Infrastructure Leasing & Financial Services (IL&FS), whose defaults on its payment obligations led to a liquidity crisis in the shadow banking sector, has posted a staggering net loss of Rs 22,527 crore in 2018-19 (FY19) on a standalone basis, as against a net profit of Rs 333 crore in the previous year, according to the company.
The company’s revenue declined 52.5 per cent to Rs 824 crore in FY19 from Rs 1,734 crore in FY18. Similarly, its assets declined 81.5 per cent to Rs 4,148 crore compared to Rs 23,868 crore in 2017-18. Liabilities of the company increased 15.3 per cent in FY19 to Rs 21,083 crore. In FY18, these stood at Rs 18,276 crore.
The company also reported a negative net worth of Rs 16,935 crore in FY19, compared to a net worth of Rs 5,592 crore in the previous year. The entity, on a consolidated level, has debt to the tune of over Rs 94,000 crore.
“The board adopted prudent provisioning on loans/impairment of investments and took a conservative view on fair market value and recovery estimates," the company said in a statement on Wednesday.
These are standalone numbers of the holding company, IL&FS, which has more than 300 subsidiaries in both India and abroad.
The company has also made provisions to the tune of Rs 19,430 crore in FY19 for loans, impairment of investments in its subsidiaries, associates, and joint ventures, resulting in a net loss of Rs 2,669.2 crore on financial assets at fair value. The company has not accounted for contractual interest income from its subsidiaries, associates, and joint ventures, of Rs 737.9 crore, on a gross basis and contractually payable finance costs on borrowings, of Rs 692.5 crore, excluding penal/other interest and charges, for the period from October 16, 2018 to March 31, 2019.
Auditors said that because of the losses incurred and the downgrades it had suffered, the company's ability to raise funds had been impaired, with normal business operations being substantially curtailed. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern. Further, the company has, as of March 31, 2019, breached its conditions for holding a certificate of registration as a core investment company, issued by the Reserve Bank of India.