The newly-appointed board of Infrastructure Leasing and Financial Services (IL&FS) at its second meeting on Friday initiated austerity measures for personnel and operating expenses.
The seven-member board, headed by chairman Uday Kotak, also appointed nominee directors for eight of IL&FS’ subsidiaries, and had detailed deliberations in relation to the road map ahead, according to a statement.
“The board initiated several austerity measures related to personnel and operating expenses,” the company said in a statement after the meeting.
The firm and its subsidiaries recently defaulted on several debt repayments due to liquidity crisis. 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On October 1, the government superseded the board of IL&FS and appointed a new board, with Kotak as its executive chairman. 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 director general of shipping Malini Shankar and Vineet Nayyar, veteran auditor Nand Kishore and former chief secretary of Rajasthan CS Rajan – based on the recommendations of the nominations and remuneration committee on eight subsidiaries of IL&FS.
It has appointed Nayyar, Kishore and Shankar as the nominees on the IL&FS Financial Services board. The new nominees for IL&FS Transportation Networks are Nayyar and Rajan, according to the statement. Kishore will be the nominee for IL&FS Environmental Infrastructure & Services and IL&FS Technologies.
The new nominees for IL&FS Energy Development are Chaturvedi and Nayyar.
The board appointed Shankar as the nominee for Tamil Nadu Water Investment Company.
Pursuant to the recommendations of the audit committee, which is headed by Kishore, the board said it would require 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.
The board, after its first meeting on October 4, had said it was required to give a road map for the company to the NCLT by October 31.