The troubled housing financier is undergoing a debt resolution.
Its income during January-March 2021 fell 42.4 per cent to Rs 162.08 crore as against Rs 281.34 crore in the year-ago period, Reliance Home Finance said in a regulatory filing.
For the full year 2020-21, the company’s net loss widened multifold at Rs 1,519.90 crore as against Rs 375.32 crore in 2019-20.
Total income during the year also plunged to Rs 840.43 crore as against Rs 1602.91 crore.
The non-banking financial company, whose proportion of non-housing loan is more than the proportion of housing loan, said the debt resolution process is in final stages.
“The company post-finalisation and implementation of the final debt resolution plan will increase the housing loan portfolio and is confident of achieving the same in due course,” Reliance Home Finance said.
Its cash on hand nears around Rs 1,820 crore in the form on investment in liquid mutual fund and fixed deposits.
“However, the delay in debt servicing is due to prohibition on the company to dispose of, alienate, encumber either directly or indirectly or otherwise, part with the possession of any assets, pursuant to order dated November 20, 2019, passed by Delhi High Court,” it said.
It said the company is engaged with its lenders for arriving at the debt resolution plan.
Certain lender of the company have entered into an inter-creditor agreement (ICA) in accordance with the June 7, 2019, circular issued by the Reserve Bank of India on the Prudential Framework for Resolution of Stressed Assets.
“Majority of our lenders have already executed the ICA dated July 6, 2019, with Bank of Baroda acting as the lead lender.
“The lead bank and the lenders forming part of ICA have appointed resolution advisors, cashflow monitoring agency, forensic auditor, valuers and legal counsel,” it added.
Bank of Baroda as the lead lender has already invited expression of interest for bids from interested bidders in July 2020.
Reliance Home Finance said the resolution process is in final stages with the lender having received the final plans from interested investors.
It exuded confidence that the lenders will finalise the resolution plan which will be implemented. The company added that “in view of the resolution process being in final stages, the accounts of the company have been prepared on going concern basis”.
The company’s various bonds issuances have been rated into ‘D’ category by raters such as
and Brickwork Ratings.
Further, the company said its lead bank has directed it to refrain from any debt servicing and, thus, it has not paid towards the principal/interest dues against certain non-convertible debentures on which the money was due.
The net worth of the company as of March 31, 2021, stood at Rs 47.87 crore. Earnings per share stood at Rs 31.33.
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