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| Exchange Received Time 24/08/2018 16:53:28 Exchange Disseminated Time 24/08/2018 16:53:33 Time Taken 00:00:05 | We refer to your email dated August 23, 2018 in relation to the news item in DNA, titled 'IL&FS firms have brush with ''wilful default'' tag' ('News Item')
In response to the queries mentioned in your email, we would request you to kindly note the following:
(a) The Company had entered into construction contract with a Vendor for Amravati-Chikli Road Project being developed by the Company who in turn had sub-contracted part of the works. The sub-vendor had availed bill discounting facility from Tata Capital Financial Services Limited (Lender) under their sales invoicing discounting facility. To provide comfort to the Lender, the Company had agreed to co-accept the bills. As per the terms of the facility, in case of the sub-vendor was unable to make good the obligation, the lender was to approach the vendor for the payment and failing which the Company was to ensure that such unpaid amounts are paid to the lender
(b) Since the sub-vendor and vendor failed to make good the payments on due dates, the Lender had approached the Company being comfort provider for recovering the payments. The matter was amicably discussed and settlement arrived at with the Lenders. In view thereof, we categorically deny that there has been any willful default by the Company
(c) In view of the aforementioned, we are unable to comment on any implications of the matter referred to in the News Item
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