M&M Financial Services postpones Q4 results after Rs 150 crore fraud at a branch

23 Apr 2024 , 02:44 PM

Mahindra and Mahindra Financial Services Ltd., a non-banking finance company (NBFC) reported that during the January–March quarter, it discovered a ₹150–Crore fraud at one of its locations.

The company notified the stock exchanges that the fraud pertaining to retail car loans that it had disbursed entailed the falsification of KYC documents, which resulted in the misappropriation of company funds. The company also added that the investigations into the matter are currently underway.

According to M&M Finance's estimation, the fraud's financial impact is not expected to surpass ₹150 Crore.

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

The firm announced that the previously planned board meeting to discuss the company's financial results for the fourth quarter and fiscal year that ended on March 31, 2024, the dividend recommendation, the annual general meeting, and associated topics has been postponed to a later date in light of this development.

On April 23, the Q4 profits were scheduled to be revealed. According to the firm, all other topics planned for discussion at the various meetings will be taken into consideration by the Audit Committee and the Board Meeting on April 23, 2024.

As to the company's statement, this will entail raising funds through the issuance of non-convertible debentures and augmenting the overall borrowing capacity. The company also announced that the annual results conference call will not be held this year.

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