A report has emerged stating that five subsidiaries of the troubled infrastructure major IL&FS lost more capital than the rest of the subsidiaries put together. The five subsidiaries in question totalled a collective loss of Rs 1,320 crore, which amounted to 70 per cent of the consolidated loss posted by IL&FS for the financial year ending March 2018.
These worst-performing subsidiaries are IL&FS Tamil Nadu Power Company, IL&FS Maritime Infrastructure Company, Rapid MetroRail Gurgaon South, Chenani Nashri Tunnelway and MP Border Checkpost Development Company. Of particular concern is the fact that these five subsidiaries are not the only group entities struggling financially, with reports emerging that other project subsidiaries are facing issues of default and material breaches by concerned authorities.
The company, on its part, has stated that it was in the process of claiming damages and examining the possibility of terminating contracts in the event that a satisfactory resolution could not be arrived at.
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