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Global banking giant HSBC has filed a winding up petition in a Singapore court against an overseas subsidiary of IL&amp;FS Transport Services Ltd (ITNL) for recovery of dues totalling more than Rs 1,000 crore. In the first such case against a group entity of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&amp;FS) Group, the Hongkong and <keyword id="848515" type="COMPANY" weightage="20" keywordseo="Shanghai-Banking-Corporation">Shanghai Banking Corporation</keyword> (HSBC) is seeking to recover its funds parked in bonds worth RMB 1,000 million (over Rs 1,050 crore) maturing in 2021, which were issued by <keyword id="8871445" type="COMPANY" weightage="20" keywordseo="itnl-offshore">ITNL Offshore</keyword> Pte Ltd. As per a notice published in Singapore's government gazette on March 3, HSBC filed its <keyword id="6355821" type="UNKNOWN" weightage="20" keywordseo="application">application</keyword> for winding up of ITNL Offshore Pte Ltd in Singapore High Court on February 27. The application has been listed for hearing on March 20 and "any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose", the notice said. When contacted, an IL&amp;FS spokesperson told , "The company is engaging with bondholders and aims to arrive at an amicable solution to resolve their debt." After a huge crisis came to light due to outstanding debt of over Rs 90,000 crore at IL&amp;FS, the government in October 2018 seized control of the debt-trapped company and superseded its board by appointing a new one, led by eminent banker <keyword id="45051" type="PERSON" weightage="20" keywordseo="Uday-Kotak">Uday Kotak</keyword> as its chairman. ITNL alone is said to account for outstanding debt totalling nearly Rs 40,000 crore, while the company and many other subsidiaries of IL&amp;FS have defaulted on several debt instruments due to insufficient funds. The new board, as part of the overall resolution process for the IL&amp;FS Group, has sold a number of assets to clear dues and debt. ITNL and several other IL&amp;FS entities are also facing multiple probes for alleged wrongdoings by the erstwhile management, while role of auditors and credit rating agencies have also come under the scanner. On Wednesday, the National Company Law Appellate Tribunal dismissed pleas of auditors of debt-ridden IL&amp;FS -- Deloitte Haskins &amp; Sells and <keyword id="50041" type="COMPANY" weightage="20" keywordseo="KPMG">KPMG</keyword> arm BSR &amp; Associates -- along with independent directors challenging their impleadment in the case of alleged fraud at group firm IFIN. The central government had submitted that the act of fraud perpetuated is on account of "mis-representation and falsehoods about the financial state of affairs" of IFIN, which jeopardised its financial health and also caused serious damage and financial loss to various stakeholders. BJ MKJ

HSBC moves to liquidate IL&FS company in Singapore court

IL&amp;FS Transportation Networks, India's largest owner of road assets, jumped on news that the company would consider floating a Rights Issue to raise funds for newer projects at a time when the government has raised its focus on the roads sector.
 <keyword id="66922" type="ORGANIZATION" weightage="100" keywordseo="ITNL">ITNL</keyword> has grown into the largest build, operate and transfer (BOT) road asset owner in India with approximately 13,100 lane kilometer (km) in its portfolio. ITNL said its board would meet on August 26 to finalise the details of the proposed rights issue. As a consequence, ITNL rose 2.30 rupees, or 2 percent, to 119.50 rupees on the <keyword id="53581" type="CITY" weightage="100" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword> where 3.73 lakh shares were traded compared with a 5-day average of 7 lakh shares. 

	Recently, ITNL said its first quarter profit crashed 97 percent to 2.9 crore rupees compared with 137.7 crore rupees in the same quarter a year ago. Sales rose 5 percent to 1,644.4 crore rupees during April-June compared with 1,564.2 crore rupees in the year ago period.
 

	ITNL's market capitalisation has slumped 45 percent in the past one year to 2,967 crore rupees.

	 
	 
	(Image credits: Indiatimes)

India's largest owner of road assets' shares jumped on news of company's prospective fund raising plans

Shares of <keyword id="124900" type="COMPANY" weightage="100" keywordseo="ILFS-Transportation-Networks">IL&amp;FS Transportation Networks</keyword>, a mid-sized construction firm, rose more than 2 percent after the company said it won a contract from the government for expanding a highway in Maharashtra. <keyword id="66922" type="ORGANIZATION" weightage="100" keywordseo="ITNL">ITNL</keyword> said it won a bid worth `2,288 crore rupees from the state of Maharashtra for 4-laning a 194 kilometer stretch on National Highway 6. The contract has a concessional period of 19 years and will work on Build-Operate-Transfer basis, ITNL said in a note to exchanges. ITNL rose 2.2 percent, or 1.5 rupees, to 150 rupees on the <keyword id="53581" type="CITY" weightage="100" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword>, where 1.56 lakh shares were traded in the first 2 hours of trade compared with the 5-day average of 3.03 lakhs. 

	ITNL's market capitalisation has fallen 36 percent in the past one year to 3,600 crore rupees as investors mostly shied away from companies that get a majority of their business from the government.

	 
	 
	(Image credits: Indiatimes)

Rs. 2,288 crore contract working in favour of IL&FS in the markets

New Delhi, The <keyword id="19916403" type="General" weightage="20" keywordseo="national-company-law-appellate-tribunal" source="keywords">National Company Law Appellate Tribunal</keyword> has directed the <keyword id="19905189" type="General" weightage="20" keywordseo="national-highways-authority-of-india" source="keywords">National Highways Authority of India</keyword> (<keyword id="20198815" type="General" weightage="20" keywordseo="nhai" source="keywords">NHAI</keyword>) not to terminate the concession agreement of an IL&amp;FS group entity -- <keyword id="21195547" type="General" weightage="20" keywordseo="baleshwar-kharagpur-expressway-ltd" source="keywords">Baleshwar Kharagpur Expressway Ltd</keyword>, and take appropriate measures for its insolvency resolution. The appellate tribunal said the resolution of Baleshwar Kharagpur Expressway Ltd (BKEL), a SPV set up by <keyword id="21195548" type="General" weightage="20" keywordseo="ilfs-transportation-networks-limited" source="keywords">IL&amp;FS Transportation Networks Limited</keyword> (ITNL), "is in final stages" and any termination at this stage would "further complicate" the process. "It is also relevant to notice that when Resolution of Respondent No 2 (BKEL) is at the final stages, there is no occasion for Respondent No 1 (NHAI) to proceed to terminate the concession agreement to further complicate the resolution of an entity," said <keyword id="19916400" type="General" weightage="20" keywordseo="nclat" source="keywords">NCLAT</keyword>. NCLAT observed that the insolvency resolution of BKEL, which is for the development of a road project in Baleshwar-Kharagpur Section of NH-60, is as per the framework approved by appellate tribunal for recovery of debts of crisis-hit IL&amp;FS group and its entities. It further said when an entity is to be resolved as per the resolution framework, payments to all creditors/ claimants including the lenders have to be as per the resolution process. "We further direct that the applicant as well as respondents to take appropriate measures for final resolution of the entity, i.e. respondent No.2," said NCLAT while disposing of the interim application moved by <keyword id="19934368" type="General" weightage="20" keywordseo="state-bank-of-india" source="keywords">State Bank of India</keyword> (SBI). A concession agreement was signed on April 24, 2012 between NHAI and BKEL, in which it had availed financial facilities from the SBI. As per the concession agreement, BKEL was obliged to pay concession fees and premium to the NHAI. However, a deferment in payment of premium was granted by NHAI by entering into a supplementary agreement in 2016. However, in 2018, IL&amp;FS crisis happened and in 2019, BKEL was categorised as 'Red Entity' of the IL&amp;FS Group as per the roadmap approved by NCLAT. In the red list, those IL&amp;FS group companies were listed which were not able to meet financial and operational obligations, including payment obligations to their creditors. Meanwhile, NHAI wrote several letters demanding repayment of premium dues, interest, default interest, penal interest, interest overdue etc, which was objected by SBI as it may derail the resolution process. Later, NHAI issued notice for initiating a proposal for procurement of a third-party agency for user fee collection in two toll plazas on NH-60, which were held by BKEL. On this, SBI approached NCLAT and submitted that NHAI had demanded for payment of a premium over Rs 400 crore, whereas in escrow account at present the balance is only Rs 291.41 crore. As per the concession agreement, payment has to be made to NHAI within 30 days of receiving a demand along with necessary particulars, failing to which it will terminate the agreement.

NCLAT directs NHAI not to terminate concession agreement of IL&FS group entity

The Enforcement Directorate (ED) has summoned Maharashtra <keyword id="42402" type="General" weightage="80" keywordseo="ncp" source="Orion">NCP</keyword> president and MLA <keyword id="57456" type="General" weightage="20" keywordseo="Jayant-Patil" source="Orion">Jayant Patil</keyword> for questioning in a money laundering case linked to alleged financial irregularities in the now bankrupt IL&amp;FS, official sources said Friday. The 61-year-old MLA from Islampur seat of Maharashtra has been asked to depose before the federal agency here on Friday, they said. Patil, a former minister of home and finance, is also the state president <keyword id="54794" type="General" weightage="50" keywordseo="nationalist-congress-party" source="Orion">Nationalist Congress Party</keyword> (NCP) and is a seven-term legislator. The agency has recently initiated fresh action in this 2019 case after it searched the Mumbai offices of Deloitte Haskins and Sells and BSR and Associates, an Indian affiliate of global accounting firm KPMG, the two former auditors of IL&amp;FS. The Infrastructure Leasing and Financial Services Limited (IL&amp;FS) filed for bankruptcy in 2018. The premises linked to the two auditors in Mumbai were searched under the provisions of the Prevention of Money Laundering Act (PMLA), they added. Some employees of the two companies -- Deloitte Haskins and Sells and BSR and Associates,-- were also questioned by the officials during the searches even as documents were seized. "This routine inquiry is in respect to an ongoing matter regarding a former client and we continue to extend our full cooperation to the authorities," a spokesperson for Deloitte said. The action came a week after the <keyword id="6354977" type="General" weightage="50" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> set aside a Bombay High Court verdict that quashed an SFIO probe against the two companies, both former auditors of IL&amp;FS Financial Services, paving the way for action against them under the Companies Act and allowing the National Company Law Tribunal (NCLT) to take forward its enquiry against them. The Serious Fraud Investigation Office (SFIO) is an agency under the Ministry of Corporate Affairs that investigates and prosecutes white collar crimes and frauds. The money laundering probe into the alleged financial irregularities at IL&amp;FS was launched by the ED in 2019 after the federal agency took cognisance of a Delhi Police Economic Offences Wing (EOW) FIR filed against IRL, ITNL (group companies of IL&amp;FS), its officials and others. The ED also took cognisance of a complaint filed by the SFIO against IL&amp;FS Financial Services (IFIN) and its officials. The agency had also attached assets of various entities in this case in the past. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/pixel-fold-pixel-7a-pixel-tablet-and-everything-announced-at-google-i/o-2023/articleshow/100143082.cms">Pixel Fold, Pixel 7a, Pixel Tablet and everything announced at Google I/O 2023</a> <a href="https://www.businessinsider.in/tech/mobile/news/survey-reveals-three-out-of-four-indians-suffer-from-nomophobia-heres-what-it-means/articleshow/100073985.cms">Survey reveals three out of four Indians suffer from NoMoPhobia: Here’s what it means</a> <a href="https://www.businessinsider.in/tech/mobile/news/nothing-phone-2-confirmed-to-launch-soon-with-snapdragon-8-gen-1-may-come-with-an-alert-slider/articleshow/99978052.cms">Nothing phone (2) confirmed to launch soon with Snapdragon 8+ Gen 1, may come with an alert slider</a>

IL&FS money laundering case: ED summons Maha NCP president & MLA Jayant Patil

<ul><li><keyword id="9637999" type="General" weightage="20" keywordseo="ILFS-AUDITOR" source="Orion">IL&amp;FS auditor</keyword> <keyword id="7600207" type="General" weightage="20" keywordseo="SRBC" source="Orion">SRBC</keyword> &amp; Co has resigned with effect from September 28.</li><li>The group’s board has appointed CNK Associates as the new <keyword id="6437332" type="General" weightage="20" keywordseo="AUDITOR" source="Orion">auditor</keyword> to the firm for fiscal 2022.</li><li>The development comes amid recent allegations of ‘<keyword id="75331" type="General" weightage="20" keywordseo="professional-misconduct" source="Orion">professional misconduct</keyword>’ against SRBC.</li></ul>Bankrupt infrastructure financier, Infrastructure Leasing &amp; Financial Services (<keyword id="6357293" type="General" weightage="20" keywordseo="ILFS" source="Orion">IL&amp;FS</keyword>), on Friday, said its statutory auditor SRBC &amp; Co has resigned with effect from September 28, 2021. “M/s SRBC and Co. LLP will be ineligible to continue as auditors of the Company for the financial year 2021-22 beyond September 30, 2021 having completed audits for three years,” it said in a stock exchange filing. The IL&amp;FS board has appointed CNK Associates as the new auditor to the firm for fiscal 2022. The development comes amid allegations of ‘professional misconduct’ against SRBC, as per an assessment by the National Financial Reporting Authority (<keyword id="1500518" type="General" weightage="20" keywordseo="NFRA" source="Orion">NFRA</keyword>), part of the Ministry of Corporate Affairs. The NFRA reviewed the fiscal 2018 audit of IL&amp;FS Transportation Networks Ltd. (ITNL). In its September 23 <keyword id="12220678" type="General" weightage="20" keywordseo="audit-quality-review" source="Orion">audit quality review</keyword> <a href="https://nfra.gov.in/sites/default/files/AQRR%20ITNL.pdf">report</a>, the government body alleged that SRBC, which used the EY logo and brand name in a misleading manner, and failed to provide adequate evidence supporting their assessment of the going concern status of ITNL. The 343-page NFRA report, in its assessment, further alleged that SRBC, <ul><li>Failed to disclose material facts known to them which are not disclosed in financial statements.</li><li>Failed to report a material misstatement known to them to appear in a financial statement.</li><li>Not exercised due diligence, or have been grossly negligent in the conduct of their professional duties</li></ul>Among other such allegations, NFRA concluded that SRBC did not perform the audit procedures in a consistent manner. “This renders the audit documentation completely unfit for the intended purpose. In not rectifying these deficiencies, the audit firm is guilty of serious professional misconduct,” it said. In 2018, debt-ridden IL&amp;FS group had gone bust creating a ripple effect in India’s shadow banking sector. Recently the IL&amp;FS board, led by billionaire banker Uday Kotak, said that it would resolve about 62% of the group's debt of nearly ₹99,000 crore, by the end of ongoing fiscal. As of April, the group has addressed debt worth ₹43,100 crore, short of its initial target to resolve about ₹50,000 crore by end of March. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/ritesh-agarwal-led-oyo-files-preliminary-papers-for-its-1-2-billion-ipo/articleshow/86674003.cms">Ritesh Agarwal-led OYO files preliminary papers for its $1.2 billion IPO</a> <a href="https://www.businessinsider.in/business/corporates/news/heres-why-paras-defence-and-space-tech-got-the-best-listing-post-ipo-this-year/articleshow/86674479.cms">Paras Defence &amp; Space Technologies makes space cameras and it just made the best listing post-IPO this year</a> <a href="https://www.businessinsider.in/india/news/from-increased-premium-payments-to-getting-seven-midnight-calls-users-vent-on-social-media-against-rbis-new-auto-debit-rules/articleshow/86673532.cms">From increased premium payments to getting seven midnight calls, users vent on social media against RBI’s new auto-debit rules</a>

IL&FS replaces auditor SRBC & Co amid allegations of professional misconduct by NFRA

New Delhi, Feb 11 () The government has approached the National Company Law Appellate Tribunal seeking additional 270 days to complete resolution process of 105 IL&amp;FS group companies.The Ministry of Corporate Affairs (MCA) has also requested the appellate tribunal to release 55 other entities from moratorium, so that they can discharge their debt obligations.Certain protection and reliefs were granted to the 55 entities through an order passed by the National Company Law Appellate Tribunal (NCLAT) on October 15, 2018.In addition to the 55 entities, the ministry has also asked the NCLAT to release nine companies from the scope and operation of the October 2018 order, according to an affidavit filed by the ministry with the appellate tribunal.Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Ratedi Wind Power, Wind Urja India, Tadas Wind Energy, Kaze Energy, Jharkhand e-Governance solutions Services and Infrastructure Development Corporation of Assam are the nine companies."For the remaining 105 domestic group entities, extend the scope and operation of the order passed by this tribunal on October 15, 2018 for an additional period of 270 days from the date on which the resolution framework is approved by this tribunal, to enable the new board to successfully complete the resolution of IL&amp;FS Group," as per the affidavit.Passing an interim order on October 15, 2018, the NCLAT had stayed all proceedings against IL&amp;FS group companies, whose total debt is Rs 94,215 crore.Besides, the MCA has asked to approve the composition of the Creditors' Committee of five SPVs of IL&amp;FS Transportation Networks (ITNL) constituted in accordance with the resolution framework, which includes all financial creditors, including IL&amp;FS group companies that have provided financial debt.It has also asked NCLAT to "direct that voting by the Creditors' Committee of these 5 ITNL Sale SPVs be held expeditiously to consider and vote on the H1 bid value and that the New Board may be permitted to proceed with the resolution process of these 5 ITNL Sale SPVs under the supervision of Justice D K Jain and NCLT". According to the affidavit, IL&amp;FS has an aggregate debt of Rs 94,215 crore, in which Rs 10,173 crore (around 10.79 per cent) is collectively from public fund creditors as pension funds, provident funds, employee welfare funds, gratuity funds and army group insurance funds etc.Rs 44,075 crore debt, which is 47 per cent, is collectively from the commercial banks, the affidavit said.Moreover, the aggregate debt of its four key holding companies -- Infrastructure Leasing &amp; Financial Services (IL&amp;FS), IL&amp;FS Financial Services, IL&amp;FS Transportation Networks Ltd (ITNL) and IL&amp;FS Energy Development Company Ltd (IEDCL) - is almost 51 per cent, which is Rs 48,000 crore.Besides, these four companies also provided loans to other IL&amp;FS group entities accounts to Rs 26,154 crore, which is around 80 per cent of the total loan provided by the group.According to the government, in the absence of any group insolvency framework currently exisiting under Indian law, the resolution of the IL&amp;FS group, which is spread across multiple jurisdictions and business verticals, is a taste case for "Group Insolvency" in India and represents a "watershed moment" in the relatively recent and evolving IBC laws.IL&amp;FS group comprised of 302 entities, of which 169 entities are incorporated in India and 133 entities outside. KRH MKJ

Govt seeks additional 270 days to complete resolution for 105 IL&FS group companies

New Delhi, Mar 8 () Being steered by a government-appointed and eminent banker Uday Kotak-led board on its path to recovery, crisis-hit IL&amp;FS has sought extension of bid validity for five road projects that are faced with debts totalling over Rs 10,000 crore. Infrastructure Leasing and Financial Services (IL&amp;FS) had received time-bound binding bids for these five road projects, but the validity of those bids expired on February 29. These five projects are Chenani Nashri Tunnel project (CNTL), Pune Sholapur Road Development (PSRDCL), Jorbat Shillong Expressway Limited (JSEL), Hazaribagh Ranchi Expressway (HREL) and Jharkhand Infrastructure Implementation Company (JIICL). The five projects have received bids totalling Rs 7,489 crore, as against an aggregate debt of Rs 10,500 crore, as per an affidavit filed by the company before the National Company Law Appellate Tribunal (NCLAT). When contacted, an IL&amp;FS spokesperson told , "We are working with the bidders to get an extension of the bids and will follow the laid-out process for concluding the transaction on receipt of the extension." Out of the five projects, the company recently got approval from lenders for three projects -- PSRDCL, JSEL and CNTL -- for bids totalling approximately Rs 6,250 crore. However, an expired validity may pose challenges in sale of these assets in the absence of an extension, even if lenders have approved the bids. After a huge crisis came to light due to outstanding debt of over Rs 90,000 crore at IL&amp;FS, the government in October 2018 had seized control of the debt-trapped company and superseded its board by appointing a new one, led by Kotak as its chairman. The new board, as part of the overall resolution process for the IL&amp;FS Group, has sold a number of assets to clear dues and debt, while the process is underway for resolution of several other debt-laden projects. Out of the five road projects, Cube Highways has emerged as the highest bidder with Rs 3,900 crore bid for CNTL having debt of approximately Rs 5,454 crore, while Autostade of Italy is the top bidder for PSRDCL project with bid of Rs 1,404 crore as against total debt of Rs 1,925 crore. Sekura Roads has made the highest bid for JSEL project at Rs 916 crore, as against total debt of Rs 1,406 crore. According to the company's NCLAT affidavit, the binding bids received for these five road special purpose vehicles of IL&amp;FS Transport Services Ltd (ITNL), an IL&amp;FS subsidiary. have already been extended once. Post the earlier extension, the binding bids received for each of the ITNL SPVs were valid till February 29, 2020 and letters of intent were required to be issued to the respective highest bidders on or before that date. However, the company was unable to complete its process of seeking lenders' approval in time which has resulted in the bid validity expiring. While three projects now have lenders' approvals but lapsed bids, two projects --HREL and JIICL -- are also yet to get lenders' approval, which will be followed by approval from Justice D K Jain and the National Company Law Tribunal (NCLT) before letters of intent can be issued. Sekura Roads is the highest bidder for both these projects with bids valued at Rs 727 crore and Rs 512 crore for JIICL and HREL, respectively. In the meantime, global banking giant HSBC has filed a winding up petition in a Singapore court against an overseas subsidiary of ITNL for recovery of dues totalling more than Rs 1,000 crore. In the first such case against a group entity of IL&amp;FS, the Hongkong and Shanghai Banking Corporation (HSBC) is seeking to recover its funds parked in bonds worth RMB 1,000 million (over Rs 1,050 crore) maturing in 2021, which were issued by ITNL Offshore Pte Ltd. The plea, filed on February 27, has been listed for hearing on March 20 and "any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose", as per a notice published in Singapore's government gazette on March 3. BJ MKJ

IL&FS seeks extension of bid validity for 5 road projects facing Rs 10,500-cr debt

<ul><li>Former IL&amp;FS directors, Arun Shah and K Ramchandra were arrested by the Enforcement Directorate (ED).</li></ul><ul><li>The arrest comes after the Serious Fraud Investigations Office (SFIO) filed first chargesheet in May.</li></ul><ul><li>The arrests were made under the prevention of money laundering act (PLMA). R C Bawa and Hari Sankaran were also arrested under the same act.</li></ul>The government has been moving fast to arrest financial criminals in India. As proof, the Enforcement Directorate (ED) arrested two former directors of scam-ridden Infrastructure Leasing &amp; Financial Services (IL&amp;FS). The ED arrested Arun Shah and K Ramchandra on June 19, under the Prevention of Money Laundering Act (PMLA), <a href="https://economictimes.indiatimes.com/news/politics-and-nation/two-directors-of-ilfs-arrested-by-mumbai-ed-reports/articleshow/69863036.cms">according to reports</a>. Arun Shah was the Joint Managing Director of IL&amp;FS Financial Services while K Ramchandra was the Managing Director of IL&amp;FS Transportation Networks (ITNL). The arrests were made after the Serious Fraud Investigations Office (SFIO) filed its first chargesheet in late May, as a special case. “Arun Shah and K Ramachandra, former directors of IL&amp;FS, were arrested today by the Mumbai branch of ED. Further probe is underway,” an ED official <a href="https://economictimes.indiatimes.com/news/politics-and-nation/two-directors-of-ilfs-arrested-by-mumbai-ed-reports/articleshow/69863036.cms">reportedly</a> said. This is the second set of arrests as former IL&amp;FS CEO R C Bawa and another former director, Hari Sankaran are in judicial custody, after SFIO arrested them. Another former chairman of the company, Ravi Parthasarathy could not be <a href="https://www.tribuneindia.com/news/business/former-md-of-il-fs-financial-services-arrested-in-fraud-case/757866.html">taken into custody </a>due to health reasons. The ED registered a case in February under the Prevention of Money Laundering Act (PMLA) against 19 entities including ILFS Rail, ITNL. The registration was followed by searches conducted by the agency in Mumbai and Delhi. The SFIO had later unearthed multiple counts of fraud and criminal conspiracy, after investigation. There were also instances of misreporting, dubious transactions, conflict of interest, and the ever-greening of loans. Personal enrichment of top level employees was also a part of the many things that went wrong at the non-banking finance company (NBFC). The scam surfaced in July last year as IL&amp;FS’ debt ballooned to ₹910 billion, of which ₹570 billion are bank loans. The huge amount of money it defaulted on, has left the country's banks and other lenders reeling under a cash crunch ever since. Government had superseded the board of IL&amp;FS in October with a new board under Kotak Mahindra’s head Uday Kotak’s stewardship, <a href="https://www.moneycontrol.com/news/business/ed-makes-first-arrest-in-ilfs-case-4116731.html">according to reports</a>. This case has also landed its auditors Deloitte Haskins &amp; Sells and BSR &amp; Associates in trouble, for not identifying its problems. The Ministry of Corporate Affairs wants to ban both the auditors for five years, for their involvement in the scam.

IL&FS case: The latest arrests in India's largest financial scandal of 2018 are for alleged money laundering

New Delhi, Feb 10 () Crisis-hit IL&amp;FS Group has received approvals from various government authorities for claims worth about Rs 2,700 crore towards stuck or incomplete road projects, officials said. The NHAI Conciliation Committee recently approved a claim for approximately Rs 707 crore for the ILFS-Fagne Songadh Expressway Limited project (in Gujarat-Maharashtra border area), while the committee had earlier approved claims of Rs 902 crore for the Khed Sinnar Expressway project (in Maharashtra). Other projects for which claims have been approved include Kiratpur Ner Chowk Expressway Limited for Rs 672 crore (in Himachal Pradesh) and Jorbat Shillong Expressway Limited for Rs 252 crore (Meghalaya). Additionally, the Ministry of Road, Transport and Highways had cleared claims of ITNL Road Infrastructure Development Company (IRIDCL) for Rs 144 crore. In case of both Jorbat Shillong and IRIDCL projects, the settlement agreements have been duly signed with authorities, officials said. When contacted, an IL&amp;FS spokesperson declined to comment. In October 2018, the government had seized control of the debt-trapped company and superseded its board by appointing a new one, led by eminent banker Uday Kotak as its chairman. The new board, as part of the overall resolution process for the IL&amp;FS Group, has sold a number of assets to clear dues and debt. Officials said these initiatives of engaging with various authorities such as the Ministry, NHAI and NHIDCL for settlement of claims relating to incomplete and terminated projects and for compensation claims filed in respect of certain operational projects, is part of the new board's resolution process. The ministry in March 2019 had formulated guidelines for resolution of stuck projects (mainly incomplete projects) and provided parameters for authorities to foreclose the concession agreement and pay compensation being the lower of value of work done and 90 per cent of debt due. Cash-strapped Infrastructure Leasing &amp; Financial Services (IL&amp;FS) in December reported a standalone net loss of Rs 22,527 crore for the fiscal ended March 2019. It reported revenue of Rs 824 crore, massively down from Rs 1,734 crore in the previous year. This was the first earnings announcement after the government sacked its board in October last year. As of March 31, 2019, total assets stood at Rs 4,148 crore, a pale shadow of Rs 23,868 crore year-ago, while its liabilities rose to Rs 21,083 crore from Rs 18,276 crore in the previous fiscal. The company had said at that time that the board gas adopted prudent provisioning on loans/impairment for investments, besides taking a conservative view on fair market value and recovery estimates. As of October 8, 2018, the group has an external fund based debt of Rs 94,216 crore and an additional non-fund based debt of Rs 5,139 crore. BJ MRMR

IL&FS gets govt approval for Rs 2,700 crore claims towards stuck road projects

The Department <keyword id="6310265" type="COMPANY" weightage="20" keywordseo="of-economic-affairs">of Economic Affairs</keyword> had earlier raised red signals over the likely collapse of IL&amp;FS in a confidential note on September 30, 2018 and expressed concerns over its impact on the Indian economy, according to a latest affidavit filed by the <keyword id="153101" type="COMPANY" weightage="20" keywordseo="Corporate-Affairs">corporate affairs</keyword> <keyword id="8787526" type="COMPANY" weightage="20" keywordseo="ministry-the-ministry">ministry.The Ministry</keyword> of Corporate Affairs (MCA) in the affidavit said the DEA had opined that if IL&amp;FS group collapses, the Indian economy may have to face repercussions as redemption pressure would continue, debt market sell-off expected, may create liquidity crunch and NBFC licenses could be cancelled. "DEA had raised red signals of the likely collapse of IL&amp;FS and had expressed its deep concern of such a collapse on the Indian economy," said MCA in the affidavit filed before the National Company Law Appellate Tribunal (NCLAT). Immediately after that, the MCA had moved the National Company Law Tribunal to take over the management of IL&amp;FS, which had a debt exposure of over Rs 91,000 crore. According to DEA, "AMCs having exposure of Rs 2,800 crores to IL&amp;FS bonds would get redemption pressure from Corporate Clients". It further added that it was impossible for such mutual fund schemes to get the redemption amounts in a short period of time. "Further, illiquid Corporate Debt Market and DHFL saga may force AMCs to sell government securities. Hence, the government securities would face a huge selling pressure so either Bond Yield will shoot up to 8.30-8.50 per cent levels or the RBI has to do OMO (open market operations). "If RBI opts for OMO, then the government's spending capacity will reduce by an equal amount," it had said. DEA said that NBFC licenses could be cancelled also. "In the wake of the IL&amp;FS crisis, as many as 1,500 smaller NBFCs may have their license cancelled because they do not have adequate capital," it had said. Moreover, there also could be liquidity crunch and recent events hitting market sentiments will lead to cost of fund for NBFCs increasing, impacting profitability. The RBI's liquidity inducing measures and announcements have helped government bond yields to drop to 8.05-8.08 levels, but corporate bond yields have risen further by about 40-50 bps post IL&amp;FS crisis. "Primary market in Corporate bonds has completely dried up as no one is willing to bar currently in expectation of further redemption from MF's," it added. Though IL&amp;FS group is not inconsequential, but exposure of the banks to the NBFC sector is about 16 per cent. "Therefore, there is a substantial public interest in ensuring financial solvency and good governance and management of this group," it added. According to the affidavit, IL&amp;FS has an aggregate debt of Rs 94,215 crore as of January 2020, in which Rs 10,173 crore (around 10.79 per cent) is collectively from public fund creditors as pension funds, provident funds, employee welfare funds, gratuity funds and army group insurance funds etc. Rs 44,075 crore debt, which is 47 per cent, is collectively from the commercial banks, the affidavit said. Moreover, the aggregate debt of its four key holding companies -- Infrastructure Leasing &amp; Financial Services (IL&amp;FS), IL&amp;FS Financial Services, IL&amp;FS <keyword id="5054155" type="DOMAIN" weightage="20" keywordseo="Transportation-Networks-Ltd">Transportation Networks Ltd</keyword> (ITNL) and IL&amp;FS <keyword id="719770" type="DOMAIN" weightage="20" keywordseo="Energy-Development-Company-Ltd">Energy Development Company Ltd</keyword> (IEDCL) - is almost 51 per cent, which is Rs 48,000 crore. IL&amp;FS group comprised of 302 entities, of which 169 entities are incorporated in India and 133 entities abroad. The new board has classified the 169 companies into different categories and has asked to release 55 companies from its protection shield of order dated October 15, 2018. In the affidavit, it has also asked the NCLAT to release nine other companies from the scope and operation of the October 2018 order so that they can discharge their debt obligations. While for rest 105 IL&amp;FS group companies, it has sought additional 270 days to complete their resolution process. Passing an interim order on October 15, 2018, the NCLAT had stayed all proceedings against IL&amp;FS group companies, whose total debt is Rs 94,215 crore. The government is conducting resolution process of IL&amp;FS based on the principles enunciated in the Insolvency and Bankruptcy Code. It has appointed retired Supreme Court judge Justice D K Jain to supervise the entire process.

IL&FS crisis was red-flagged in 2018 'confidential' note by the DEA

NEW DELHI: As we inch closer to the Budget 2014, Dalal Street is abuzz with expectations of strong pro-growth reforms from Finance Minister Arun Jaitley. 
 
Given high expectations from the government, all attempts are expected to be made to present a comprehensive Union budget. However, the residual period until the next Budget to be presented is relatively small. 
 
Experts feel that the focus of the new government would be more on creating opportunities for retail investors in financial markets. But it is definitely not going to be a cakewalk for them. 
 
“The budget itself is not going to be a cakewalk. In fact, it is going to be a tight rope walk for the government,” said Killol Pandya, Senior Fund Manager-Debt, LIC Nomura MF. 
 
“The economy has certain structural and macro issues which it is facing and the government will be at pains to balance putting our growth story back on track while battling the inflation bugbear,” he added. 
 
The fact is that most of the steps which the government can take to promote growth and kick start the economy will have short-term inflationary ramifications. However, in terms of market performance, analysts see the markets rallying nearly 5-6 per cent in the run-up to the event. 
 
 
 
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Traders carried forward bullish futures bets to the July series on the expiry of the June contracts on Monday on expectations the market could rebound in the run-up to the Union Budget on July 10. 
 
Fresh build-up of positions in Nifty options suggests the benchmark index could gain about 5-6% by the Budget day from the current levels, said an ET report. 
 
Most analysts are of the view that despite escalating tensions in Iraq and depreciating rupee, Indian markets should be able to scale higher from the current levels, supported by strong FII flows and as most of the oil, which is imported, comes from the southern region, which remains unaffected. 
 
“The overweight by international investors in India will be highest in the whole emerging market space and we think it will continue. We think there is a re-rating going on in India,” said Hans Goetti, Head of Investment Asia, BIL. 
 
“We think if there is a new earning cycle start on the back of a stronger economy, then it can grow at about 6.5 per cent for several years, accompanied by higher prices in the equity markets,” he added. 
 
History suggests that the Union Budget’s influence on the market’s short-term performance is declining, but the next budget could still leave a trail of impact. 
 
The upcoming budget could be important because of where India is placed cyclically, what the mandate for the government implies and because this is the first non-Congress government in a decade, say experts. 
 
“Though history suggests that the budget’s influence on short-term performance is declining, expectations (measured by pre-budget performance) are still important in deciding what the market does after the budget,” said Ridham Desai, India Strategist at Morgan Stanley, in a report. 
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“If the pre-budget returns are positive, there is a 90% chance that the post-budget returns are negative,” he added. 
 
We have collated a list of ten stocks which investors can look at ‘buying’ ahead of the Budget 2014, for the next 12 months: 
 
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	Brokerage Firm: BofA-ML 
 
 
Titan Company Ltd: Target price set at Rs 406 
 <keyword id="10899" type="CITY" weightage="40" keywordseo="Titan-Industries">Titan Industries</keyword>, a Tata Group company, is India’s leading watch and jewelry retailer. Titan’s growth can pick up in FY15/16E as SSSG in jewelry bottoms out. This can be led by a favorable macro: easing inflation, possible pick-up in the urban job scenario and wage hikes. 
 While resumption of the sale of <keyword id="18712" type="ENTERTAINMENT" weightage="40" keywordseo="Gold">gold</keyword> coins can improve operating leverage, possible margin benefits due to focus on premiumization in jewelry as well as watches can boost earnings. 
 
ICICI Bank Ltd: Target price set at Rs 1,850 
 
The global investment bank is bullish on ICICI Bank as it has built a strong retail franchise to complement its corporate banking activities and capitalize on the fast-growing retail market. ICICI Bank has expanded distribution to 3,500 branches, allowing it to acquire customers at a very rapid pace and also gain share. 
 
The bank enjoys a strong capital position (Tier 1 at 12.8%), and is well placed to manage credit cycle/regulatory changes and deliver earnings growth of 16-22% through FY15/16. Outperformance should be driven by: 1) Op. efficiency (CI ratio improving to lesser than 38-39% in FY15/16 vs 41% in FY13); and 2) Credit cost at 80bps. 
 
Maruti Suzuki Ltd: Target price set at Rs 2900 
 Maruti Suzuki (MSIL) is a subsidiary of <keyword id="111052" type="CITY" weightage="40" keywordseo="Suzuki-Motor">Suzuki Motor</keyword> Corp, Japan. Set up in 1983, MSIL is presently India’s largest passenger car company which primarily sells compact hatchbacks (65% of volumes), vans and upper sedans. 
 
MSIL is our top pick in the Indian autos space, being best positioned to ride the country’s consumption recovery theme due to its rich product pipeline over the next three years. 
 
The stock deserves a valuation premium due to superior growth prospects (31% EPS CAGR over the forecast period) and also because it is the sole listed proxy in the domestic car industry. 
 
<keyword id="111992" type="CITY" weightage="40" keywordseo="Oil-India-Ltd">Oil India Ltd</keyword>: Target price set at Rs 694 
 
Oil India (OIL) is a state-owned (67.6% stake) E&amp;P company with only onshore production and exploration mainly in north-east India. This region accounts for its entire crude oil and most of its gas production and reserves. 
 
Gas price hike drives a 41-59% YoY rise in FY15E EPS at a gas price of US$6.8-9.0/mmbtu. A rise in oil price net of subsidy drives 34-70% YoY growth in FY15E EPS. FY15E EPS would rise by 60-114% YoY if the prices of both oil &amp; gas increase. 
 
Risk-reward ratio is evenly balanced with the worst-case fair value implying around 30% potential downside, and the best-case fair value implying a potential upside of 16-39%. 
 
Voltas Ltd: Target price set at Rs 282 
 
Voltas, a Tata Group company, is India’s leading air conditioning and engineering services company. It operates in India through an extensive dealer and service network. Cyclical recovery in macro will drive stronger consumer discretionary sales, ie AC. 
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There will better construction demand as well. Sharp expansion of margin led by favourable product mix change will be drive 80% of the 27% earnings CAGR in FY14-17. The stock is cheaper relative to peers and is likely to rerate along with stronger growth. 
 
Analyst: S Ranganathan of LKP 
 
Dishman Pharma: Target price set at Rs 160 
 
Dishman Pharma is an integrated global outsourcing partner in CRAMS for innovator drug companies and derives close to 65 percent of its 1400cr revenues from CRAMS with marketable molecules forming the balance 35 percent of its revenues. 
 
With all its capital expenditure behind, the company has forward integrated its Vitamin-D facility and with a 24 percent sustainable EBIDTA margin we believe that it is now focused on de-leveraging its balance sheet having a debt of 850 cr. 
 
We recommend a BUY on the stock trading at 8x the current year's expected earnings with a price objective of 160. 
 
Zensar Technologies Ltd: Target price set at Rs 500 
 
Zensar Technologies is a Rs 2300-cr software company of the RPG group, which derives two-third of its revenues from ETS (enterprise transmission solutions) and one-third of its revenues from IM (infrastructure management). Zensar has the largest Oracle practice business in India and has a strong focus on digital transformation, which is primarily a consulting-oriented business. 
 
The company has consistently grown at a CAGR of more than 20 percent over the past 5 years both on top-line and bottom-line. Zensar (a debt-free entity) with a sustainable EBIDTA margin of more than 30 percent is well on its way to post a net profit of close to Rs 300 cr this fiscal. BUY with a price objective of Rs 500. 
 
ITNL: Target price set at Rs 250 
 
ILFS Transportation Network Ltd is a leading surface transportation infrastructure company belonging to the ILFS group. We believe that ITNL is the best proxy to play this theme not only in India, but also outside India and could be a prime beneficiary of the road development projects. 
 
This business is highly capital intensive and hence the high debt equity of 3x. ITNL with its 6500cr revenues is well placed to capitalize on the large addressable opportunity as it has attractive EBIDTA margins of 30 percent. Buy ITNL with a price objective of Rs 250. 
 
Escorts Ltd: Target price set at Rs 160 
 
Escorts with business interests in agricultural equipment, construction and railway equipment is the third largest player in tractors and is now launching new products in the mid to heavy segment of tractors and is aggressively foraying into the southern parts of the country where it lacks presence. 
 
The monsoon, although delayed, is expected to gather momentum in the next 3 months, which would also act as a positive trigger for the stock in the coming quarter. ESCORTS trading at 6.5x historical earnings should be bought with a price objective of 160. 
 
Federal Bank: Target price set at Rs 160 
 
Federal Bank was punished rather unjustly for its aggressive lending to the SME sector where it has seen fast traction and we believe that the markets have now factoring in the fact that its asset quality continues to be good with net NPA at 0.74% and provision coverage at a very healthy 84%. 
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The bank has a very healthy CASA of more than 30% and net interest margins are at a healthy 3.3% with branch expansion happening at a faster clip ( it now has 1175 branches) 
 
A quality private sector bank with an able leader available at a compelling price to book of 1.5x should be bought for a price objective of Rs 160. 
 
(Views and recommendations expressed in this section are the analysts’ own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the stocks mentioned.)

You Searched For "ITNL" and got 12 results

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PTI

India's largest owner of road assets' shares jumped on news of company's prospective fund raising plans

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Rs. 2,288 crore contract working in favour of IL&FS in the markets

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NCLAT directs NHAI not to terminate concession agreement of IL&FS group entity

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IL&FS money laundering case: ED summons Maha NCP president & MLA Jayant Patil

PTI

IL&FS replaces auditor SRBC & Co amid allegations of professional misconduct by NFRA

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Govt seeks additional 270 days to complete resolution for 105 IL&FS group companies

PTI

IL&FS seeks extension of bid validity for 5 road projects facing Rs 10,500-cr debt

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IL&FS case: The latest arrests in India's largest financial scandal of 2018 are for alleged money laundering

BI India Bureau

IL&FS gets govt approval for Rs 2,700 crore claims towards stuck road projects

PTI

IL&FS crisis was red-flagged in 2018 'confidential' note by the DEA

PTI

Budget 2014 No Cakewalk For Government, Says Expert; Top Ten Stocks To Buy

Economic Times

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