Mahindra Finance on April 23 said it had in March detected about ₹150 crore fraud in its loan portfolio at one of its branches and has postponed finalisation of results for the fourth quarter and also for the financial year till May 30.
Mahindra & Mahindra Financial Services board was scheduled to meet on Tuesday to approve the financial results for the March quarter and 2023-24 fiscal year.
In a regulatory filing, the company said a the board meeting to consider financial statements, results and dividend for the period ended March 2024 is re-scheduled and will be held on May 30, 2024.
The board of Mahindra & Mahindra Financial Services, which met earlier in the day, approved a hike in borrowing limit to ₹1.30 lakh crore, from ₹1.10 lakh crore currently, and also decided to appoint M M Nissim & Co LLP and M P Chitale & Co as the Joint Statutory auditors of the company for a period of three years.
They will replace Deloitte Haskins & Sells and Mukund M. Chitale & Co upon completion of their 3-year term at the ensuing 34th annual general meeting (AGM) to be held later in the year.
Mahindra Finance said during the end of the fourth quarter of the financial year ended March 31, 2024, a fraud was detected at one of the company'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 said.
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, it added.
The company's board also approved appointment of Vijay Kumar Sharma as an Additional Director (independent and non-executive) on the board for a term of 5 consecutive years with effect from May 15, 2024 till May 14, 2029.
The board also approved appointment of KSR & Co Company Secretaries LLP as the Secretarial Auditor of the company for FY25 and FY26 to replace Makarand M. Joshi & Co. Company Secretaries, the existing Secretarial Auditor of the Company, Mahindra Finance said in a regulatory filing.
Shares of Mahindra Finance closed 5.47% down at ₹263.60 apiece on the BSE.
