BACKGROUND OF IL&FS

Infrastructure Leasing & Financial Services Limited (IL&FS) is an Indian infrastructure

development and finance company.

It was formed in 1987 as an "RBI registered Core Investment Company" by three financial
institutions, namely the Central Bank of India, Housing Development Finance Corporation
(HDFC) and Unit Trust of India (UTI), to provide finance and loans for major infrastructure
projects.

It operates through more than 250 subsidiaries including IL&FS Investment managers, IL&FS
financial services and IL&FS Transportation networks India Limited (ITNL).

 IL&FS is a non-banking financial company (NBFC). Among IL&FS shareholders are LIC, SBI,
Japan's Orix Corporation, HDFC and CBI.

THE BUSINESS:

Infrastructure Leasing & Financial Services Limited is one of India's leading infrastructure
development and finance companies. Its central mandate is catalysing the development of
innovative world-class infrastructure in the country.

For over 25 years, They focused on commercializing infrastructure projects and creating value-
added financial services to become a proactive partner in India’s growth story.

Widely acknowledged as the pioneer of Public Private Partnership (PPP) in India, the IL&FS
Group has, through a variety of projects, benchmarked the private sector’s role in and
commitment towards infrastructure development in India.

Some of the projects it has helped develop are 9-km Chenani-Nashri tunnel (India’s longest
road tunnel), Delhi-Noida Toll Bridge, Ranchi-Patratu Dam Road, Baleshwar-Kharagpur
Expressway, Tripura Power Project, and Gujarat International Finance Tech-City (GIFT).

THE PROBLEM:

IL&FS Financial Services, a gathering organization, defaulted in installment commitments of

bank advances (counting premium), term and momentary stores and neglected to meet the
business paper reclamation commitments due on September 14. On September 15, the
organization revealed that it had gotten sees for postponements and defaults in adjusting a
portion of the bury corporate stores acknowledged by it. Subsequent to defaults, rating
organization ICRA downsized the appraisals of its present moment and long term borrowings.