The special auditor of debt-laden IL&FS Group, Grant Thornton, has found multiple financial irregularities in deals with financial implications worth over Rs 13,000 crores.
According to a PTI report, Grant Thornton has marked down 29 instances of irregularities where the loan amount disbursed to borrowers was used by the IL&FS group companies to repay its own debt obligation.
The auditors also identified 18 instances where the loans were granted to borrowers who had assets under stress and had a negative risk assessment. This affected loans worth over Rs 2400 crores. The auditors also reported 10 major anomalies, with a number of potentially irregular transactions, taking the aggregate sum to Rs 13,290 crore.
Grant Thornton also pointed out to 16 other instances where loans were granted on a negative spread or limited spread for companies in financial distress, which affected loans worth Rs. 1,922 crores. Some of these loans have been written off.
The cash-starved IL&FS group, which operates 24 direct and 135 indirect subsidiaries, is currently sitting over the debt of Rs 94,000 crores. Since August 2018, the company has been defaulting on bank loans and other debt repayments.
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