IL&FS Investment Managers, part of the debt-laden IL&FS (Infrastructure Leasing and Financial Services) group, has approved the appointment of Nand Kishore and Kaushik Modak as additional directors in the company.
Nand Kishore and Kaushik Modak have been appointed to the board in the capacity of nominee directors of Infrastructure Leasing & Financial Service.
IL&FS Investment Managers said in a regulatory filing, “The board of directors of the company by resolutions passed by circulation on December 6, 2018, have approved the appointment of Nand Kishore and Kaushik Modak as additional directors, in the capacity of nominee directors of Infrastructure Leasing & Financial Service Ltd on the board of directors of the company.”
This week, debt-laden parent IL&FS, announced a plan to cut 65% jobs, in order to focus on cost reduction and “manpower optimization. This would eventually lead to the wage bill being halved and, the board hopes would help to pull the company out of its debt-ridden peril.
In a report to the National Company Law Tribunal (Mumbai) on the progress and way forward, the company board mentioned that in order to lead to savings across the entities within the group, the changes in manpower management would be carried out in two phases.
The government had formed a board of IL&FS after NCLT approved a resolution of the liquidity crisis at the company in wake of its bulky debt of Rs 91,000 Cr. The six-member IL&FS board is chaired by Uday Kotak, managing director and CEO of Kotak Mahindra Bank Ltd. The board includes ICICI Bank Ltd chairman G.C. Chaturvedi, former bureaucrats Malini Shankar, Vineet Nayyar, Nand Kishore, and C.S. Rajan.
The board itself has seen a churn in the recent weeks with G.N. Bajpai, one of the seven directors of the government-nominated board stepping down citing personal reasons. With manpower reduction plans, how successful will IL&FS be in setting its house in order remains to be seen.