The IL&FS group is facing serious liquidity crisis and has defaulted on interest payments on various debt repayments since 27 August.Reuters

The newly inducted board of financially troubled Infrastructure Leasing & Financial Services (IL&FS) has decided to cut down its operating cost and non-essential expenses.

The Economic Times reported that the board has constituted a committee under the command of its vice chairman Vineet Nayyar to devise a plan to pull out the company.

In a statement, IL&FS said that the board is also of the opinion that the entire group should carry out a fresh audit of all its accounts. On Friday, the newly constituted board was holding its second meeting to discuss the way forward for the company.

The Kotak Mahindra-led board was constituted after the National Company Law Tribunal gave green signal to the government's recommendation to sack the entire board of the company. This is only the second time -- since the government took over fraud-hit Satyam Computer Services in 2009.

The company said, "Pursuant to the recommendations of the audit committee, the board required a full audit of the standalone and consolidated accounts as on September 30, 2018. The board also initiated several austerity measures related to personnel and operating expenses."

The company is going through a restructuring phase and has started replacing the nominee directors of its various subsidiaries. Based on the recommendations of its nominations and remuneration committee, the directors are being nominated from its current board only.

The directorship of the IL&FS Financial Services has gone to Nayyar, Nand Kishore, and Malini Shankar while Nayyar and CS Rajan will be on the board of IL&FS Transportation Networks. Nand Kishore will be on IL&FS Environmental Infrastructure & Services and GC Chaturvedi and Nayyar on IL&FS Energy Development.

Apart from the above nominations, Nayyar will also be on the board of IL&FS Education & Technology Services, Nand Kishore on IL&FS Technologies and Malini Shankar on the board of Tamil Nadu Water Investment Company.

The board was apprised about the 300 subsidiaries and associates of the group; the board comes to an agreement that it will meet frequently to solve the financial issue related to the company. The next hearing in the NCLT is scheduled for October 31.