While the Piramal Group’s resolution plan has been approved by its committee of creditors, the RBI, and the CCI, the proposal is still seeking NCLT clearance.
Dewan Housing Finance Limited (DHFL) reported a standalone net profit of Rs 97 crore in the quarter ending March FY21, compared to a loss of Rs 7,634.89 crore in the previous quarter.
However, revenue from home financing operations fell 14 percent in Q4FY21 to Rs 2,034.53 crore, compared to Rs 2,387.58 crore in Q4FY20.
DHFL, which is insolvent, declared a loss of Rs 15,051 crore for the full year, while total revenue was Rs 8,802.79 crore. The company’s net worth was assessed to be negative at Rs 20,637.05 crore.
In 2019, DHFL became the first financial services firm to be referred to insolvency. The Piramal Group’s resolution plan has been approved by the DHFL committee of creditors (CoC), the Reserve Bank of India (RBI), and the Competition Commission of India (CCI), but it still needs to be approved by the National Company Law Tribunal (NCLT).
The auditor’s report stated, “The firm’s net worth has been completely eroded, rendering the company unable to comply with the RBI’s regulatory requirements in respect of the Net Owned Fund (NOF).”
The company has accrued losses totaling Rs 15,051 crore (including other comprehensive income) in FY21, and its net value has been totally eroded, according to the firm.
These standalone financial figures, on the other hand, are based on a continuing concern basis as part of the ongoing Corporate Insolvency Resolution Process (CIRP), the conclusion of which cannot be predicted right now.
As a result, the company’s ability to continue as a “going concern” is contingent on the outcome of the continuing CIRP, according to the auditor’s report.