Mahindra & Mahindra Financial Services (otherwise known as Mahindra Finance) revealed on Tuesday a fraud amounting to Rs 150 crore. This involves the falsification of crucial Know Your Customer (KYC) documents within its retail car loan branch located in North East.
The dubious activity was brought to light during the last quarter of the 2024 financial year. A thorough investigation has now been initiated, leading Mahindra to postpone the outcome of their March 2024 quarter results until May 30th.
Mahindra Finance notified exchanges of the fraudulent activity stating it happened within one of their northeastern branches. The fraud relates to the forgery of KYC forms causing the embezzlement of company assets.
The company estimates this fraudulent activity to have a fiscal impact not exceeding Rs 150 crore. Investigations are in progress with identified corrective measures at different stages of appliement, including the detention of a few individuals involved in the fraud.
Consequently, the company will delay the agenda to approve the audited standalone and unified financial results which should have occurred in the Board meeting. This also includes the recommendation of dividend, Annual General Meeting (AGM) and other related subjects. The rescheduled date of the board meeting will be communicated in the future.
The company has decided to conduct a board meeting on May 30, 2024 to review the financial results for March 2024 period in a different announcement.
On Tuesday, the company’s shares took a hit, dropping by 5.47% to Rs 263.6 each.
This news was first published on 23-04-2024, at 22:05 IST.
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Frequently Asked Questions
How much did Mahindra Finance estimate the fraud to cost them?
Mahindra finance estimates that the fraudulent activity will have a fiscal impact not exceeding Rs 150 crore.
When did Mahindra Finance anticipate the fraud occurred?
The company revealed the fraud was detected during the last quarter of the financial year that ended in March 31st, 2024.
What consequences did the fraud have on Mahindra Finance’s operations?
Following the detection of the fraud, the company had to postpone the announcement of their quarter results. This also led to the delay of their board meeting and consideration of financial results for the last period.
