M&M Finance postpones results after fraud
In a stock exchange notice post midnight, the company said the fraud involved forgery of KYC (know your customer) documents leading to embezzlement of company funds and pegged the total financial impact of the fraud at Rs 150 crore.
Mumbai: Mahindra & Mahindra Financial Services (M&M Fin), the NBFC arm of the auto group has postponed its fourth quarter results indefinitely after a fraud was detected at one of company’s branches in the North East. The results were supposed to be announced on Tuesday.In a stock exchange notice post midnight, the company said the fraud involved forgery of KYC (know your customer) documents leading to embezzlement of company funds and pegged the total financial impact of the fraud at Rs 150 crore.
"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... necessary corrective actions have been identified and are at various stages of implementation, including arrest of few persons involved," the company said.
The company's shares fell close to 8% in early trade to Rs 257 a piece but had recovered and was trading at Rs 270 apiece down 3% from Monday's close of Rs 279 a piece on the BSE.
The company said that the discovery of the fraud, agenda matters pertaining to approval of the audited standalone and consolidated financial results of the company for the fourth quarter and financial year ended 31 March 2024, recommendation of dividend, AGM and related matters, which were to be considered at the board meeting on Tuesday are being deferred to a later date, which shall be intimated in due course.
However, the company's audit committee and the board meeting to consider other matters like increase in aggregate borrowing limits and fund raise via issue of non-convertible debentures will go ahead as per schedule.
The company did not specify which branch the fraud took place.
Source: Stocks-Markets-Economic Times
