DHFL posts net loss of Rs 13,095 crore in Q3FY21

Dewa Housing Finance Corporation (DHFL) on Saturday posted a consolidated net loss of Rs 13,095.38 crore in the third quarter ended December 2020 against a net profit of Rs 934.31 crore in the year ago quarter. Sequentially, the company witnessed widening of net loss from Rs 2,122.65 crore in the second quarter ended September 2020.

Crisis-ridden DHFL, which is under the process of Corporate Insolvency Resolution Process (CRIP), under the provisions of Insolvency and Bankruptcy Code, 2016 said during this quarter, additional transaction amounting to Rs 1,039.84 crore has been identified and reported by the company to stock exchanges and National Housing Bank (NHB).

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The company has made provisions as per NHB guidelines on provisioning pertaining to fraud accounts.

The company, now being run by an RBI appointed administrator, is being investigated by the Ministry of Corporate Affairs from December 2019 through the Serious Fraud Investigation Office (SFIO) to look into the affairs of the company.

The Enforcement Directorate is also probing the company in connection with loans given by it to certain borrowers. The Central Bureau of Investigation has also initiated an investigation in connection with certain loans granted by the company.

Apart from this CBI is also investigating into the matter of amounts invested by an Uttar Pradesh State Government entity - Provident Fund in the Fixed Deposits of the company.

"The company is fully cooperating with all the investigating agencies and providing the necessary information/data as and when the same is sought," DHFL said.

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The company's chartered accountant, KK Mankeshwar & Co in its limited review report, said that the net worth of the company is fully eroded, rendering the company unable to comply with the regulatory requirements of NHB in respect of the Net Owned Fund (NOF) and which also resulted in multiple contraventions of the provisions of NHB Act, 1987, Directions and Guidelines thereon.

"Although the aforesaid non-compliance may in ordinary course result in potential action against the company by NHB in this regard, we are not commenting on the same since the company is presently under moratorium imposed by the NCLT which prevents any actions against the company," it said.