IL&FS Reports Cumulative Loss Of Rs 9,414 Crore Over Five Years
The revised financial statement showed that the company incurred a loss of Rs 7,530 crore for the fiscal year ended March 2018.
Debt-laden Infrastructure Leasing & Financial Services Ltd. reported a cumulative loss of Rs 9,414 crore over five consecutive financial years from fiscal 2014 to fiscal 2018, according to the firm's revised balance sheet. The company, which is in the process of asset resolution, also saw its total income decline to Rs 5,786 crore during this period, compared to the previously reported Rs 8,562 crore, according to the updated financial statements.
The company's new board has finalised the reopening and recasting of financials, and the revised accounts are in accordance with the directives of the NCLT. In June, the Mumbai bench of the National Company Law Tribunal authorised the newly appointed board of the IL&FS group to proceed with the revised balance sheet, including those of its subsidiaries IL&FS Transportation and IL&FS Financial Services.
The revised financial statement showed that the company incurred a loss of Rs 7,530 crore for the fiscal year ended March 2018. In contrast, the former management had declared a profit of Rs 584 crore for the same period. Consequently, IL&FS had also announced a dividend based on the reported profit of Rs 584 crore in fiscal 2018.
Similarly, it had booked a loss of Rs 713 crore during fiscal 2017 as against a profit of Rs 382 crore recorded originally. It had shown a profit of Rs 305 crore and Rs 274 crore in the financial years 2015 and 2016, respectively. However, the restated account showed a whopping loss of Rs 392 crore and Rs 789 crore for the two fiscals, respectively.
In fiscal 2014, the company had stated a net profit of around Rs 320 crore, but the restated account has shown a mere profit of Rs 9.7 crore.
As per the revised balance sheet, the total revenue of the company stood at Rs 1,226 crore in fiscal 2018, down from Rs 1,899 reported earlier.
Similarly, for fiscal 2017, revised total revenue came down to Rs 1,058 crore from Rs 1,782 crore.
On Jan. 1, 2019, the NCLT passed an order permitting reopening and recasting of the financial accounts of three IL&FS group companies — IL&FS Transportation, IL&FS Financial Services and IL&FS Engineering.
The order was passed over an application moved by the central government, which had suspended the board of debt-ridden Infrastructure Leasing and Financial Services and appointed a six-member panel.
IL&FS is settling its over Rs 90,000-crore debt through asset resolution.
So far IL&FS has discharged a total debt of Rs 35,650 crore as on Sept. 30, 2023, and maintains overall debt resolution target at Rs 61,000 crore.
It is resolving debts through monetisation and termination/settlement of payments by its group entities from concessioning authorities and counter-party to the relevant contract.
On Oct. 1, 2018, the NCLAT superseded the existing board of IL&FS on the recommendation of the Centre after the mega crisis in IL&FS, which shook the finance industry.
A new board for IL&FS, which had a debt burden of Rs 94,000 crore, was appointed to take charge of the affairs and NCLAT conceived a framework for resolution of the crisis-hit group.
The order also provided protection to IL&FS companies against the recovery of any additional dues and granted immunity to the newly appointed directors from proceedings related to the past actions of the suspended directors or any officers of the company.
Simultaneously, the Government of India, through an order dated Sept. 30, 2018, mandated an investigation into the company's affairs by the Serious Fraud Investigation Office.
(With PTI Inputs)
