IL AND FS PRESENTATION

2.  Over 30 years IL and FS has
helped to develop and
finance projects worth
about 1.8lakh crore and its
transport subsidaries
building about 14000 lane-
km in over 30 project .

3.  Transportation
 Energy
 Water and wastewater
 Urban asset management
 Environment
 Education and technology
 Skill development

4.  Type:-Public
 Industry:-Infrastructure Development
and Finance
 Headquarter:- Mumbai,Maharastra,India

5.  It operates through more than 250
subsidiaries including IL & FS Investment
managers, IL & FS financial services .
 Its projects include some of the
largest infrastructure projects such as
1.Longest tunnel
2.Chennai Nashri tunnel.

6.  It was founded by three financial
institution such as:-
 Central Bank of India
 Housing Development Financial
Corporation.
 Unit Trust of India
 Its shareholders are LIC,ORIX,ADAI

7.  As of March 2018, the largest shareholders
of IL & FS Investment services were as
follows_
 LIC : 25%
 ORIX Corporation, Japan (a part
of Mitsubishi Keiritsu): 23%
 IL & FS Employees welfare trust : 12
 Abu Dhabi investment authority : 12%
 HDFC Ltd : 9
 Central bank of India : 7%
 State Bank of India : 6%

8.  Life Insurance Corporation of India with
a 25.34% stake which is largest
shareholder in the company.
 Orix Corporate ,Japan with 23.54% stake
and is the second largest shareholder.
 State Bank of India holds 6.42% stake.

9.  From July to September 2018, two out of
IL & FS's 256 subsidiaries reported
having trouble paying back loans and
inter corporate deposits to other banks
and lenders.
 Back then in early September
2018, Moneylife India reported that one
of IL & FS's subsidiaries had been unable
to repay a Rs. 1000 crore short term
loan taken from SIDBI.

10.  On 1st october 2018, the Government of
India took steps to take control of the
company and arrest spread of the
contagion to the financial markets.
 Newspapers reported the lavish salaries
management gave itself at the expense of
the public money.
 In the absence of adequate supervision by
RBI or shareholders or any provisions on
remuneration, the management treated the
company as its fiefdom.

11.  (June)IL & FS group’s transport
subsidiary IL&FS transportation networks
delayed repayment of Rs450 crore of
inter-corporate deposits from Small
Industries Development Bank of
India(SIDBI).
 (July) Group’s founder and chairman Ravi
Parthasarathy steps down ,citing health
reasons.

12.  (August) Group’s financial arm IL&FS
financial services defaults on repaying a
few hundred crores of rupees to its
commercial-paper investors but pays
the same two days later.
 (September) ICRA CARE and brickwork
ratings downgrades the conglomerate’s
various long and short term borrowing
programmes worth over Rs 12,000
crores to “default” or “junk” grades.

13.  Meanwhile ,the RBI initiates a special audit.
 After that former LIC chairman SB Mathur
takes over as IL7FS group chairman.
 IL&FS says it is planning to monetise assets
to pare its debt by upto Rs 30,000 crores
over the next 18 months.
 RBI meets top shareholders and raises
concern on the crisis.
 NCLT judgement allows govt. to assume
control and institute a new board under
chairmanship of Uday Kotak and other 5
members.