DHFL is to conclude a stake sale in an upcoming couple of weeks. It will sort out the mismatch off the assets-liability with the restructuring of the loan. The company happened to reports a massive loss, which might be quite pressurizing and stressful for the company to deal with the investor. The potential proposals will now be looked through by the board in these couple of weeks.
DHFL’s Ability To Continue Being A Going Concern
DHFL’s ability to remain well wholly depends on its ability to monetize the assets. It also includes restructuring the liabilities, securing funding from the investors as well as bankers and recommencing its operations. Currently, all the financial statements are prepared based on assuming the company as a going concern. According to the report from DHFL, they are in the process of figuring out the strategies and the right move, and that is nearby completion. They are even identifying the investors who will bring one of the equity investors to DHFL so that the capital base can be strong.
The financial stress of the company are easily measurable by the net loss incurred by the company, which is around INR 2223 crores in the last quarter of the financial year 2018-19. After the consistent downgrades, the management has its eyes on monetizing the assets rightly.