DHFL’s auditors raise several red flags
Deloitte has quit as the auditor of cash-strapped DHFL, sources said on Sunday. Communication regarding Deloitte quitting as DHFL’s auditor has been sent to the Ministry of Corporate Affairs, one of the sources said.
Another source confirmed that Deloitte has quit, but without citing any reasons. However, sources in DHFL denied to have received any such communication from Deloitte. There have been reports that Deloitte Haskins & Sells and the company’s second auditor, Chaturvedi & Shah, may quit due to unsatisfactory responses from the company to their queries related to fund deployment.
Cash-strapped DHFL sits on a debt pile of ₹90,000 crore and has defaulted on its various repayment obligations in a serial manner in the recent past. Earlier, DHFL had said that the company was working with its lenders to work out a debt resolution plan by July-end. However, company sources said it is yet to be finalised and likely to be chalked out in the coming week.
DHFL has been trying to generate funds through various means and has exited from its subsidiary units to tide over the current financial crunch. The company in mid-July posted its biggest-ever quarterly loss of Rs 2,224 crore for the quarter ended March of 2018-19 fiscal.
Also read: DHFL reports standalone net loss of Rs 2223 cr in Q4FY19
The financial results were delayed due to the ongoing concerns. The company is yet to announce the first quarter results of the current financial year.
The stocks of DHFL were trading 10.61 per cent lower at ₹41.70, at 11 am.
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