Today was scheduled for announcing Q4 earnings. The fraud, detected in retail vehicle loans disbursed by the company, resulted in the embezzlement of firm funds.
Mahindra & Mahindra Financial Services has postponed its board meeting, initially planned for today, following the discovery of a ₹150 crore fraud at one of its branches in the North East region.
“In the closing stages of the fourth quarter of the financial year ending on March 31, 2024, a fraud amounting to ₹150 crore was uncovered at one of the company’s branches in the North East. The fraud, related to retail vehicle loans disbursed by the company, involved falsification of KYC documents resulting in misappropriation of company funds. Investigations into the matter are in an advanced phase. The company estimates that the financial impact of the fraud is unlikely to surpass Rs.150 Crores. Investigations are ongoing, and necessary corrective measures have been identified and are in various stages of implementation, including the apprehension of several individuals involved,” stated the NBFC in an exchange filing.
In response to the development, the company announced that the Board meeting, originally scheduled to discuss the financial results for the fourth quarter and financial year ending March 31, 2024, as well as matters such as dividend recommendations, AGM, and related issues, would be postponed to a future date.
Today was the scheduled announcement date for Q4 earnings.
The company stated that the Audit Committee and board meetings will address all other agenda items as planned. This encompasses discussions on raising aggregate borrowing limits and issuing Non-convertible debentures to raise funds.
The company also announced the postponement of the annual earnings conference call.
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