Highlights
- The Insolvency and Bankruptcy Board of India has mandated that the Information Memorandum must disclose the carry forward of losses as per the Income Tax Act, 1961, enhancing the transparency and comprehensiveness of the insolvency process.
- Insolvency Professionals are now required to conduct thorough financial and tax analyses to accurately capture the details of carry forward losses, which may increase their compliance burden during the time-sensitive Corporate Insolvency Resolution Process.
- The amended disclosure framework aims to improve the valuation of distressed companies by providing potential resolution applicants with a clearer understanding of the corporate debtor’s…
