Shares of Kajaria Ceramics Ltd. will be in focus on Monday's trade after the company confirmed that Dilip Kumar Maliwal, CFO of its subsidiary Kajaria Bathware Private Limited, was found to have committed fraud over the period of last two years.
In an exchange filing on Friday, Kajaria Ceramics stated that the fraud was committed by Maliwal by the way of embezzlement and siphoning of funds of Kerovit Global Private Limited, a wholly-owned subsidiary of the company.
Kajaria Ceramics further stated that the estimated amount of funds involved in the fraud could be around Rs 20 crore.
In the wake of the fraud, Kajaria Ceramics has sacked the CFO from his position and a case has been reported to the Delhi Police for further investigation.
Meanwhile, Kajaria Ceramics has also set up a concall at 11:00 a.m. on Monday to discuss the matter further.
Impact Of Fraud On Kajaria Ceramics
The fraud may have a significant impact on Kajaria Ceramics' financials, potentially hampering up to 15% of the company's quarterly profit.
The number is derived directly from Kajaria Ceramics' latest quarterly profit of Rs 134 crore. Keeping the Rs 20 crore fraud in mind, this totals to an impact of about 15% on quarterly profit.
On an annual basis, the amount of the fraud totals to about 6.6% of Kajaria Ceramics' FY25 profit of Rs 300 crore.
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