Mahindra & Mahindra Financial Services Limited (MMFSL) has recently announced the detection of a fraud in its retail vehicle loans portfolio during the fourth quarter (Q4) of FY24. The fraud amount is estimated to be ₹150 crore and involves the forgery of KYC (know your customer) documents at one of MMFSL’s branches in the North East.
Investigation and Financial Impact
MMFSL has stated that investigations into the matter are currently at an advanced stage. The company believes that the financial impact of this fraud will not exceed ₹150 crore. Necessary corrective actions have been identified and are being implemented, including the arrest of individuals involved in the fraudulent activities.
Impact on Board Meeting and Agenda Matters
As a result of this development, certain agenda matters that were scheduled to be discussed at the board meeting on April 23, 2024, will be deferred to a later date. These matters include the approval of the audited standalone and consolidated financial results for Q4 and the financial year ended March 31, 2024, recommendation of dividends, AGM-related matters, and others. The company will inform stakeholders about the rescheduled date in due course.
Other Matters to be Considered
Despite the fraud incident, the Audit Committee and the board meeting scheduled for April 23, 2024, will proceed with discussing all other matters on the agenda. These include the consideration of an increase in aggregate borrowing limits and the fund raise through the issuance of non-convertible debentures.
Mahindra & Mahindra Financial Services Limited (MMFSL) is an Indian rural non-banking financial company headquartered in Mumbai. It is amongst the top tractor financers in India, with 1000+ offices across the country. Mahindra Finance share price as on today is given below.
