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Journal of Emerging Technologies and Business Management

Abstract

In india, IL&FS was considered on of the major NBFCs which was financial and executing the infrastructure projects through its 169 subsidiaries. The IL&FS portfolio included different sectors such as education, power generation, e-governance, etc. LIC, ORIX corporation and IL&FS EWT are the largest shareholders of the company IL&FS defaulted on September 4th, 2018 on the repayment of the loan owned to the SIDBI. Further , more defaults took place by the holding and its subsidiaries companies On the account of such defaults, credit rating agencies downgraded the rating of the debt instruments of the company. some of the debt schemes of the mutual funds having exposure to the IL&FS fell by 1-3% of their NAV. The central government appointed a new board of the company. The new board initiated several cost-cutting measures. The companies who audited the financial statements of the group companies were investigated by the regulatory bodies. The grant thornton report exposed that several loans were given by the companies without creating sufficient charges against such loans. The SFIO reported indicated that the EWT was utilized for the enrichment of the few select employees only. The land acquisition, Rehabilitation and Resettlement bill passed by the government caused delays in the project implementation and financial loss to the company

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