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Informist, Monday, Dec. 22, 2025

 

By Sunil Raghu and Arya S. Biju

 

AHMEDABAD – Kajaria Ceramics Ltd.'s management Monday said the chief financial officer of its wholly owned step-down subsidiary siphoned of INR 200 million over the past two years due to a lapse in its systems and control.

 

The management further said that as per its findings, this was just a single-person act and that it is not very hopeful of recovering the entire amount. "We are not hopeful even half will be recovered. But he has promised to return some money," the management said in an analysts call. 

 

Post market hours Friday, Kajaria Ceramics said Dilip Kumar Maliwal, chief financial officer of its wholly owned subsidiary Kajaria Bathware Pvt. Ltd., was found to have committed a fraud of INR 200 million over the past two years. The company said Maliwal was involved in embezzlement and siphoning of funds of Kerovit Global Pvt. Ltd., a wholly owned subsidiary of Kajaria Bathware and a step-down wholly-owned subsidiary of Kajaria Ceramics.

 

Kajaria Ceramics management had filed a complaint with the Deputy Commissioner of Police, Economic Offences Wing, Delhi Police, and the Station House Officer, Badarpur police station, on Thursday. The matter is currently under investigation. 

 

A financial loss due to the fraud in Kerovit Global will impact the company, being an ultimate holding company of Kerovit Global, it had said in the filing on Friday.

The company said apart from filing the complaint with the police, Kajaria Bathware has terminated the services of Maliwal. The matter will be put up before the appropriate committee of the board for taking further steps to ensure safeguards are put in place so as to avoid such incidents in the future.

 

"All other companies and subsidies are completely reviewed, and there is no discrepancy there at all," the management said adding that it found the fraud post review by its internal team, and it was found to have been carried out single-handedly by Maliwal. "But we are in the process of rechecking, even we may go for a forensic audit for this particular subsidiary. So, we will not leave anything, we will not allow this thing to happen again at all."

 

Kajaria management insisted that the current episode may not have come to light had they not been in the process of systems, processes, and MIS audit that was initiated as part of Kajaria 2.0. The company found some inconsistencies in Kerovit Global, while migrating its existing vendors to the company's vendor portal. Kajaria management said that Maliwal had carried out fraud by making certain payments to himself by falsely registering himself as a company vendor. The management claimed that Maliwal even forged signature of his superiors. Most of the siphoning of funds by Maliwal was done in the current financial year, the management added. 

 

The management insisted that going ahead, they would put "very stringent" systems and processes in place. "There will be no compromise at all. We will make complete watertight systems, very, very strict systems."

 

Kajaria Ceramics had reported a consolidated net profit of INR 1.33 billion for the September quarter on revenue of INR 11.86 billion. At 1258 IST, shares of the company traded 0.4% lower at INR 1,049.50 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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