**Religare Enterprises Conducts Governance Review Amid Leadership Changes**
Religare Enterprises Ltd (REL) has engaged Grant Thornton and Trilegal to perform a governance review aimed at identifying potential misconduct, including actions by former employees. This decision follows the Burman Group’s takeover of REL on February 7, after an 18-month struggle with the previous management led by Dr. Rashmi Saluja. On February 26, the REL board appointed four new non-executive and non-independent directors: Abhay Kumar Agarwal, Arjun Lamba, Gurumurthy Ramanathan, and Suresh Mahalingam.
### Governance Review Objectives
– **Scope of Review**: The governance review will assess past operating practices, recommend improvements for future systems and controls, and identify any misconduct by current or former employees of REL and its subsidiaries, including Religare Finvest Ltd (RFL) and Religare Housing Development Finance Corp. Ltd (RHDFCL).
– **Engagement of Experts**: The board has decided to hire Trilegal, with assistance from Grant Thornton Bharat LLP, known for conducting forensic audits.
### Financial Challenges and Funding Needs
– **Cash Flow Issues**: The REL board has reported a cash flow gap anticipated over the coming months. To address this, they have recommended a short-term Inter Corporate Loan (ICL) from the Burman family, now the promoter group.
– **Urgent Funding Requirement**: The board’s filing indicated that the funding from the promoter group is crucial given the tight timeline for addressing the company’s financial needs.
The reports from the governance review are expected within the next two months. Former chairperson Rashmi Saluja, who was ousted by shareholders, has not commented on the ongoing governance review.
**FAQ: What is the purpose of the governance review at Religare Enterprises?**
The governance review aims to evaluate past operating practices, suggest improvements for future systems, and identify any potential misconduct by current or former employees.
**Alt Text**: Governance review at Religare Enterprises Ltd with Grant Thornton and Trilegal.
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