Mahindra Finance to announce Q4 results on May 4th, delayed because of financial fraud

Mahindra Finance announced to declare the financial results for the fourth quarter of FY2024 on 4TH May, the company informed the exchange in its filing.

Alongside the financial results, the company's meeting scheduled for the same day will also consider the recommendation of dividends for FY 2024, subject to approval from shareholders.

The company, in its communication to the National Stock Exchange, stated, "Consider and approve the audited standalone and consolidated financial results of the Company for the fourth quarter and financial year ended 31st March 2024.

Consider recommendation of dividend, if any, on the equity shares of the Company, for the financial year ended 31st March 2024 for approval of the shareholders at the ensuing Annual General Meeting.

"Earlier the company was scheduled to announce the quarter results on 23rd April but it was deferred after the company detected a financial fraud of Rs 150 crore at the North East branch of Mahindra & Mahindra Financial Services.

The company informed also that the fraud was related to retail vehicle loans disbursed by the company, involved forgery of KYC documents resulting in the misappropriation of company funds.

The company registered a case and after the investigation the Mizoram police arrested at least 11 people involved in the fraud including the business area manager of Mahindra Finance Jakir Hussain a resident of Tejpur, Assam.

The main accused sanctioned vehicle loans by creating fake files of over 2000 ghost customers. The police have also seized 15 vehicles and frozen several accounts related to the case.

After the financial fraud incident, the shares of Mahindra and Mahindra Financial Service have declined around 4 per cent and at the time of filing this report the share was trading at Rs 259 on the National stock exchange. 

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