Dewan Housing Finance Ltd (DHFL) on Sunday reported widening of its FY21 consolidated net loss to Rs 15,051.17 crore as compared with a loss of Rs 13,426.85 crore in FY20.
Total income declined to Rs 8,802.79 crore in FY21 from Rs 9,578.85 crore in FY20.
However, the company, which is under corporate insolvency process, posted a profit of Rs 96.75 crore in January-March quarter. It had posted a net loss of Rs 7,507.01 crore crore in the year-ago quarter, while it reported a loss of Rs 13,095.38 crore in October-December quarter of 2020.
Total consolidated income during Q4 of FY21 fell to Rs 2,060.57 crore from Rs 2,160.98 crore in Q4 FY20.
DHFL said it had a balance of Rs 10,209.62 crore as deferred tax asset as on March 31, 2021. It said the company is running as a going concern as per the provisions of Insolvency and Bankruptcy Code (IBC), which requires that the value of the company is preserved and maintained as a going concern.
DHFL said it did not make any provision for interest on borrowings amounting to Rs 1,912.13 crore and Rs 7,651.55 crore for the quarter and year ended March 31, respectively, in view of the company's corporate insolvency process.
"Under the IBC, the treatment of creditors under the resolution plan is as per debts due as on the insolvency commencement date and therefore, no interest is accrued and payable after this date. Had the interest accrued on borrowings and provided for, the profit for the quarter ended 31st March 2021 would have been lower by Rs 1,422.05 crore (net of taxes) and loss for the year ended 31st March, 2021 would have been higher by Rs 5,690.46 crore (net of tax)," it said.
DHFL is currently being run under an administrator appointed by the RBI in November 2019. It is the first finance company to be referred to the NCLT by the RBI. The lenders of the company classified the account as fraud on alleged fund diversion by promoters Kapil Wadhawan and his brother Dheeraj Wadhawan.
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