Kotak had earlier said that the board aims to address about 50% of the group's debt by March 2020.
The beleaguered IL&FS posted a net loss of Rs 22,527 crore in 2018-19 on a standalone basis, against a profit of Rs 333 crore in 2017-18. Total income from operations of the company, which was involved in core investment operations, fell 52.5% to Rs 823.67 crore. The company is no longer registered as a core investment company with the Reserve Bank of India.
Total assets of IL&FS stood at Rs 4,148 crore in FY19, down 84.8% year-on-year, while total liabilities grew 15.4% y-o-y to Rs 21,083 crore in FY19. Cash and cash equivalents of the company fell 90.6% to Rs 53.84 crore. The trade payable, or the outstanding dues of creditors, stood at Rs 26.27 crore. Claims against the company stood at Rs 2,137 crore, the management is in the process of reviewing them, IL&FS said. “No adjustments have been made in this regard to the statement, and all such claims received have been considered as contingent liabilities,” the company said.
The company has liabilities and provisions aggregating to Rs 21,083.06 crore in FY19. The company said it is in the process of reopening and recasting previous years’ accounts, pending which, it is not possible to determine its impact on the financial statements of FY19. IL&FS’ forensic audit is also currently underway. “The company is in the process of performing and completing the confirmation and reconciliation of inter-company balances with its various subsidiaries, associates and joint ventures. Further, audited financial statements of several subsidiaries, associates and joint ventures of the company for the year ended March 31, 2019, are not available,” the company said.
The net worth of IL&FS for FY19 turned negative. As at March 31, 2019, the company’s bank balances included Rs 241.28 crore, the company said. However, the bank confirmed an aggregate of Rs 59.13 crore to IL&FS. “Management believes that the differences have been incorrectly adjusted by the bank against their dues from other IL&FS group companies, without a right of set off, and hence has not accepted such adjustments, and is in the process of reconciling the same with the bank,” the company said.
The RBI has observed wide divergences in reported net-worth and the net-worth assessed by it. The management is in the process of evaluating the financial and other consequences arising from such observations, the company said.
The board had earlier said total debt obligations of IL&FS along with subsidiaries were close to Rs 1 lakh crore. Last year, the government had replaced the board of IL&FS with a government appointed one. The financial affairs of the company have since come under scrutiny by multiple government agencies for potential fraudulent transactions.
The new board, headed by Uday Kotak, has been in the process of monetising the assets of the group to address its debt. So far, the board has completed the sale of the group’s wind assets for Rs 4,800 crore, received bids worth Rs 13,000 crore for a group of its road assets, and is in the process of selling the group’s education arm, which is expected to fetch around Rs 650 crore.
The board also plans to create an infrastructure investment fund for its other road assets. Kotak had earlier said that the board aims to address about 50% of the group’s debt by March 2020.