Mahindra finance to delay Q4 results due to detected retail vehicle loan financial fraud
Apr 23, 2024
New Delhi [India], April 23 : A financial fraud has been detected at the North East branch of Mahindra & Mahindra Financial Services during the end of the fourth quarter of the financial year ended March 31, 2024, the company informed the exchange in its filing on Monday.
"We hereby inform you that during the end of 4th quarter of the financial year ended 31st March 2024, a fraud was detected at one of Company's branches in the North East. In respect of retail vehicle loans disbursed by the Company the fraud involved forgery of KYC documents leading to embezzlement of Company funds" said a release by the company.
The fraud is related to retail vehicle loans disbursed by the company, involved forgery of KYC documents resulting in the misappropriation of company funds.
The company also informed that due to the fraud, it has decided to defer the announcement of financial results for the fourth quarter and financial year ended March 31, 2024. This includes the recommendation of dividend, Annual General meeting and related matters that were scheduled for consideration at the Board meeting on April 23, 2024.
But the Audit Committee and Board Meeting will still address other scheduled matters, such as the increase in aggregate borrowing limits and fund raise via issue of Non-convertible debentures.
The company has also informed that investigations into the fraud are at an advanced stage, with an estimated financial impact of the fraud not expected to exceed Rs. 150 Crores. Necessary corrective actions have been identified and are in the process of implementation, including the arrest of individuals involved.
"The Company estimates that the financial impact of this fraud is unlikely to exceed Rs.150 Crores. Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including arrest of few persons involved" the release further added.
The shares of Mahindra & Mahindra Finance closed with a decline of 1.20 per cent at Rs 279 on Monday trading session.
