NEW DELHI: IL&FS Transportation Networks, subsidiary of the debt-laden Infrastructure Leasing and Financial Services (IL&FS), on Friday reported a standalone loss of Rs 17,000.32 crore for fiscal year 2019-20 as against a standalone profit of Rs 251.76 crore reported during the financial year 2018-19. The group company did not provide figures for the fourth quarter of the fiscal 2019-20.
The troubled company cited COVID-19 disruptions as one of the reasons for its mammoth loss. However, several other reasons related to a drastic fall in its business activity since irregularities in the company were reported earlier is said to have dented its profits.
“As a result of the spread of COVID-19, economic uncertainties have arisen which are likely to negatively impact the timing of claim receivable by the Special Purpose Vehicle (SPVs) and asset monetisation, which may result into additional impairment of investments, trade receivables, loans and other receivables...Other financial impact could also occur though such potential impact is unknown,” the company said in a statement.
During the last fiscal year, it had reported sharp decline in its standalone total income to Rs 786.24 crore, as against Rs 4,709.48 crore a year ago. Its total expenses during the last fiscal year stood at Rs 3,014.37 crore as against Rs 4,377.69 crore in previous fiscal. It has also suffered consistent downgrades in its credit ratings since September 2018, as a result of which the company’s ability to raise funds has been substantially impaired, and normal business operations curtailed. “These conditions indicate the existence of a material uncertainty that may cast significant doubt on its ability to continue as a going concern,” it said.
