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.

Key Financial Figures

IL&FS Transportation Networks Limited has successfully completed its third interim distribution payments to Non-Convertible Debenture (NCD) holders across 31 ISIN series between April 16-17, 2026. The company has formally notified the National Stock Exchange of India Limited about the completion of payments, marking a significant milestone in the ongoing resolution process.

Payment Completion and Timeline

The company fulfilled its obligations under Regulation 51 of SEBI LODR (Listing Obligations and Disclosure Requirements) by confirming successful execution of payments. The distribution was initiated following the record date of April 10, 2026, which determined the eligible debenture holders for this interim payment.

ISIN Series Payment Schedule

The third interim distribution was executed in two phases. The first phase on April 16, 2026, covered 16 ISIN series, while the second phase on April 17, 2026, encompassed an additional 15 ISIN series.

Phase 1 - April 16, 2026 (16 Series)

Phase 2 - April 17, 2026 (15 Series)

Distribution Framework and Authorization

The interim distribution continues to be executed pursuant to Hon'ble NCLAT's Orders dated March 12, 2020, May 31, 2022, and February 13, 2023. The distribution calculations have been professionally handled by Alvarez & Marsal India Private Limited, serving as Resolution Consultants, and Grant Thornton Bharat LLP, appointed as the Interim Distribution Process Consultants.

Impact on Debenture Values

Consequent to these payments, the value of Non-Convertible Debentures under all 31 ISINs has been diminished to the extent of the aggregate payments made under the first, second, and third interim distributions. This reduction in admitted claim value reflects the progressive resolution of the company's debenture obligations.

Regulatory Compliance and Oversight

The distribution process maintains proper oversight through coordination with IDBI Trusteeship Services Limited and Vistra ITCL (India) Limited. Both entities have been kept informed of the payment completion, ensuring transparent execution of the distribution framework. The company has also notified BSE Limited as part of its comprehensive regulatory compliance approach, demonstrating adherence to all applicable listing requirements.