DHFL to file results late

Mumbai: Dewan Housing Finance Limited (DHFL) has informed the stock exchanges that there will be a delay in filing its audited standalone and consolidated results for 2018-19.

The mortgage lender attributed the delay to submissions to be made under the (Indian Accounting Standards) Rules, 2015.

The provisions of the Companies (Indian Accounting Standards) Rules, 2015, came into effect from April 1, 2018, which means that the financial year which ended on March 31 was the first full financial year when these rules were applicable to it, DHFL said.

The company has assured the exchanges that the report for the financial year 2018-19 will be submitted on or before June 30.

On May 21, DHFL announced that it had stopped accepting fresh inflows in fixed deposits besides stopping renewals. It has also put premature withdrawals from existing fixed deposits on hold. The DHFL management said that it took these measures to manage the liquidity crunch and navigate through multiple downgrades by credit evaluators on its debt instruments.

This month, CARE Ratings downgraded the borrowings of DHFL. These borrowings included long-term bank facilities, a fixed deposit programme, perpetual debt, subordinated debt and non-convertible debentures (NCDs). Out of this, NCDs, debt instruments that evoke interest from retail investors accounted for Rs 46,655.12 crore. The NCDs were downgraded from CARE A to CARE BBB- (credit watch with negative implications). According to CARE Ratings, CARE A signifies ‘low’ credit risk while CARE BBB signifies ‘moderate’ credit risk.

Another rating agency, Crisil too recently downgraded rating on the commercial paper of  DHFL from “A3+” to “A4+” on concerns over reduction in liquidity. The rating continues to be on 'Rating Watch with Negative Implications'.