Financial services company Religare Enterprises has commissioned a governance review of REL and its subsidiaries, Religare Finvest and Religare Housing, as well as sought immediate funding support from new Promoters - the Burman Group - to sustain operations, the company said in an exchange filing on March 17.
For the review, the Board of Religare said it will be engaging law firm Trilegal, who would be assisted by Grant Thornton Bharat LLP.
"The objective is to review the past operating practices, suggest improvements around systems &
controls for future implementation and to identify any potential instances of misconduct by certain
current and/or ex-employees of the aforementioned companies," the company statement said.
Religare Enterprises' review will cover past operating practices, and the company is appointing legal advisors to seek improvements around systems, and to identify any potential instances of misconduct by 'certain current and/or ex-employees'.
To address the requirement of funding, Religare Enterprises said it has recommended a short term Inter Corporate Loan from the Promoter Group, which will be 'best suited given the tight timeline' for the requirement. The Board reviewed the fund flow position of the company, and noted a cash flow gap over the next few months, thus prompting it to seek funding support from the new promoters.
Soon after the Burman family had acquired the majority control of the company and were designated as its promoters, the company had said in a statement, "Our vision for REL is anchored in governance, trust, and integrity, guiding us towards a future built on resilience and maximising stakeholder value." The group highlighted its top priority as establishing stability, enhancing governance, and fostering sustainable growth within the company.
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