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DHFL 'takes cognizance of KPMG report'; shares locked in 5% lower price band

The stock remained in the red even as it clarified in a BSE filing that it has taken note of the key observations made in a draft report by KPMG.

October 25, 2019 / 12:53 PM IST
 
 
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Shares of Dewan Housing Finance Corporation (DHFL) remained locked in 5 percent lower price band at Rs 17.55 on BSE on October 25 and looked on course to extend their losing run into the fourth straight session.

The stock remained in the red even as it clarified in a BSE filing that it had taken cognizance of the key observations from the draft report prepared by KPMG.

"The company reiterates that it has taken cognizance of the key observations from the draft report prepared by KPMG, appointed by Union Bank of India, the lead banker of the consortium, on behalf of all the members of the consortium," DHFL said in a regulatory filing.

The comment from DHFL came in response to a clarification sought by BSE and NSE regarding news reports that "DHFL lent Rs 14,000 crore to 25 group firms, reveals forensic audit and KPMG forensic audit finds fund diversion from DHFL to promoter-led entities".

DHFL said it was "not aware of the source of the above articles or of any impact that such an article may have on the trading of securities of the company".

The Economic Times reported that KPMG has found an alleged misuse of funds by DHFL beyond specific applications previously approved by its financial lenders.

The audit exercise was said to have found that DHFL disbursed loans and advances to inter-connected entities that appeared to be linked to its promoters, the report added.

Union Bank of India appointed KPMG to carry out a special review of DHFL for the period between April 2015 and March 2019.

Moneycontrol News
first published: Oct 25, 2019 12:53 pm

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