NEW DELHI: After running into trouble in relation to the Infrastructure Leasing & Financial Services (IL&FS) case, leading auditing firm Deloitte Haskins & Sells has quit as the auditor of cash-strapped Dewan Housing Finance Corporation (DHFL).
“The company has quit as the auditor of DHFL. A communication has been sent in this regard to the concerned authorities (ministry of corporate affairs),” a senior official with Deloitte confirmed, though citing no immediate reason for the decision. Deloitte was a joint auditor for DHFL along with Mumbai-based Chaturvedi & Shah. The latter continues to serve the company.
According to sources, the joint auditors had, during assessment of DHFL’s financial results for FY 2018-19, spotted irregularities in granting of certain loans. While preparing the statement of accounts, they had marked their reservations about the management.
Deloitte’s move to resign from DHFL comes at a time when it is already under scanner over its role as auditor in IL&FS. While the communication regarding Deloitte’s decision has been sent to the ministry of corporate affairs, DHFL sources denied to have received any such communication from Deloitte. Cash-strapped DHFL has a debt pile of Rs 90,000 crore and has defaulted on its various repayment obligations recently.
DHFL shares on Monday tanked 10 per cent following reports of the Deloitte decision. DHFL scrip tumbled 10.08 per cent to close at Rs 41.95 on BSE. During the day, it plunged 12.43 per cent to Rs 40.85, its 52-week low. On NSE, shares dropped 10.07 per cent to close at Rs 41.95 apiece.