DHFL’s auditors raise red flags around quarterly results

Dewan Housing Finance Corp Ltd (DHFL), one of India’s biggest housing finance company has filed its long-pending audited results for the quarter that ended on March 31. The company has revealed that its auditors have raised red flags around its number, which has raised major concerns for the future of the company.

DHFLwhich is in debt for almost 1 trillion rupees (USD 14.52) has been under liquidity crunch, post-IL&FS crisis that has affected the Non-banking Finance Companies (NBFCs) around the country.

 DHFL has been making rounds in media over the allegations of fraud and improper lending practices that have frightened investors and led to a steep fall of shares to decade-low levels.

“The allegations are unfounded and malicious. An independent auditor appointed by DHFL’s board to probe the allegations gave the company a clean bill but noted that the firm’s monitoring of loans was inadequate,” DHFL has said.

The company said that “its audited results were largely in line with the unaudited net loss it reported on July 13. But the auditors’ concerns disclosed on Monday could put the company’s plans to restructure debt and inject fresh capital through a stake sale into doubt.”

Deloitte Haskin & Sells and Mumbai-based Chaturvedi & Shah, DHFL’s two auditors said in a regulatory filing, “We were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the statemen

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