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IndoStar Capital freezes at 10% lower circuit on accounting discrepancies

The company may have to make an additional expected credit loss provisions between Rs 557 crore - Rs 677 crore due to the "certain observations and control deficiencies" made by an external auditor.

Buzzing stocks | IndoStar Capital Finance | Market trends

SI Reporter  |  Mumbai 

Markets, market fall

Shares of was locked at the 10 per cent lower circuit at Rs 184.30 on the BSE in Monday’s trade after the company said it found certain discrepancies in its commercial vehicle loan portfolio.

Till 10:49 am, a combined 29,000 equity shares changed hands and there were pending sell orders for 500,000 shares on the NSE and BSE.

The stock of the non-banking finance company (NBFC) traded at its 52-week low level. It listed on May 21, 2018. The stock tanked 68 per cent from its issue price of Rs 572 per share. In the past one year, the stock ha shed 39 per cent as against a 10 per cent gain in the S&P BSE Sensex.

With Brookfield & Everstone as co-promoters, IndoStar is a professionally managed and institutionally owned organization which is engaged in providing used and new commercial vehicle financing, loans to SME borrowers and Affordable Home Finance through its wholly owned subsidiary, IndoStar Home Finance Private Limited.

IndoStar on Friday in an exchange notice said that it may have to make additional expected credit loss (ECL) provisions between Rs 557 crore - Rs 677 crore due to the “certain observations and control deficiencies” made by an external auditor. The loan portfolio review is ongoing and the assessment of the potential additional provisioning and relevant issues may undergo revisions, the company said.

“…. Certain observations and control deficiencies identified, during the course of the interim statutory audit of the annual financial statements of the company, primarily relating to the commercial vehicles loan portfolio of the Company ("CV loan Portfolio"),” IndoStar said.

The company further said the Loan Portfolio Review is expected to be completed by the time of finalisation of the audited financial statements of the company for the year ended 31 March 2022 and the impact of the Loan Portfolio Review shall be disclosed in the audited financial statements of the company. CLICK HERE FOR FULL STATEMENT

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First Published: Mon, May 09 2022. 11:01 IST