Total income fell 39% year-on-year (y-o-y) to Rs 2,114 crore, while income from operations showed a similar decline to Rs 2,107 crore.
Dewan Housing Finance Corporation (DHFL) on Thursday reported a net loss of Rs 6,705 crore for the September quarter, compared with a net profit to Rs 438.74 crore in year-ago period. Total income fell 39% year-on-year (y-o-y) to Rs 2,114 crore, while income from operations showed a similar decline to Rs 2,107 crore. Provisions increased 44% y-o-y to Rs 14.65 crore. Total financial liabilities fell 7% y-o-y to Rs 91,372.24 crore.
The company has chosen to opt for the lower tax rate in the wake of the corporate tax cut announced in 2019. Accordingly, it has remeasured its deferred tax assets (DTA) and taken a charge of Rs 236 crore to account for the change in applicable rates. DHFL has been downgraded repeatedly and it is currently rated as a defaulter. As a result, the company’s ability to raise funds has substantially been impaired and business has come to a standstill with there being virtually no disbursements, the administrator for DHFL told the exchanges in the notes to accounts.
In the communication to the stock exchanges, the administrator said he took no responsibility for the accuracy of the results and he was placing them on record only to meet compliance requirements. “The administrator, advisors and present KMPs take no responsibility with respect to the accuracy, validity, completeness or authenticity of the information and figures mentioned in the unaudited financial results as they belong to a period prior to the date of their joining the company,” the administrator said in a notification to the exchanges.
“The administrator has signed the unaudited financial results solely for the purpose of compliance and discharging his duties during CIRP of the Company, in accordance with the provisions of the IBC read with ‘the regulations and rules there under and based on the explanations, clarifications, certifications, representations and statements made by the existing staff of the Company, save and except the key managerial personnel (“KMPs”) who have also joined recently after September 30, 2019.”