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Last Updated : Aug 14, 2019 08:18 PM IST | Source: PTI

55 of 169 domestic arms of IL&FS self-sustainable: RP report

Asp per the filing, 13 entities are classified amber as they are not able to meet financial obligations during the period and could only meet operational payments obligations.

Of the 169 domestic subsidiaries of the bankrupt IL&FS Group, the resolution professional has classified 55 as green in its fifth progress report submitted to the NCLT as none of them had any defaults/pending overdues, or any issues with cash-flow from its operations.

These 169 entities have been classified into three categories--green, amber and red--based on their cash flows in the last 12 months, according to a filing by the RP to the tribunal Thursday.

Asp per the filing, 13 entities are classified amber as they are not able to meet financial obligations during the period and could only meet operational payments obligations.

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Further, 82 entities are classified as red, while 8 are going in for liquidation and classification of 11 are currently underway, it added.

The IL&FS board, headed by banker Uday Kotak, also said the 'red' entities owe Rs 61,375 crore, while the 'amber' entities owe Rs 16,372.6 crore and 'green' owe Rs 11,022.9 crore. And the 11 entities yet to be classified, owe a debt of Rs 5,895.9 crore.

The progress report also said assets for which sale process has been launched so far (except certain non-core assets) account for about Rs 50,000 crore of the total outstanding fund-based debt of Rs 94,000 crore.

Meanwhile, the report mentioned that under manpower optimisation measures, the total headcount has come down by 36 percent by June 13, 2019 resulting in 53 percent cost reduction, the report said without quantifying the total number of employees or the net remaining now.

For manpower optimisation, the board has identified redundant roles/functions in respect of eight more verticals/ entities, including IL&FS, ITNL,IFIN, IL&FS Energy Development Company and IL&FS Engineering & Construction Company.

"The approach used for rationalisation of manpower in these entities involved undertaking an assessment of viability and continuation of projects being undertaken by these business verticals," said the fifth progress report.

Further, the next set of four verticals have been identified, the results of which will be released in the next few months, it added.

The manpower optimisation implemented across the group have cumulatively resulted in a 43 percent reduction in the headcount between October 1, 2018 and June 30, 2019 leading to saving of nearly 47 percent in the annual wage bill.

The board also said it has reduced the operating cost for the year to March 2019 by about 26.22 percent.

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First Published on Aug 14, 2019 08:16 pm
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