This document provides information on Infrastructure Leasing and Financial Services (IL&FS) including its subsidiaries, debt levels, defaults, impact, and restructuring process. It summarizes that IL&FS is an infrastructure financing company formed in 1987 that has over 250 subsidiaries, but began defaulting on debt payments in 2018 totaling over Rs. 94,000 crore. This caused a liquidity crisis, impacted markets, and led to investigations into its governance and operations. A new board is undertaking measures like asset sales to restructure and resolve the situation.

2. Infrastructure Leasing and
Financial Services
Date of Incorporation :
03/09/1987
250+ Subsidiaries

3. Formed in 1987 as “RBI Registered
Company”

4. 25%
25%
13%
9%,
6.50%
7%
14%,

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

14. Sucheta Dalal
Business journalist

15. Early
September
August 28,
2018
July 21,
2018

16. September,
13
September,
12
August end

17. September,
21
September,
18
September,
15

18. October,
01
September,
29
September,
24

19. July 15,
2019
May 08,
2019
April
24,
2019

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

23. Uday Kotak
(Chairman)
Vineet
Nayyar
Malini
Vijay
Shankar
Girish
Chandra

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