Religious Enterprises Limited (REL) has appointed Grant Thornton and Trilegal for a “governance review” and “identify potential instances of misconduct,” including former REL’s employees and two subsidiaries, the company said.
This is more than a month after the Myanmar Group finally took over as REL on February 7 after 18 months of protracted squadrons with former management led by Dr. Lashmi Saluja. On February 26, the Ruling Committee appointed four new directors – Abhay Kumar Agarwal, Arjun Lamba, Gurumurthy Ramanathan and Suresh Mahalingam as non-executive and non-independent directors.
One person who knows the development said it is similar to the forensic review of company finance in the past few years.
The Board of Directors “commits to conduct a governance review of RER and its subsidiaries, namely Reminare Finvest Ltd (“RFL”) and Reminare Housing Housing Development Finance Corp. Ltd (“RHDFCL”). The purpose is to review past operational practices, recommend improvements to systems and controls for future implementation, and to identify any instances of misconduct by specific current and/or former employees of the above-mentioned companies.
According to the lawsuit against the exchange, the board decided to work with Trilegal, a law firm that will be assisted by Grant Thornton Bharat LLP. Companies usually hire Grant Thornton for forensic audits.
The above said that the report on the governance review is expected to be within the next two months.
Former chairman Rashmi Saluja, who left the company after shareholders voted her, did not respond to news about governance comments about past actions initiated by the new board.
The Ruling Committee also applied for funding from the Berman family, now a group of promoters, citing emergency cash crunches within the company.
“The board has reviewed the company’s fund flow status and has observed a cash flow gap in the coming months,” the document said.
The filing added: “To meet funding requirements, the Board recommends that short-term corporate loans (“ICL”) from the Promoter Group or their same entity be best suited for the required schedule.”
The board of directors has requested loan from Myanmar Group ₹There are 30-40 crore rupees to meet short-term demand.
