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Dewan Housing Finance Corporation reported a consolidated net profit of ₹96.75 crore for the fourth quarter of 2020-21 as against a net loss of ₹7,507.01 crore a year ago.
For the full fiscal 2020-21, it had a consolidated net loss of ₹15,051.17 crore compared to a net loss of ₹13,455.81 crore in 2019-20. For the fourth quarter, DHFL reported a 22.4 per cent drop in its total revenue from operations at ₹2,034.53 crore versus ₹2,623.40 crore a year ago. Total income also declined to ₹2,060.57 crore for the fourth quarter last fiscal from ₹2,160.98 crore a year ago.
“...the company has not made any provision for interest on borrowings amounting to ₹1,91,213 lakh and ₹7,65,155 lakh for the quarter and year-ended on March 31, 2021, respectively, in view of its current Corporate Insolvency Resolution Process,” said the results.
If the interest had accrued on borrowings and provided for, the profit for the quarter-ended March 31, 2021 would have been lower by ₹1,42,205 lakh (net of taxes) and the loss for year ended March 31, 2021 would have been higher by ₹5,69,046 lakh respectively (net of tax), it further said.
Negative net worth
As on March 31, 2021, it had a negative net worth of ₹20,645.31 crore. Total assets amounted to ₹70,358.66 crore while total liabilities stood at ₹91,003.97 crore.
The investments and advance by way of unsecured Inter Corporate Deposits (ICD) including interest receivable aggregating ₹4,109.24 crore are outstanding as on March 31, 2021. The provision for the entire ICD amount has been made due to lack of security.
Noting that DHFL has accumulated losses due to which its net worth has been fully eroded, the auditor’s note said that its ability to remain as a "going concern" depends on the outcome of the ongoing CIRP.
“During this quarter-ended March 31, 2021, additional transactions amounting ₹12,73,574 lakh have been identified and reported by the company to Stock Exchanges and National Housing Bank and RBI as fraudulent, undervalued and preferential in nature,” it further said.
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