Religare, a financial services company, has submitted an exchange filing stating that it aims to review its past operating practices, suggest improvements, and identify potential cases of misconduct by current or former employees. This move comes as the company faces a cash-flow gap and has approached the Burmans, its major shareholder, for immediate funding support to sustain its operations.
The cash-flow gap is expected to affect the company’s operations over the next few months, and Religare has requested the Burmans to provide funding support to bridge this gap. However, the company has not disclosed the extent of the funding required.
It’s worth noting that this is not the first time Religare has faced financial challenges. Under the leadership of former chairperson Rashmi Saluja, the company had opposed the Burmans from increasing their stake in the company. Saluja was later removed as chairperson in February, as her reappointment was not approved.
The current situation highlights the company’s ongoing struggles, which may be linked to the previous leadership’s decisions. The review of past operating practices is aimed at identifying any potential instances of misconduct by current or former employees, which could have contributed to the company’s current situation. The company’s board will need to investigate and address these issues to restore investor confidence and stabilize its operations. The immediate need for funding support from the Burmans underscores the urgency of the situation, and it remains to be seen how the company will navigate this challenging period.