New Delhi, IL&FS Financial Services (IFIN), a group company of debt-ridden IL&FS Ltd, has incurred a cumulative loss of Rs 5,654 crore for the five-consecutive fiscals — from FY14 to FY18, according to the revised balance sheet of the firm undergoing resolution process. However, as per the original balance sheet, the company had earned a total profit of Rs 1,015 crore during the five-year period.
Following the recast, the company is exploring the option of seeking a refund of income tax paid from the Income Tax for these years.
In June this year, the National Company Law Tribunal (NCLT) asked the newly-appointed board of the IL&FS group to file a revised balance sheet, along with its two other subsidiaries.
Moreover, its total income also went down to Rs 7,777 crore on an aggregate basis during those five years against Rs 10,297 crore reported earlier, revealed the updated financial results.
The company’s new board has completed the reopening and recasting of financials and the revised accounts as per the direction of the NCLT.
In June this year, the Mumbai bench of NCLT gave a go-ahead to the newly-appointed board of the IL&FS group with the revised balance sheet, along with its two other subsidiaries — IL&FS Transportation and IL&FS Financial Services.
The restated account reflected that the company had actually reported a loss of Rs 3,322 crore in the financial year ended March 2018. However, the previous management had reported a profit of Rs 100 crore in the said financial year.
Similarly, it had booked a loss of Rs 1,315 crore during FY17 against a profit of Rs 209 crore recorded originally.
On January 1, 2019, the NCLT passed an order permitting reopening and recasting of the financial accounts of three IL&FS group companies — IL&FS Transportation, IL&FS Financial Services and IL&FS Engineering.
The order was passed over an application moved by the central government, which had suspended the board of debt-ridden Infrastructure Leasing and Financial Services (IL&FS) and appointed a six-member panel.
IL&FS is settling its over Rs 90,000-crore debt through asset resolution.
So far, IL&FS has discharged a total debt of Rs 35,650 crore as on September 30, 2023, and maintains an overall debt resolution target of Rs 61,000 crore.
It is resolving debts through monetisation and termination/settlement of payments by its group entities from concessioning authorities and counter-party to the relevant contract.
On October 1, 2018, NCLAT superseded the existing board of IL&FS on the recommendation of the Centre after the mega-crisis in IL&FS, which shook the finance industry.
A new board for IL&FS, which had a debt burden of Rs 94,000 crore, was appointed to take charge of the affairs and NCLAT conceived a framework for resolution of the crisis-hit group.
It had also granted protection to the IL&FS companies against recovery of any further dues and provided immunity to the newly-appointed directors of IL&FS against any proceedings for the past actions of suspended directors or any of the officers thereof.
At the same time, the Centre vide order dated September 30, 2018, directed that the affairs of the company to be investigated by the Serious Fraud Investigation Office (SFIO).
SFIO commenced an investigation of affairs of IL&FS and its subsidiaries under the Companies Act.
