Shares of Reliance Home Finance (RHF) tanked 4.9% on Monday even after the company claimed that the forensic audit report by Grant Thornton gave a clean chit, as no siphoning off or diversion of funds could be established.
The forensic report alleged regulatory anomalies with regard to group exposure and limit for non-housing loan portfolio and deviation from certain policies and procedures. RHF said the National Housing Bank (NHB) had taken note of the same and initiated action.
Shares of RHF ended 4.92% lower on Monday at ₹2.32 apiece. The firm said the forensic report had confirmed the potential group entities’ exposure through several intermediate unlisted entities at ₹7,984 crore, including interest. RHF said that it had voluntarily and publicly disclosed it even before the commencement of forensic audit to its auditors.
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“Prior to the commencement of the forensic audit and also as a part of the forensic audit, the company transparently submitted full and complete details to its auditors, regulators, lenders, and also in the latest annual financial statements which were duly approved by shareholders, to conclusively establish that the aforesaid amount outstanding of ₹7,984 crore has almost entirely been utilised by the potential group entities only for making payments of principal repayment and interest to banks, financial institutions, NBFCs, NCD holders, etc. There is no adverse finding in this regard either in the forensic audit report,” the firm said.
The forensic audit, which mandated by lenders, was part of the debt resolution process, as per RBI norms. RCF has now requested its bankers to proceed on a fast-track basis with the debt resolution plan under change of management and control, for the interests of all stakeholders.