Auditors of the debt-ridden Dewan Housing Finance Corporation (DHFL), Deloitte Haskins and Chaturvedi & Shah, have sought more information from the company on its financials under Section 143 of the Companies Act, 2013. Section 143 of the Act pertains to powers and duties of auditors and auditing standards. In a stock exchange filing on Saturday, DHFL said the audit committee had directed the management to place "audited Ind AS standalone and consolidated financial results" on or before July 22, 2019. The filing also said the "un-reviewed and unaudited Ind AS standalone financial results" were placed before the audit committee and board of directors on July 13.
Meanwhile, experts suggest that the mortgage lender needs between Rs 2,500 crore and Rs 3,000 crore of fresh equity to carry on with its ongoing lending business. According to them, DHFL may find it difficult to on-lend some of its unfinished projects if it fails to get fresh equity investment. "According to assessments by potential investors, DHFL will need anywhere between Rs 2,500 crore and Rs 3,000 crore in fresh equity immediately to meet capital adequacy requirements," Mint quoted sources as saying.
DHFL has been the worst hit among NBFCs after the recent liquidity crisis triggered by the IL&FS fraud. In a statement issued on Monday, DHFL assured that it was working with its creditors and stakeholders on a resolution plan. "While the sectoral stress is well known for months, DHFL has withstood intense pressure and continues to remain strong and solvent," the company said, adding that DHFL had cleared a significant amount of obligation to the tune of Rs 41,800 crore since September 2018.
Two days after the company disclosed its financial results, DHFL stock plummeted to a 10-year low on Monday. DHFL share fell 32 per cent on the BSE on Monday before recovering to 29 per cent at Rs 48.50. DHFL had reported a net loss of Rs 2,223.41 crore for the March quarter of FY19, as opposed to a profit of Rs 184.1 crore in the corresponding quarter during the year-ago period and a profit of Rs 471.5 crore during the December quarter of FY 19.
Edited by Manoj Sharma