Project Report On

Prepared By:
Mansi Timbadiya [91700424207]
Muskan Manvani [91700424188]
Insiya Bharmal [91700424210]

Under the Guidance of:

Miss. Ankita Patel
(Assistant Professor)
October – 2019
Dewan Housing Finance Corporation Ltd. (DHFL) is a deposit-taking
housing finance company, headquartered in Mumbai with branches in
major cities across India. DHFL was established to enable access to
affordable housing finance to the lower and middle income groups in semi-
urban and rural parts of India. DHFL is the second housing finance
company to be established in the country. The company also leases
commercial and residential premises. DHFL is among the 50 biggest
financial companies in India.

DHFL is rated by ICRA Limited. [Investment Information and Credit Rating

Agency]
 History
DHFL was established and incorporated by Rajesh Kumar Wadhawan on
11 April 1984. The name of the company was changed to Dewan Housing
Development Finance Ltd. and later to Dewan Housing Finance
Corporation.
In 2010, DHFL acquired Deutsche Postbank Home Finance unit for 1079
crores. On 18 December 2013, DHFL acquired 74% stake DLF Pramerica
Life Insurance Company Ltd.

On 29 January 2019, Cobra Post claimed an expose of DHFL for using

shell corporation to siphon up 31,000 crore loan from various banks for
their own personal gains. DHFL has filed a response with BSE saying this
is untrue. DHFL, rebutted these allegations in a Hosted Investors / Analysts
conference & clarified that 31,000 crore loans mentioned in the allegation
comprise its Project Loan Portfolio. Also that these Advances commented
by CobraPost should be 21,000 Crores and not 31,000 Crores as alleged.
On 6 June 2019, The DHFL shares tanked 16% after the company
defaulted on debt repayment. This was a five and a half year low. And has
left investors wondering whether to stay in the game or not.

https://en.wikipedia.org/wiki/Dewan_Housing_Finance_Corporation
Why Dewan Housing Finance share price
fell up to 15% in early trade today…

 Dewan Housing Finance Corporation share price fell 14.96% or 17

points to 94.90 level on BSE. Dewan Housing Finance share price has

been losing for the last two days and has fallen -12.59% in the period.

 Dewan Housing Finance Corporation (DHFL) share price fell in early

trade today after domestic rating agencies Icra and Crisil on
Wednesday downgraded rating on Rs 850 crore worth of commercial
paper of DHFL to 'default' from 'A4' due to the mortgage lender's
deteriorating liquidity condition.

 Dewan Housing Finance Corporation share price fell 14.96% or 17

points to 94.90 level on BSE. Dewan Housing Finance share price
has been losing for the last two days and has fallen 12.59% in the
period.

 The stock opened at a loss of 10% to 100.45 level in trade today.

Dewan Housing Finance share price has lost 83.68% during the last
one year and fallen 60.36% since the beginning of this year.

https://www.businesstoday.in/markets/company-stock/dewan-
housing-finance-share-price-falls-icra-crisil/story/354114.html
Financial Reports
DHFL has been the subject of multiple downgrades in recent months. The
most recent downgrade by CARE Ratings affected borrowings including
long-term bank facilities, fixed deposit programme, perpetual debt,
subordinated debt and Non-Convertible Debentures (NCDs) worth 1.13
trillion. Out of this, the Fixed Deposit Programme worth 20,000 crore was
downgraded from CARE A to CARE BBB- (Credit Watch with negative
implications). According to CARE Ratings, CARE A signifies ‘low’ credit
risk, while CARE BBB signifies ‘moderate’ credit risk.

https://www.livemint.com/companies/news/dhfl-puts-fresh-deposits-
and-renewals-on-hold-halts-pre-mature-withdrawals-
1558460507432.html
INDIA’S BIGGEST FINANCIAL SCAM

 The Primary Promoters of DHFL- Kapil Wadhwan, Aruna Wadhwan

and Dheeraj Wadhwan have been found to have siphoned off more
than Rs.31,000 crore of public money.

 The scam has primarily been pulled off through grants of loans and
advances to shell companies and by using other means. Money has
also been routed through these dubious companies and parked
outside India, to acquire assets.

 They ensured that loans were granted to shell/pass-through entities

and the money ultimately ended up in the companies owned or
controlled by the Wadhawans.

 The money has been used to buy shares/equity and other private
assets in India and abroad, including in countries like UK, Dubai, Sri
Lanka and Mauritius.

https://www.cobrapost.com/blog/press-realise-dhfl-l/1374
Introducing Dewan Housing
Finance (NSE:DHFL), The Stock
That Tanked 85%
Simply Wall St September 26, 2019

Even the best investor on earth makes unsuccessful investments. But it

should be a priority to avoid stomach churning catastrophes, wherever
possible. So spare a thought for the long term shareholders of Dewan
Housing Finance Corporation Limited (NSE:DHFL); the share price is
down a whopping 85% in the last twelve months. That’d be a striking
reminder about the importance of diversification. To make matters worse,
the returns over three years have also been really disappointing (the share
price is 84% lower than three years ago). Shareholders have had an even
rougher run lately, with the share price down 42% in the last 90 days.
We really feel for shareholders in this scenario. It’s a good reminder of the
importance of diversification, and it’s worth keeping in mind there’s more to
life than money, anyway.
While the efficient markets hypothesis continues to be taught by some, it
has been proven that markets are over-reactive dynamic systems, and
investors are not always rational. One way to examine how market
sentiment has changed over time is to look at the interaction between a
company’s share price and its earnings per share (EPS).
Dewan Housing Finance fell to a loss making position during the year.
While this may prove temporary, we’d consider it a negative, so it doesn’t
surprise us that the stock price is down. Of course, if the company can turn
the situation around, investors will likely profit.
You can see below how EPS has changed over time.
Financial Report 2004 - 2018

Ratio Analysis
THANKYOU