The amortization of IL&FS leads to a loss of Rs 22.5k cr in the fiscal year

Mumbai: IL&fshasreportedastaggeringlossofrs22,527millionrupeesinitsindependentauditedresultsforfiscalyear19comparedtoanetgainofrs333rupeesreportedinthepreviousyear.


IL&FS recorded a total income of Rs 824 million rupees compared to Rs 1,734 million rupees last year. Total assets stood at Rs.4488 million versus Rs 23.868 million last year. However, the total liabilities had grown to Rs 21,083 million rupees compared to Rs 18,276 million rupees in the previous year.

The provisions follow the RBI Inspection of the company's books regarding its March 2018 results.

“The RBI has observed wide divergences in reported net worth and the net worth assessed by the RBI. The management is in the process of evaluating the financial and other consequences arising from such observations. However, the company has made provisions on loans and investments, ”IL&FS said“ The management has, in consultation with the new board, assessed and determined that the amounts of investments in loans to entities classified as “red” and “amber” are wholly not recoverable, ”the company said in the notes to accounts.

According to the balance certified by the authorized accounting firm SRBC&Co, the company's assets have been reduced to Rs 4,147 crore from Rs 23,868 crore. Its liabilities include debt securities of Rs 10,044 million and Rs 9,043 million of loans. In addition, it has Rs 1,622 million rupees of subordinated debt.

The NCLT has allowed the government's request to reopen account books and consolidate the accounts for the financial years 2013-14 to 2017-18, of IL&FS and its subsidiaries IL&FS Financial Services Limited (IFIN) and IL&FS Transportation Networks (ITNL). The reopening and recasting process is currently ongoing, pending which, it is not possible to determine the consequential effects that arise from that, the company said.