Auditors flag IL&FS Engineering's loans to subsidiaries, customer dues

Says there is uncertainty over recovery of advances/dues from subsidiaries, customers

The auditor of IL&FS Engineering Services has raised the red flag over the company’s investments and advances to its subsidiaries, saying that there was an uncertainty on recovery of some of these investments.

In the annual report for the year ended March 2018, the company said it had an accumulated loss of Rs 4.61 billion on a consolidated basis and its net worth had been fully eroded. Besides, the company said its current liabilities exceeded its current assets by a Rs 13.48 billion as on the balance sheet date. It also said there were uncertainties on the recovery of its investments,