&FS and appointed a new board, with Kotak as its executive chairman.

Speaking to reporters after the first board meeting last week, Kotak had hinted that the crisis at the infra lending and engineering conglomerate was much more complex than earlier thought as the number of its subsidiaries and associates have more than doubled to 348.
First Published on Oct 12, 2018 06:51 pm
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