IL''FS Reports Rs 9,414 Cr Loss Over 5 Years: Revised Balance Sheet

New Delhi, Aug 13 (PTI) Debt-ridden IL&FS had a cumulative loss of Rs 9,414 crore in five consecutive financial years from FY14 to FY18, according to the revised balance sheet of the firm, which has been under resolution by paring its assets.

Moreover, its total income also went down to Rs 5,786 crore on aggregate basis during those five years as against Rs 8,562 crore reported earlier, revealed the updated financial results.

The new board of the company has completed reopening and recasting of financials and the revised accounts as per the direction of the NCLT.

In June this year, the Mumbai bench of National Company Law Tribunal (NCLT) gave a go-ahead to the newly-appointed board of the IL&FS group with the revised balance sheet along with its two other subsidiaries -- IL&FS Transportation and IL&FS Financial Services.

The restated account reflected that the company had actually reported a loss of Rs 7,530 crore in the financial year ended March 2018. However, the previous management had reported a profit of Rs 584 crore in the said financial year.

Based on a profit of Rs 584 crore in FY18, IL&FS had declared a dividend also.

Similarly it had booked a loss of Rs 713 crore during FY17 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 year FY15 and FY16, respectively. However, the restated account showed a whopping loss of Rs 392 crore and Rs 789 crore for the two fiscals, respectively.

In FY14, 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 FY18, down from Rs 1,899 reported earlier.

Similarly for FY17, revised total revenue came down to Rs 1,058 crore from Rs 1,782 crore.

On January 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 (IL&FS) 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 September 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 October 1, 2018, 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.

It had also granted protection to the IL&FS companies against recovery of any further dues and provided immunity to the newly-appointed directors of IL&FS against any proceedings for the past actions of suspended directors or any of the officers thereof.

At the same time, the government of India vide order dated September 30, 2018, directed that the affairs of the company to be investigated by the Serious Fraud Investigation Office (SFIO).

SFIO commenced investigation of affairs of IL&FS and its subsidaries under the Companies Act.