First Leasing Company of India Ltd (FLCI) has said that it is scouting for a suitable buyer to take over and revive the company even as it is awaiting forensic audit report to initiate actions against the persons who were alleged to have been involved in falsification of company’s accounts.
The company, on Tuesday, informed the stock exchanges that it had replied to Reserve Bank of India (RBI) stating that it was looking for a suitable entrepreneur, who would be willing to step in at this juncture and take over the management of FLCI for revival of the company.
``In view of the large gap in the assets and liabilities of the company and serious violations of statues committed by the erstwhile Managing Director, the company finds it extremely difficult to identify such entrepreneur. However, efforts are continuing,’’ it said.
It also said the forensic audit by R.K. Raghavan, former director of CBI, was in progress. Once the report was received, the company proposed to initiate both criminal and civil action against the persons identified by the audit, it added.
The reply to RBI comes after the regulator issued a show-cause notice dated February 18, 2014, for cancellation of registration after a RBI-appointed auditor found falsification of company accounts when Farouk Irani was the Managing Director.
The company’s board, which met on March 5, has decided to convene the 38th annual general meeting of the company on April 4.
I V Manivannan has been appointed as been appointed as additional director in the place of Justice S Mohan. V Selvaraj has been elected as the chairman of the company’s board.
