Mahindra Finance on April 23 stated it had in March detected about ₹150 crore fraud in its loan portfolio at certainly one of its branches and has postponed finalisation of results for the fourth quarter and in addition for the financial yr till May 30.
Mahindra & Mahindra Financial Services board was scheduled to satisfy on Tuesday to approve the financial results for the March quarter and 2023-24 fiscal yr.
In a regulatory submitting, the corporate stated a the board assembly to think about financial statements, results and dividend for the interval ended March 2024 is re-scheduled and shall be held on May 30, 2024.
The board of Mahindra & Mahindra Financial Services, which met earlier in the day, accredited a hike in borrowing restrict to ₹1.30 lakh crore, from ₹1.10 lakh crore presently, and in addition determined to nominate M M Nissim & Co LLP and M P Chitale & Co because the Joint Statutory auditors of the corporate for a interval of three years.
They will substitute Deloitte Haskins & Sells and Mukund M. Chitale & Co upon completion of their 3-year time period on the ensuing thirty fourth annual common assembly (AGM) to be held later in the yr.
Mahindra Finance stated through the finish of the fourth quarter of the financial yr ended March 31, 2024, a fraud was detected at one of many firm’s branches in the northeast.
“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 ₹150 crore,” Mahindra Finance stated.
Investigations are underway, and essential corrective actions have been recognized and are at numerous levels of implementation, together with the arrest of some individuals concerned, it added.
The firm’s board additionally accredited appointment of Vijay Kumar (*30*) as an Additional Director (impartial and non-executive) on the board for a time period of 5 consecutive years with impact from May 15, 2024 till May 14, 2029.
The board additionally accredited appointment of KSR & Co Company Secretaries LLP because the Secretarial Auditor of the corporate for FY25 and FY26 to switch Makarand M. Joshi & Co. Company Secretaries, the present Secretarial Auditor of the Company, Mahindra Finance stated in a regulatory submitting.
Shares of Mahindra Finance closed 5.47% down at ₹263.60 apiece on the BSE.
