DHFL surges 20% after independent CA report on Cobrapost allegations

The stock surged 20 per cent to Rs 161 after an independent chartered accountant firm finds that the DHFL has not promoted any of the 26 shell companies, alleged by news portal Cobrapost.

SI Reporter  |  Mumbai 

DHFL
A woman walks past a signboard of DHFL outside its office on the outskirts of Mumbai Photo: reuters

Shares of (DHFL) surged 20 per cent to Rs 161 apiece on the in early morning trade after the company informed the stock exchanges that an independent chartered accountant firm report said that the housing finance company has not promoted any of the 26 shell companies, which were alleged to have siphoned off about Rs 31,000 crore of the company by investigative portal

DHFL’s audit committee in its meeting on January 31 had appointed chartered accountant firm TP Ostwal & Associates as an independent expert to carry out an in-depth review and independently verify data relating to allegations made by The firm has examined the transactions of with 26 entities for loans aggregating to Rs 11,522 crore (Rs 10,960 crore per the company's records).

The audit firm major findings reveal that has not promoted any of the alleged 26 "shell" companies that are borrowers. Further, it does not have any directors in common, including members from the promoter group, with any of these alleged "shell" companies. Further, the company or promoters do not have any shareholding in these entities, nor are these entities shareholders of the company. Accordingly, there are no indications to confirm the allegations that the company has created to divert funds,” the audit firm said in major findings.

Certain lapses and departures from the (SOPs) and policies laid by the company have been identified. These lapses, point to a deficiency in the adherence with the policies in several instances - the risk of which needs to be examined by the Company.

Though the company is required to monitor post disbursal end use of funds by the borrowers, our examination indicates the monitoring in respect of 15 borrowers (loans amounting to Rs 7,485 crore) is significantly inadequate, added report. CLICK HERE TO READ FULL REPORT

At 09:30 am, DHFL was trading 15 per cent higher at Rs 154 on the BSE, as compared to 0.38 per cent rise in the S&P A combined 17.3 million equity shares changed hands on the counter on the and so far.

First Published: Wed, March 06 2019. 09:43 IST