Fraud / Corporate Governance Issue

Laxmi Goldorna House Reports Fraud by Former CFO Involving Fund Siphoning

NSE

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BSE

NOT LISTED

Laxmi Goldorna House Limited disclosed a fraud involving alleged embezzlement and siphoning of company funds by its former Chief Financial Officer, with the estimated amount involved being approximately ₹85–90 lakh.

PRICE-SENSITIVE TRIGGER

Event: Reporting of Fraud by Former CFO

Type: Fraud / Corporate Governance Issue

Impact: Negative

Immediate Effect: The company has initiated steps to file a complaint with appropriate authorities and strengthen internal controls and governance mechanisms.

Key Metrics:

Estimated Fraud Amount: Approximately ₹85–90 lakh
Period of Occurrence: Over the last one year
Person Involved: Former CFO and Key Managerial Personnel
Estimated Impact: To the extent of the fraud amount identified

Highlight:

Approximate Fraud Exposure of ₹85–90 Lakh Identified

What Happened ?

Laxmi Goldorna House Limited informed stock exchanges that its former Chief Financial Officer, Mr. Jaykumar Patel, was found to have allegedly committed fraud through embezzlement and siphoning of company funds over a period of approximately one year during his tenure as CFO.

The disclosure was made under Regulation 30 of SEBI Listing Regulations following internal identification of the issue.

key highlights

Fraud & Internal Funding:

The company identified alleged embezzlement and siphoning of funds.
The fraud reportedly occurred during the tenure of former CFO Mr. Jaykumar Patel.
Estimated amount involved is approximately ₹85–90 lakh.
The matter pertains to activities conducted over the past one year.

Regulatory & Corrective Action:

The company stated that it is in the process of filing a formal complaint with the appropriate authorities.
The issue will also be placed before:
- Audit Committee
- Board of Directors
Management plans to implement:
- Stronger internal safeguards
- Enhanced checks and balances
- Improved governance oversight mechanisms

Governance Measures:

The company indicated that additional preventive mechanisms will be introduced to avoid recurrence of similar incidents in the future.
Internal control processes are expected to undergo review and strengthening.

Note:

The disclosed impact is currently limited to the estimated fraud amount identified by the company.

Risk Analysis

Key Risks:

Potential reputational damage.
Weaknesses in internal financial controls.
Possible legal and regulatory scrutiny.
Additional undiscovered irregularities cannot be ruled out immediately.

Worst Case Scenario:

If further discrepancies emerge or recovery actions fail, the company could face higher financial losses, regulatory action, and loss of investor confidence.

Risk Level: High

Company Commentary

The company stated that the fraud involved embezzlement and siphoning of company funds.
Management confirmed that complaints are being prepared for filing with appropriate authorities.
The matter will be reviewed by the Audit Committee and Board.
Laxmi Goldorna House plans to strengthen safeguards and internal control systems to prevent recurrence.

Official Exchange Filing: Laxmi Goldorna House Limited