Kajaria Ceramics has terminated the chief financial officer of its bathware business after uncovering alleged financial misconduct involving nearly Rs 20 crore at a subsidiary. The company has also filed a police complaint with Delhi Police’s Economic Offences Wing, pointing to a serious lapse in internal financial controls.
Kajaria Ceramics is India’s largest manufacturer of ceramic and vitrified tiles, with a strong presence across housing, commercial and infrastructure projects. The company operates several manufacturing facilities across the country and sells its products through an extensive dealer network. In recent years, Kajaria has expanded into premium bathware through the Kerovit brand, positioning itself as a broader building materials player.
In a regulatory filing on December 22, Kajaria Ceramics said Dilip Kumar Maliwal, chief financial officer at Kajaria Bathware, was found to have allegedly embezzled and siphoned off funds over the past two years. The alleged misconduct relates to Kerovit Global, a wholly owned subsidiary of Kajaria Bathware and a step-down wholly owned subsidiary of Kajaria Ceramics.
The company estimates the amount involved at around Rs 20 crore. A police complaint has been filed.
Kajaria Ceramics said internal findings indicate that the alleged misappropriation took place over an extended period, involving funds belonging to Kerovit Global, which operates in the premium bathware segment.
As the ultimate holding company, Kajaria Ceramics said the financial loss at the subsidiary level will have an impact on its consolidated financials. However, it did not disclose details on recoveries, insurance coverage or the exact impact on earnings.
Kajaria Bathware has terminated Maliwal from service with immediate effect. The matter will be placed before the appropriate committee of the board to determine further action.
The company also said it will review internal controls and strengthen oversight mechanisms across subsidiaries to prevent similar incidents in the future.