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Similar to Infrastructure giant IL&FS collapses under debt of Rs 94,000 Cr
Similar to Infrastructure giant IL&FS collapses under debt of Rs 94,000 Cr (20)
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Infrastructure giant IL&FS collapses under debt of Rs 94,000 Cr
- 2. Infrastructure Leasing and Financial Services Date of Incorporation : 03/09/1987 250+ Subsidiaries
- 3. Formed in 1987 as “RBI Registered Company”
- 5. 141 Indirect Subsidiaries 23 Direct Subsidiaries Paid up Share Capital Rs 983 Cr. Share Capital RS 1604 Cr.
- 6. Gujarat International Finance Tech city Ladakh To Kashmir tunnel Building Oil Terminal India’s Longest and safest road tunnel
- 8. Masala Loan IL&FS Transportation (ITNL) secured USD 50mn from Export Development Canada(EDC). Refining debt and general corporate purposes Rupee denominated loan First Indian company to raise this type of loan from overseas Currency fluctuations hedging costs are borne by the lender.
- 9. Government of India Reserve Bank of India Bank & Monitory Sector SEBI Capital Market IRDA Insurance Sector
- 10. 7 times defaulted in Payment of interest Today’s Debt Rs. 94,216 cr. Secured 73,359 Cr & Unsecured 20,857 Cr Defaulted short term loan of Rs 1,000 Cr Capital infusion of Rs 3000 Cr Proposed Rights Issued of Rs 4500 Cr.
- 11. Unable to repay CP obligations To fulfill long term debt company started taking short term debt. Debt- Equity Ratio 16 times 700 Cr recovery from National Highway Authority of India on the basis of executed projects. Tamil nadu Power company filed litigations of Rs. 382 Cr Auditors in default BSR Associates & Deloitte
- 20. Improper utilization of company’s resources by top management. • High paid top management. Shadow Bank so less regulatory compliances because company is not directly taking deposits from the public. • Risk management not done properly Cost escalation due to project delays. • Problems in land acquisition.
- 21. Started finding lapses in the regulating the IL&FS. RBI conducted forensic audit into IL&FS financials. Serious Fraud Investigation Office filed charge sheet as per suggested by RBI Corporate governance lacked in the IL&FS. RBI reported improper calculation of Net owned funds for year 2015 onwards.
- 22. Asked other commercial banks to disclose the outstanding's and Non-Performing Assets of the IL&FS on 24th April, 2019 The central bank could invoke Section 45 of the RBI Act, 1934, against the wholly-owned subsidiary of infrastructure lender IL&FS. RBI issues a show-cause notice to IL&FS. •Fraudulent transactions were taken up to bypass the RBI directions on group lending. Auditors have resigned on 15th July, 2019
- 24. Fall of NIFTY, SENSEX indices Fear of liquidity. 60% fall of share price of DHFL. Credit rating agency’s CEO sent on leaves L&T and Bajaj Finance share price fall 14% to 16% . Trust on Credit rating agency are under scanner.
- 25. •Mutual fund invested in debt instrument will get affected. • Mutual funds units started selling out. •Financial market gets destabilize • Down in credit rating of other invested companies. National Pension Scheme gets affected.
- 26. Self Governance should be removed Restructuring Strategy Liquidate the non performing subsidies Resolve land acquisition issues with the help of Govt Similar type of company should monitor by RBI
- 27. Risk Assessment at regular Interval Corporate Governance Whistle Blowing strategy should adopt RBI must have right to appoint Auditors Concurrent Audit’s must be done effectively & efficiently
- 28. Aniket M, Vishal, Vikas , Tejas & Mayank Designed and created by Aniket M