I didn’t understand the Loss due to fair value changes of 2550cr mentioned in the Q4 results
Note 9 & 11 talks about this.SRA loans, Projects & Wholesale loans will be monetized & fair value loss has been added to P&L statement.
Can some one throw light on this ?
Does it say that DHFL is going to sell it’s wholesale loans at a lesser than fair value ?
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It is curtains down here and end of the road as claimed by the company itself. All talk of value play, P/B calculation etc is down the drain. It probably means that they have to monetise assets that nobody wants and would have to take big haircut to dispose the same. What happens to its lenders is next logical step for the market to think. The key question one needs to ask is why nobody from FII and other investor community is coming forward to save it if it was such a good franchisee in a sunrise sector just 12 months back. Do they fear more skeletons?
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I had a very small exposure to DHFL. Part of it I sold with a huge loss; the exposure being small though helped. My learning from the DHFL fiasco was that going only on numbers released by an organization is useless in India. All numbers can be manipulated and hence it is more important that the organization is trustworthy. My investments now have a bias on larger more well known names which would be giving me a more consistent return instead of taking a risk with smaller doubtful players.
I am a beginner and hence I do not want to burn my hands with substantially more money. Just my ywo cents.
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In my opinion it is a gone case now, if secured creditors have to take a hair cut, how on earth can a equity investor earn. The secured creditor walks its last mile over the corpse of an equity holder. In my opinion retail investors should exit at whatever price they can recover. Same advise for Jet Airways.
I have heard from sources(not verified) that next in the line may be India Bulls.
Disclosure : Not invested just tracking for knowledge
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What i see may be absurd , " due to the additional provisioning of Rs 3,280 crore (including net loss on fair value), the company reported a net loss of Rs 2,223 crore for the quarter and net loss of Rs 1,036 crore for the whole year"
source; Housing lender DHFL fears it may not continue as a going concern; posts loss of Rs 2,223 cr in Q4-Business News , Firstpost
The new chief Risk
Officer has several Positives … may be good for company … They are appointing him for three years … BUT the question is is this survive for next three years ??? i am not sure is this the MAN they Put on charge ???
linked in feedback
Experience
Disc : invested so my views may be biased
Appointment of new Chief Risk Officer now is a case of closing the stable door after the horse has bolted am afraid. 
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Thanks @phreakv6 THE HORSE IS UNDER TREATMENT That’s WHy the DOOS are CLOSED 
Mean while gong through the letter of filling i found this
BUT THE VALUE OF THE MANGEMNT WORDS… IS IT WORTH ???
In India nothing go according to rules. The rulling on Essar case valued secured and unsecured creditors at par. https://www.livemint.com/companies/news/investors-on-the-back-foot-post-essar-verdict-1563126372245.html. This is very bad and if continue would mean all the bond/debt should be valued at same level regardless of priority order.
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The company is already not a going concern and that is the reason even after so much delay they have not lodged the audited financial statement as the auditors are not ready to sign it as a going concern. Obviously the management cannot lodge the financial as if it’s not a going concern as all assets should be fully impaired as held for sale. The current equity value of this company I am afraid will be probably close to zero with even the creditors taking a big hair cut. The biggest shock is that the promoters are getting away with day light robbery even after cobra post had publicly disclosed their misdoings. Such disregard for law kills trust of minority shareholders in equity investing as nobody is protecting them in India.
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As an exercise that may illustrate the above, investors may dig up a little to find out the Directors on the Board of DHFL and the one who resigned in Sept 2017, and his current position in one of the most important Govt institution.
i couldn’t find that DHFL said that ,It may not survive as a going concern IF SOME ONE PLEASE share the link ,
DHFL on Monday said: “Some of the media have used select portions of our statement and created panic/ confusion especially regarding the statement on the going concern. We urge that the entire statement be read in entirety, so that the news is factual and not sensationalised,” DHFL told exchanges on Monday.
i may wrong but most of the times the media reporting goes like this
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Here. Note 10
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i may be wrong but if one read without any bias It shows the effort that company is making … Please correct me if i am wrong Thanks @shonk999 for providing the link
It Said that These developments MAY RAISE a Significant DOUBT .Company does not accept that they are hard of making the company as they are not able to operate a as a going concern
Regards
company filing addressing to yesterday’s Panic selling
Its too late to act now, the writing is clear on the wall. The company has rightly acknowledged that it is no longer a going concern. Their funds are blocked in real estate projects where there are no takers.
As per my understanding
They have funded the unsold inventory of developers. The banks cannot finance such assets due to RBI regulations. Mutual funds are also not in a position to fund.
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Surprised to see that folks are still staying invested in this script despite the business cycle completely broken since past 3 quarters. It is still worth Rs 50 as of today. One can stay invested if he is convinced of the company revival but remaining invested just hoping that problems will go away might not be a prudent strategy. Biggest drawback I see with staying in this kind of investments is huge amount of energy that is consumed to track the news and justify the investment (to self). Better to put the limited energy and money on other opportunities.
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Two items from the BusinessLine article are damning which pretty much means that one should not touch this stock with a 10 metre long pole
- they received cheque’s for Rs16,000cr and realised these amounts in their books but never cashed in the cheques. Simply means they are unable to cash as the cheques got bounced.
- they have no documentation for Rs20,000cr worth of loans which proves cobrapost claims of fraud.
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