Total revenue of the corporate rose a tad to Rs 640.18 crore within the July-September quarter of 2020-21 from Rs 635.18 crore in the identical interval of 2019-20, Religare Enterprises (REL) stated in a regulatory submitting.
Interest revenue dropped to Rs 147.09 crore from Rs 170.52 crore. However, revenue from different sources was up by 6.three per cent to Rs 421.87 crore as in opposition to Rs 396.76 crore earlier.
The COVID-19 pandemic has impacted the enterprise operations of subsidiaries engaged in lending — Religare Finvest Ltd (RFL), Religare Housing Development Corporation Finance Ltd (RHDFCL) and medical insurance subsidiary Care Health Insurance Ltd, it stated.
Apart from different opposed results, the pandemic has put constraints on restoration of overdues from clients of RFL and RHDFCL.
The firm, being a Core Investment Company (CIC), has invested its funds primarily in cash market devices and inter company mortgage to its subsidiaries.
Hence, short-term market shocks (resembling these as a result of pandemics like COVID-19) will not be thought-about to have a cloth impression on the carrying worth of those investments of the corporate on standalone foundation, it added.
Besides, Religare stated RFL has an publicity of Rs 2,036.70 crore as at September 30, 2020 in direction of the company mortgage ebook.
“RBI has raised considerations prior to now concerning the credit score worthiness of the debtors, credit score appraisal and mortgage sanctioning mechanism adopted by RFL in respect of this ebook.
“Based on the maturity dates of the loans, recovery steps instituted and the financial reports of the borrowers, RFL had, on a prudent basis, made full provision of Rs 203,670 lakh during the previous years against this portfolio,” it stated.
Accordingly, no additional monetary implications are anticipated on RFL.
Insolvency proceedings have been initiated earlier than the NCLT Delhi and Kolkata in opposition to the debtors forming part of the company mortgage ebook.
The firm, RFL and RCTL (Religare Comtrade Limited) have filed petitions in NCLT for restoration of company loans, it stated additional.
“In the matter of Daiichi Sankyo Company Limited vs. Malvinder Mohan Singh & Others, an interim utility has been filed by the corporate disputing its legal responsibility as a garnishee. The firm has not redeemed 1,500,000 desire shares due for redemption on October 31, 2018 and disputed the legal responsibility stating the transaction to be an unlawful one.
“The company has also filed a petition in NCLT, Delhi under Companies Act, 2013 seeking rectification of Register of Members of the Company w.r.t. 250 lakh preference shares issued by the company to RHC Finance Private Limited in August 2016. The matter is sub-judice,” it added.
The Supreme Court is listening to contempt proceedings in opposition to the Singh brothers (Malvinder and Shivinder) for allegedly violating Delhi High Court orders and promoting their stake in Fortis Healthcare Limited.
The apex courtroom has injuncted NCLT from admitting the Insolvency and Bankruptcy Code (IBC) instances. Now, RFL, REL and RCTL are impleaded as a celebration within the stated proceedings, the corporate stated additional.
Among others, it stated the capital to danger weighted property ratio (CRAR) of RFL as on September 30, 2020 is beneath the prescribed restrict. It was requested by RBI in January 2018 to stick to corrective motion plan given by the central financial institution.
“In this regard, RFL is taking the necessary corrective measures as advised by RBI and will seek removal of cap in the due course,” it stated.
On the matter associated with non-public sector Lakshmi Vilas Bank, it stated RFL had filed a swimsuit for restoration of mounted deposits amounting to Rs 791.45 crore misappropriated by the lender on May 31, 2018 earlier than the Delhi High Court that handed interim orders directing that established order be maintained in respect of RFL’s present account maintained with LVB.
The matter is sub-judice, it added.
REL inventory closed 1.08 per cent up at Rs 51.45 apiece on BSE. KPM KPM ABM ABM