Stock in focus: M&M Finance defers Q4 results after Rs 150 crore North East branch fraud
Mahindra & Mahindra Financial Services said the investigations are at an advanced stage. It estimates that the financial impact of this fraud is unlikely to exceed Rs 150 crore.
- Apr 23, 2024,
- Updated Apr 23, 2024 8:42 AM IST
Mahindra & Mahindra Financial Services Ltd (M&M Finance) shares are in focus on Tuesday morning after the NBFC deferred its March quarter results that were otherwise scheduled for later in the day. In a filing to BSE, M&M Finance said during the end of March quarter, a fraud was detected at one of its branches in the North East. In respect of retail vehicle loans disbursed by Mahindra Finance, 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.
Submission as required under Regulation 30 of Securities Exchange and Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been made separately," it said.
M&M Finance said in view of the 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 31st March 2024, recommendation of dividend, AGM and related matters, which were to be considered at the board meeting scheduled to be held on April 23, are being deferred to a later date, which would be intimated in due course.
"The Audit Committee and the Board Meeting scheduled on 23rd 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. Consequent to above, the trading window which was closed for the purpose of point no. 1 of the caption shall continue to remain closed till 48 hours after the announcement of the audited standalone and consolidated financial results, and the annual earnings conference call is also being deferred," it said.
Mahindra & Mahindra Financial Services shares are up 1.3 per cent in 2024 so far. The stock has risen 9.27 per cent in the past one year.
Mahindra & Mahindra Financial Services Ltd (M&M Finance) shares are in focus on Tuesday morning after the NBFC deferred its March quarter results that were otherwise scheduled for later in the day. In a filing to BSE, M&M Finance said during the end of March quarter, a fraud was detected at one of its branches in the North East. In respect of retail vehicle loans disbursed by Mahindra Finance, 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.
Submission as required under Regulation 30 of Securities Exchange and Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been made separately," it said.
M&M Finance said in view of the 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 31st March 2024, recommendation of dividend, AGM and related matters, which were to be considered at the board meeting scheduled to be held on April 23, are being deferred to a later date, which would be intimated in due course.
"The Audit Committee and the Board Meeting scheduled on 23rd 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. Consequent to above, the trading window which was closed for the purpose of point no. 1 of the caption shall continue to remain closed till 48 hours after the announcement of the audited standalone and consolidated financial results, and the annual earnings conference call is also being deferred," it said.
Mahindra & Mahindra Financial Services shares are up 1.3 per cent in 2024 so far. The stock has risen 9.27 per cent in the past one year.