Religare Enterprises Initiates Governance Review of Subsidiaries

Religare Enterprises Ltd. has taken a proactive step by commissioning a comprehensive governance review that extends to its subsidiary entities, specifically Religare Finvest Limited and Religare Housing Development Finance Corporation Limited. This decision was disclosed in a regulatory filing made by the company.

Objectives of the Governance Review

The primary aim of this governance review is multifaceted:

• To evaluate historical operational practices
• To propose enhancements in systems and controls for future implementation
• To identify any possible misconduct linked to current or former employees of the mentioned subsidiaries

Appointment of Legal Experts

To facilitate this review, Religare has resolved to engage the services of the law firm Trilegal. They will be supported by Grant Thornton Bharat LLP, a well-known advisory entity, to ensure a detailed and thorough examination of governance practices across the organizations involved.

Funding Support from New Promoters

In light of the ongoing review and to maintain operational stability, the Board of Directors has also deliberated the necessity of approaching the new promoters, the Burman Group, for immediate financial assistance. This comes after an assessment revealed a significant cash flow gap anticipated in the coming months.

The board suggests that a short-term inter-corporate loan from the promoter group or its associated entities may serve as an effective solution to bridge this financial gap within the specified timeline.

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