IL&FS Transportation Networks has confirmed that no new encumbrances were created on its shares by promoter Infrastructure Leasing & Financial Services Limited during the financial year ending March 31, 2026. The disclosure was made to the National Stock Exchange of India Limited pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company stated that any encumbrances on its shares remain limited to those already disclosed to the stock exchanges.

IL&FS acts as a promoter of IL&FS Transportation Networks, holding investments along with IL&FS Financial Services Limited as a Person Acting in Concert (PAC). In FY 2013-14, the promoter offered its shares held in the company as security, excluding shares held by IL&FS Financial Services, to the Debenture Trustee. This action was taken to safeguard the interests of debenture holders, forming part of a pooled assets security package.

The total security package offered to the Debenture Trustees includes shares of IL&FS Transportation Networks, with a lien established in favour of the Debenture Trustee. The company clarified that this transaction is not classified as a "Loan against securities". Consequently, a specific charge against the shares held by IL&FS in IL&FS Transportation Networks is not marked as a pledge in the records of the Depository Participant.

IL&FS Transportation Networks reported a net loss of ₹14,147.83 crore for the year ended March 31, 2019, in its audited revised standalone financial results approved by the Board on June 26, 2026. The company voluntarily revised its financial statements consequent to the recasting of its accounts for the five-year period ended March 31, 2018, following an order from the National Company Law Tribunal (NCLT) dated March 07, 2025. The revision was undertaken to incorporate the impact of the recast financial statements for FY 2013-14 to FY 2017-18 by adjusting opening balances carried forward to FY 2018-19. The results were published in newspapers, Financial Express and Navshakti, on June 27, 2026.

The auditor's report, issued by C N K & Associates LLP, highlights a material uncertainty related to the company's status as a going concern. As of March 31, 2019, the company reported net liabilities of ₹13,866.91 crore. The report notes that the company's credit ratings were downgraded post-September 2018, substantially impairing its ability to raise funds and curtailing normal business operations. Despite these conditions, the auditor's opinion was not modified regarding this specific matter.

The financial results include several emphasis of matter points drawn from the notes to the revised financial statements. These include observations by forensic auditors indicating potential issues, though no conclusive quantification of loss was available. The report also references an investigation by the Serious Fraud Investigation Office (SFIO), which has been completed with a charge sheet filed before the Sessions Court at Greater Mumbai on September 01, 2023, though the company was not named in the charge sheet. Additionally, an investigation by the Central Bureau of Investigation (CBI) was initiated based on FIRs filed in 2023.

The revised accounts disclose that the company did not account for contractual interest income of ₹322 crore and contractually payable finance costs of ₹745 crore for the period from October 16, 2018, to March 31, 2019. This treatment was based on an NCLAT order specifying October 15, 2018, as the cut-off date for the initiation of the resolution process, which deviates from applicable accounting standards. Furthermore, the company paid remuneration aggregating ₹3.21 crore to erstwhile senior executives, which exceeded the limits prescribed under Section 197 of the Companies Act by ₹1.44 crore. The excess amount is considered recoverable, though the probability of recovery remains uncertain.

The audit opinion is qualified due to the reliance on the original financial results for the year ended March 31, 2019, which were audited by the then statutory auditors, M/s S R B C & Co LLP. Those auditors had issued a disclaimer of opinion in their report dated June 04, 2020. The current auditors stated that their scope was limited to giving effect to the recasting of financial results for the prior period and any consequential changes, and thus they did not consider the matters covered in the previous disclaimer of opinion.

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