1. IL&FS is a major infrastructure financing non-banking financial company in India that funds projects like roads, tunnels, and bridges. It is facing liquidity issues as it defaulted on some payments. 2. The company raises funds through short-term financing but provides funds for long-term infrastructure projects, which did not earn enough quickly to repay the short-term loans. It has total liabilities of Rs. 91,000 crore with Rs. 17,000 crore in short-term liabilities. 3. After the resignation of its director due to health issues, several group companies began defaulting on loan repayments, and the National Company Law Tribunal replaced the board of directors.

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ILFS Case
P r e s e n t e d B y : P u s h p e n d r a S i n g h

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Introduction
I n f r a s t r u c t u r e L e a s i n g & F i n a n c i a l S e r v i c e s ( I L & F S )
i s N B F C .
F o u n d e d i n 1 9 8 7
I n i t i a l l y p r o m o t e d b y C e n t r a l B a n k o f I n d i a , U T I ,
H D F C
I t f u n d s I n f r a s t r u c t u r e p r o j e c t s a c r o s s I n d i a ,
R o a d s , Tu n n e l s , M e t r o , B r i d g e s a r e f u n d e d b y i t .
M a j o r s h a r e h o l d e r s o f I L & F S 0 L I C ( 2 5 . 3 % ) , J a p a n ’ s
O r i x C o r p ( 2 3 % ) , A b u D h a b h i I n v e s t m e n t
A u t h o r i t y ( 1 2 . 5 6 % ) H o u s i n g D e v e l o p m e n t F i n a n c e
C o r p o r a t i o n ( 9 % ) C e n t r a l b a n k o f I n d i a ( 7 . 6 7 % ) &
S t a t e B a n k o f I n d i a ( 6 . 4 2 )
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What happened?
I F & L S d e f a u l t e d o n a f e w p a y m e n t s a n d f a i l e d t o
s e r v i c e i t s c o m m e r c i a l p a p e r s o n d u e d a t e .
C o m p a n y i s f a c i n g L i q u i d i t y I s s u e s
C o m p a n y p r o v i d e s F u n d s f o r p r o j e c t s f o r l o n g t e r m
p e r i o d s , b u t t h e i t r a i s e d t h e f u n d s t h r o u g h S h o r t
t e r m f u n d i n g .
C o m p a n y h a s To t a l L i a b i l i t y o f R s 9 1 0 0 0 C r o r e
O u t o f w h i c h 1 7 0 0 0 a r e s h o r t t e r m l i a b i l i t y a n d r e s t
L o n g t e r m L i a b i l i t y
I t h a s 11 5 0 0 0 0 C r o r e w o r t h o f a s s e t s t o c o v e r t h e
l i a b i l i t i e s .
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What went wrong
Shor t ter ms loans w er e tak en to pay for long
term projec ts ,
The pr ojec ts didn’t ear n enough or fas t
enough to pay off s hor t ter m loans
After R avi R amas w amy( D irector) s tepped
dow n ( health c ondition) s ever al c ompanies of
group began defaulting on loan repayments
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Measures
• NCLT( National Company Law Tribunal) come in play and replaced
the 15 Board of directors with 6 new board directors namely
• Uday Kotak, MD and CEO of Kotak Mahindra Bank
• Ghyanendra Nath Bajpai, Former Chairman LIC,
• Malini Shankar, IAS
• Vineet Nayar, Executive Vice Chairman of Tech Mahindra
• Girish Chand Chaturvedi, Non Executive Chairman of ICICI Bank
• Nand Kishore, Former Deputy Comptroller and auditor general
Serioud Fraud Investigation Office (SFIO) will probe weather any of the
loans granted to IL&FS were diverted for others purposeds.
To find out weather all due diligence was done before sanctioning of
such credit.
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Thank You