IL&FS Engg & Const Company , a company currently operating under the National Company Law Appellate Tribunal's (NCLAT) resolution framework, has reported substantial financial losses in its latest unaudited financial results.

Financial Performance

The company's unaudited financial results for the quarter and half year ended September 30 reveal a concerning financial situation:

These figures underscore the severe financial challenges faced by IL&FS Engineering and Construction Company Limited.

Resolution Process Update

Despite the financial setbacks, there are signs of progress in the company's resolution process:

• A successful bid has been approved by the Committee of Creditors.
• The approved bid is currently awaiting final approvals from:
  1. Justice D.K. Jain
  2. National Company Law Tribunal (NCLT)

Corporate Governance

In compliance with regulatory requirements, the company's Board of Directors convened on November 14 to approve the unaudited financial results. Key details of the meeting include:

• Meeting commencement time: 12:30 P.M.
• Meeting conclusion time: 3:40 P.M.
• Approval of unaudited financial results for Q2 and H1

The company has duly submitted these results along with Limited Review Reports to the stock exchanges, adhering to the Securities and Exchange Board of India (SEBI) regulations.

While the financial results paint a challenging picture, the ongoing resolution process and adherence to regulatory requirements demonstrate the company's efforts to address its financial situation and maintain transparency with stakeholders. The outcome of the pending approvals from Justice D.K. Jain and NCLT will be crucial in determining the future course for IL&FS Engineering and Construction Company Limited.

IL&FS Engg & Const Company , a prominent player in the construction and infrastructure development sector, has reported a significant decline in revenue and widened losses for the first quarter. The company's financial performance continues to be impacted by operational challenges and ongoing resolution processes.

Key Financial Highlights

• Revenue from operations declined by 51.8% to Rs 41.22 crore, compared to Rs 85.52 crore in the same quarter last year.
• EBITDA loss of Rs 7.71 crore, as opposed to an EBITDA of Rs 0.21 crore in the corresponding period.
• Net loss widened to Rs 9.42 crore from Rs 3.06 crore loss in the previous year's quarter.

Operational Challenges

The company faces continued operational hurdles, primarily due to:

1. Existing projects nearing completion
2. Contract cancellations resulting from adverse developments in the promoter group

Financial Position

• The company's net worth remains fully eroded.
• Current liabilities exceed current assets by Rs 3,829.36 crore.
• IL&FS Engineering is categorized under 'Red' entities by the IL&FS board, indicating its inability to meet financial obligations.

Resolution Process

As part of the ongoing resolution process:

• A bid from an unincorporated consortium has been received and approved by the Committee of Creditors.
• The approved bid will be placed before Justice D.K. Jain (Retd.) for approval, followed by submission to the National Company Law Tribunal (NCLT).

Going Concern Status

The company's ability to continue as a going concern is dependent on the positive outcome of the resolution process initiated by the Reconstituted Board. This process aims to restructure the debt and resume normal operations.

Management Commentary

Nand Kishore, Non-Executive Chairman of IL&FS Engineering and Construction Company Limited, stated, "The company is cooperating with various regulatory authorities and investigative agencies as part of ongoing proceedings. We are focused on the resolution process and are working towards restructuring our debt to ensure the company's future viability."

Outlook

The future of IL&FS Engineering and Construction Company Limited hinges on the successful implementation of the resolution plan. The management remains committed to navigating through these challenging times and working towards a turnaround in the company's fortunes.

Investors and stakeholders are advised to closely monitor the developments in the resolution process, as it will play a crucial role in determining the company's future trajectory.