Mahindra Finance hold up Board Meeting due to fraud detected

by Psu Connect
Date: 23-04-24

Investigations are underway, and necessary corrective actions have been identified and are at various stages of implementation, including the arrest of a few persons involved.

Mahindra Finance hold up Board Meeting due to fraud detected

New Delhi: The Mumbai headquartered non-banking financial company, Mahindra & Mahindra Financial Services Limited announced that the company has detected fraud in its North East Branch due to which the company has delayed its fourth quarter result for the financial year ended 31st March 2024.

Mahindra Finance in its BSE filing mentioned that, "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. The investigations in the matter are at an advanced stage. 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 the arrest of a few persons involved. Submission as required under Regulation 30 of Securities Exchange and Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been made separately."

Seeing this whole matter, the agenda matters pertaining to approval of the audited standalone and consolidated financial results of the Company for the fourth quarter and financial year ended 31st March 2024, recommendation of dividend, AGM and related matters, which were to be considered at the Board meeting scheduled to be held on 23rd April 2024, are being deferred to a later date, which shall be intimated in due course.

The Audit Committee and the Board Meeting scheduled on 23rd April, 2024 will consider all other matters scheduled to be discussed at the respective meetings, including increase in aggregate borrowing limits and fund raise via issue of Non-convertible debentures.