Religare Enterprises (REL) on Monday announced that its board has commissioned a governance review of REL and its subsidiaries, namely, Religare Finvest Limited (RFL) and Religare Housing Development Finance Corporation Limited (RHDFCL). For conducting the review, the company board has resolved to engage a law firm M/s Trilegal who would be assisted by M/s Grant Thornton Bharat LLP.
In a regulatory filing, the company said, “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. For conducting this review, the Board of Directors have resolved to engage a law firm M/s Trilegal who would be assisted by M/s Grant Thornton Bharat LLP.”
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Further, it added that the company board has also reviewed the fund flow position of Religare Enterprises and observed a cash flow gap over the next few months. After examining the various options, the board unanimously decided to approach the new promoters, the Burman Group, for immediate funding support to sustain the operations of the company.
“To address the funding requirements, the Board has recommended a short term Inter Corporate Loan (ICL) from the Promoter Group or its Associate Entities in the interim shall be best suited given the tight timeline for the requirement,” it said in the exchange filing.
On February 20, the Burman Group announced that it has taken control of Religare Enterprises and has been officially designated as its promoter. In an official press release, it had said, “Governance, trust, and integrity will remain at the core of our vision as we guide REL toward a future marked by resilience and maximized stakeholder value.”
Shares of Religare Enterprises were down by 2.96 per cent at 5:30 pm at a trading price of Rs 234.55.
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