Revised financial statements of two IL&FS group firms submitted before NCLT

Revised financial statements of two IL&FS group firms, IL&FS Transportation and IL&FS Financial Services, for the financial years 2013 to 2018 have been submitted before the National Company Law Tribunal (NCLT).

A two-member bench of NCLT Mumbai comprising Prabhat Kumar and Justice Virendra Singh Bisht has taken the submissions of revised financial statements on record.

Earlier 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 the debt-ridden Infrastructure Leasing and Financial Services (IL&FS) and appointed six-member panel.

Following the order, a revised account was submitted to NCLT on June 26 and an order was uploaded for the same on Monday.

"In terms of the order dated 01.01.2019 in the matter of IL&FS, the revised financial statements of IL&FS Financial Services Ltd and IL&FS Transportation Network Ltd for the Financial Year ending 31.03.2013 to FY 31.03.2018.are sought to be placed on record. The same is taken on record," said NCLT.

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 the concessioning authorities and counterparty 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On October 1, 2018, NCLAT superseded the existing board of IL&FS on the recommendation of the Centre after the mega-crisis in IL&FS, which shook the finance industry.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 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.

As per the roadmap for IL&FS, its group companies have been categorised into three categories -- green, amber and red -- based on their respective financial positions.

Companies under the green category are those that continue to meet their payment obligations.

At that time IL&FS had a total of 302 entities of which 169 are domestic and the rest 133 are offshore.