IL&FS Debt Crisis: Recasting Financials and Debt Resolution
Debt-ridden IL&FS revealed a cumulative loss of Rs 9,414 crore from FY14 to FY18 after reopening its financials as per NCLT's direction. The company is resolving its Rs 90,000-crore debt through assets monetization, having discharged Rs 35,650 crore by September 2023, with an overall debt resolution target of Rs 61,000 crore.
![IL&FS Debt Crisis: Recasting Financials and Debt Resolution](https://devdiscourse.blob.core.windows.net/aiimagegallery/15_07_2024_15_30_39_486891.png)
- Country:
- India
Debt-ridden IL&FS disclosed a cumulative loss of Rs 9,414 crore over five consecutive financial years from FY14 to FY18, according to its revised balance sheet. The firm, under resolution by reducing its assets, saw its total income fall to Rs 5,786 crore in that period, down from the Rs 8,562 crore initially reported, as per the updated financial results.
The IL&FS board, appointed following the restructuring ordered by the National Company Law Tribunal (NCLT), completed reopening and revising the financial accounts. The Mumbai bench of the NCLT approved the revised balance sheet for IL&FS and its subsidiaries in June 2023.
Further, the revised accounts indicated a loss of Rs 7,530 crore for the financial year ending March 2018, overturning the previous management's reported profit of Rs 584 crore for the same period. This misreporting extended to other financial years, resulting in a significant overstatement of profits.
(With inputs from agencies.)
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