That’s an extreme statement. RBI bonds would have been safe and offer same interest as FD.
update new CEO appointed Ex Chief General Manager (CGM) of State Bank of India (SBI)
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No decision is right or wrong but an investment can be Good or Bad … This may be my views . The fact remain fact but the perception differences are always present .For every sale there are some sellers and some buyers . I fail to recognise the created Risk . But the Risk is not inherited from working of the company but due to downgrades by the credit agencies . At the same time time one can not overrule the malpractice in this sector as a whole . But certainly gives a lot is lessons and to improve on the methods and practices .Crowds are king in short terms but long term practices and fundamental pave the road either to wealth erosion or creation
Regards
Dis. Invested this is not any recommendations to buy sell or hold
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sharing some notes
Statutory assets of DHFL
DHFL capital adequacy ratio, calculated in accordance with Indian GAAP, was 15.29% as on March 31, 2018
in pursuant to the NHB guidelines, HFCs are required to maintain a statutory liquidity ratio in respect of public deposits raised-> As at March 31, 2018, the SLR requirement was 12.5% which is divided into 6.0% of government bonds and 6.5% of fixed deposits. As at March 31, 2018, the Company has invested 63,095 lakh in approved securities comprising government securities, government guaranteed bonds etc. and 65,014 lakh in bank fixed deposits and NHB bonds, being 7.33% and 7.55%, respectively
but as per the observation by NHB during auditing of year ending mar 2018 are as follows
" The Company has received a letter dated July 3, 2019, from the National Housing Bank containing observations emanating from the inspection carried out by NHB for the year ended March 31, 2018 as per the provisions of the National Housing Bank Act, 1987. There are observations in the letter inter-alia being impact on the capital adequacy ratio of the company at at March 31, 2018 reduced to 10.24%. NHB has directed the Company to provide a specific response to all the observations within a period of 21 days. The management does not concur with the observation of the NHB and will provide an appropriate response within the stipulated time. As mentioned in the note 14 above, classification of project loans, SRA loans and wholesale mortgage loans as Fair Value Through Profit or loss (FVTPl) as at March 31, 2019 has resulted in a charge of fair value loss aggregating Rs325,345 lakh (gross of reversal of provision) to the Statement of Profit and loss. In view of these results being prepared using Indian Accounting Standards (Ind AS) while the NHB observations relate to numbers compiled on the basis of regulatory guidelines, the Management believes that the aforesaid observations may not have any implications on the same"
Sale of 23,01,090 (9.15%) equity shares held in Aadhar Housing Finance Limited(AHFL) to private equity funds managed by Blackstone on 2nd February 2019 for a total consideration of Rs 20,895 lakh. After obtaining applicable regulatory and other approval, Rs 16,363 lakh has been received by the Company on 10th June 2019 and balance of Rs4,532 lakh is expected over the period of next 6 months
fourth under Clause 29C of the NHB Act, our Company is required to create a reserve fund and transfer to such fund an amount of no less than 20% of its net profits every year before any dividend is declared.
negatives : The Company’s ability to raise funds has been substantially impaired and the bU,sinesshas been brought to a standstill with there being minimal/virtually no disbursements.
multiple accounting entries which were initially recorded in certain customer accounts for receipts despite fhe cheques or negotiable instrument not been deposited in the bank(s) however these enteries are subsequently reversed in fY ending 2019
Source:
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Finally it has become NPA… NCD may have bare minimum liquidation value of 20-30%…it seems, that too if we’re lucky
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Should not come as a surprise to many folks who are familiar with the political landscape in Mumbai. I have always believed that this is a well planned and controlled deflation of this NBFC by the highest authorities of this country and won’t be surprised if there are few more which would go under silently. My only grudge has been that they did not shield the system and hence the economy.
I think it’s difficult for DHFL to survive with their D-Company links.
It’s a goner.
No investor would want to associate with potential links to underworld which are out in the open and under scrutiny.
Banks can now write off their loans and invest their time in some other productive cause.
This sounds like cooked up conspiracy theories
. Cobrapost did a big amount of damage and it had accusations against the current establishment, bhakts etc.
You might be too late to say this given the news surrounding their audit reports. Anybody who cared to dig deeper beyond just low P/B ratio would have figured out that something is not right. Now it seems that all those doubters were completely right. I did spend some time in analyzing this some 3 yrs back and thankfully gave it a pass. Cobrapost might just get it right on this one.
Another bad news for some of these crooks is that NDA will get majority in Maha elections tomorrow and that’s when actual enforcement actions will gain traction. That is what some people think.
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Anyone invested in secured NCDs in DHFL can help me understand if anything needs to be done from our end to claim the amount during the NCLT process?