Mahindra & Mahindra Financial Services reports fraud in one of its branches in North East

Defers Q4 results announcement to a later date

Mahindra & Mahindra Financial Services announced that during the end of 4th quarter of the financial year ended 31 March 2024, a fraud was detected at one of Company's branches in the North East. 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 Rs.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.

In view of this development, the 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 scheduled to be held on 23 April 2024, are being deferred to a later date, which shall be intimated in due course. The Audit Committee and the Board Meeting scheduled on 23 April, 2024 will consider all other matters scheduled to be discussed at the respective meetings, including increase in aggregate borrowing limits and fund raise via issue of Non-convertible debentures.

 

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