Kajaria Ceramics has informed the exchanges that a police complaint has been filed with the Deputy Commissioner of Police, Economic Offence Wing, Delhi Police, New Delhi, against Dilip Kumar Maliwal, Chief Financial Officer and Key Managerial Personnel of Kajaria Bathware.
According to the regulatory filing, the complaint was against alleged embezzlement and siphoning of funds of Kerovit Global, a wholly-owned subsidiary of Kajaria Bathware (‘KBPL’), which is a step-down wholly-owned subsidiary of the Company. Kajaria Ceramics estimates the amount involved at around Rs 20 crore.
Two-year embezzlement uncovered
The company said Dilip Kumar Maliwal, chief financial officer and key managerial personnel at KBPL, was found to have committed the fraud over a period of the last two years. The alleged misconduct involved the misappropriation of funds belonging to Kerovit Global.
As the ultimate holding company of Kerovit Global, Kajaria Ceramics said the financial loss at the subsidiary level will have an impact on the listed entity.
Executive terminated, board review planned
Kajaria Bathware has terminated Maliwal from service with immediate effect. The company added that the matter will be placed before the appropriate committee of the board of directors to determine further action.
Kajaria Ceramics said it will also review internal controls and put additional safeguards in place to prevent similar incidents in the future.
