New Delhi: The Corporate Affairs Ministry has started an inspection of the books of accounts of realty firm HDIL, which has been unable to meet its debt obligations for an extended period, according to a senior official.
HDIL is embroiled in the crisis at Punjab and Maharashtra Cooperative (PMC) Bank, which has extended substantial amount of loans to the company.
Corporate Affairs Secretary Injeti Srinivas said an inspection of HDIL is being conducted by the ministry’s field office.
“At this juncture, it is very clear that there is a huge exposure and that they (HDIL) are not able to repay their debts for quite some time. There are serious issues on the face of it,” said Injeti Srinivas here Tuesday.
“They have not been able to generate revenues to meet their debt obligations. Those matters will have to be looked into. We have to see whether there is a business failure or some other issues,” added Srinivas.
The secretary said that preliminary examination would be done by the ministry’s field office and once they give their basic report then a view has to be taken whether there is need for a deeper probe or not.
“Inspection is quite deep. We go to the books of accounts also. We get a fair idea about how the financial management has been done. If you find some basic issues with internal financial controls or internal financial management… you will know whether there was anything malafide or not,” noted Srinivas.
An official had earlier said Monday that a look out circular has been issued against two directors of HDIL after preliminary findings allegedly revealed financial irregularities at the company. It has been issued against the company’s MD Sarang Wadhawan and whole time director Rakesh Kumar Wadhawan.
PTI