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Grant Thornton India LLP (GT), which was appointed to conduct forensic audit of IL&FS Engineering and Construction Co Ltd (IECCL), a unit of Infrastructure Leasing & Financial Services (IL&FS), found potential anomalies about lapse in internal controls in the company.
The auditor had shared five instances it came across during the forensic audit, out of which four issues were raised by senior officials of IECCL, including Naresh Penumetcha, chief internal auditor of the company. The lapse of internal control ranges from bidding process, inventory, non-recording of bills of sub-contractors, dues of suppliers, unbilled revenue billing, receivable and payables as well as buying poor quality material for various projects undertaken by the IL&FS group company.
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Grant Thornton India LLP (GT), which was appointed to conduct a forensic audit of IL&FS Engineering and Construction Co Ltd (IECCL), a unit of Infrastructure Leasing & Financial Services (IL&FS), shows lack of system and record to handle complaints raised by whistle-blowers. The forensic auditor identified numerous email communications that highlighted whistleblower complaints with regards to the business operations of IECCL.
GT says, during its review, it had identified multiple whistleblower complaints, which highlighted anomalies in the projects executed by IECCL.
However, based on the clarification dated 22 November 2019, we were informed by the representatives of IECCL that there were no whistleblower complaints received by IECCL during the review period. Thus, it appears unusual that even after multiple whistleblower complaints highlighting various issues in the projects, no documentation such as actions taken or investigation reports are available with the
How GoI s gamechanging SWAMIH fund for stalled housing actually works on the ground
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Last Updated: May 17, 2021, 11:29 PM IST
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Synopsis
It is an innovative financing structure that must be replicated across several capital-intensive industries. Innovative financing is, indeed, the need of the hour. However, the biggest yardstick to measure success of the scheme will be in providing homes to middle-class families, which had their household wealth stuck over the last several years.
SWAMIH fund provides money to projects as a stand-alone entity, not to a builder.
Vivek Singh
Karan Bhasin
Karan Bhasin is an economist
Recently, Nirmala Sitharaman handed over the first set of homes that were completed using capital provided by GoI’s Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund, which is managed by SBICap Ventures.
Cross-border deals need broad skills in time of trade war and pandemic
For global commercial lawyers, advising on cross-border deals between local investors and foreign capital raisers is difficult at the best of times. But when the deal involves US and Chinese interests in the middle of a trade war, risk rises to a new level of complexity.
So, Ting Wang, of counsel at law firm Paul Hastings in Shanghai, had a challenge on his hands when his team tried to broker a strategic alliance between Chinese health group Fosun Pharma and Nasdaq-listed BioNTech to help develop and commercialise a Covid-19 vaccine.
Sebi Mandate On Key AMC Salary Not A Day Too Soon: Skin In The Game Necessary To Rein In Callousness
by S Murlidharan - May 3, 2021 12:30 AM
SEBI. (pic via Twitter)
Snapshot
A new Sebi rule makes it compulsory for top officials of asset management firms to invest 20 percent of their salaries in the schemes managed by themselves.
The Securities and Exchanges Board of Indiaâs (Sebi) mandate to Asset Management Companies (AMC) to start paying at least 20 per cent of the salary of their key personnel, including the fund manager actively managing a scheme, in the form of units of the schemes they are managing, hasnât come a day too soon.