Archive for year: 2019
Debut of Section 130 of the Companies Act, 2013
/1 Comment/in Companies Act 2013 /by Vinod Kothari Consultants-NCLT orders recasting of financial statements of ILFS
By Smriti Wadehra (smriti@vinodkothari.com)
Introduction
As the first instance of regulatory recasting of financial statements, the National Company Law Tribunal, Mumbai has directed the reopening of the books of accounts of IL&FS Group (‘Company’) and some of its subsidiaries. The rationale behind such direction is that the Tribunal considers that the accounts of the Company and its specific subsidiaries are fraudulently prepared in the last five years and are not reliable.
The ruling[1] may be a trailblazer as there may be several instances in future of either voluntary recasting or regulatory recasting of financial statement. This article is a general discussion of the law and the global practice in this regard.
