DHFL recovers after slipping 8%; auditors seek more info on financials
17/07/2019
new delhi: Shares of Dewan Housing Finance Corporation (DHFL) dipped 8 per cent in Tuesday's trade to hit an intra-day low of Rs 44.5 on the National Stock Exchange (NSE), after reports suggested that the company's auditors have sought more financial information from the management.
However, the counter revovered and was trading 2.7 per cent higher at Rs 49.8 levels at 10:15am. The stock had tanked 29 per cent on Monday to 10-year low.
As per a report, the two statutory auditors, Deloitte Haskins and Sells and Chaturvedi & Shah, had, on June 6, sought additional financial information from the company to reconcile its annual results for the 2018-19 financial year. The auditors invoked Section 143 of the Companies Act, 2013, which includes rules and regulations for auditors to report instances of fraud or suspected fraud.
According to the rules, which were last amended in 2015, the company is supposed to provide the information or give their observation within 45 days of receiving the request from the auditor. In case of DHFL, the 45-day period ends on July 21. In January this year, there were allegations against the company’s management and promoters over end use of certain funds loaned.
The audit committee of DHFL in its board meeting on July 13 asked the management to provide the audited financial results of the company by July 22, the report said.
DHFL released unaudited financial numbers reporting a standalone net loss of Rs 2,233 crore for the quarter ending March 2019, citing higher provisioning requirements.
The crisis-ridden housing finance company separately announced on Saturday it had defaulted on interest payments worth Rs 48 crore on non-convertible debentures (NCDs), due on July 6 and July 8.
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