Monday, August 26, 2019
News

First phase of forensic audit on rating agencies complete: IL&FS (Lead)

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Friday, 2019 4:45:05 AM IST
Crisis-hit IL&FS on Thursday said that the first phase of forensic audit of credit rating agencies which have been engaged with the its group companies for the last ten years is complete.

The IL&FS Board had appointed accounting and advisory firm Grant Thornton to conduct the audit, which has submitted its findings in the interim report to IL&FS, the lending company said in a statement.

"The audit evaluates the role of CRAs in rating various debt instruments and facilitating excessive borrowings from money markets across Group companies that eventually led to defaults," it said.

CARE, ICRA, India Ratings and Brickwork have been the main rating agencies for ITNL, IFIN and IL&FS during the period reviewed by Grant Thornton.

Brickwork was introduced in ITNL and IFIN from 2016, replacing CRISIL, during this period under review.

Rating agencies along with audit firms and erstwhile IL&FS management have been under the scanner ever since the crisis came to light with the lending major defaulting on its commercial papers in September last year.

According to an investigation report submitted to the Ministry of Corporate Affairs (MCA) by Serious Fraud Investigation Office (SFIO), the credit rating agencies played major villain in the IL&FS crisis as they adjudged positive and impressive ratings on a regular basis to commercial papers and non-convertible debentures (NCDs) of IL&FS Financial Services (IFIN) despite unhealthy financial condition of the company.

The document shows that several investors who subscribed to the IL&FS' financial arm's NCDs and commercial papers, attributed their decision to invest on the high ratings accorded by the rating agencies.

Interestingly, both Care Ratings and ICRA have of late sent their chiefs on leave until further notice after the recent allegations and investigation.

--IANS rrb/sn/prs

( 300 Words)

2019-07-18-22:50:06 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Growth steps, oil prices set to boost eq...
India needs single corporate tax rate of...
RBI Board meet on Monday to mull over Ja...
BSNL landline turns lifeline for communi...
Delhi to soon implement Swaminathan reco...
Centre responsive to slowdown, but more ...
More...
 
INDIA WORLD ASIA
Andhra official quits TTD panel over par...
Andhra Chief Minister calls Sindhu a 'tr...
Agartala-Delhi direct flight to improve ...
UT Chandigarh to observe one-day state m...
No hike in bus fare in Haryana, clarifie...
Fortify banks along Pak border to stop f...
More...    
 
 Top Stories
Questions crop up over washed away ... 
Worlds title a dream come true: Man... 
Angelina Jolie feels fighting for b... 
Shawn Mendes apologises over racist... 
Here's how diabetes can elevate can... 
Tej Pratap plays Lord Krishna on Ja... 
TN: Political parties stage protest... 
Modi bats for strengthening India-U...