'Frauds to the tune of Rs 2 cr in SKS Microfin'

SKS said cash embezzlement is 0.04% of disbursement during the year

SKS Microfinance witnessed financial frauds to the tune of Rs 2.1 crore this year and is taking a slew of measures to prevent its employees from indulging in such offences.

Investigations are in progress and services of employees involved in the fraud have been terminated and the company is in the process of taking legal action, according to the company's latest annual report.

"We (auditors) have been informed that during the year there were instances of cash embezzlements in the company aggregating Rs 1.27 crore; loans given to non-existent borrowers on the basis of fictitious documentation created by the employees of the company aggregating Rs 83.3 lakh and misappropriation of cash by an external party, amounting to Rs 4.5 lakh ," company auditors S R Batliboi and Co said.