Auditor gave satisfactory report on business operations, says PFS

PTC India Financial Services (PFS), which has been facing probe over alleged governance issues, on Monday said that a lender-appointed auditor has given satisfactory report on its business operations.

Last month, capital markets regulator Securities and Exchange Board of India (Sebi) had asked PFS-- a Non-Banking Finance Company (NBFC)-- not to make any changes to the company's board till the completion of the forensic audit.

The forensic audit began after former chairman and outgoing independent directors of PFS raised governance and other issues in January this year.

Agency for Specialised Monitoring (ASM) appointed by lender/s said the company is maintaining required level of transparency in terms of submission of data/statements to the lenders as stipulated at the time of sanction, PFS said in a statement on Monday.

The ASM reviewed the company's business operations for the period of January-March 2022, PFS said.

The cash flows for the review period were normal and there was no diversion of funds whatsoever and "we are of view that the loans funds availed by the company from banks/FIs have been utilised for the purpose for which it was intended", it said.

"We observed that there are no suspicious activity/transactions, case of mis-representation/suppression of facts and fraudulent practices. The business operations of the company are found to be satisfactory," PFS said citing the unnamed ASM.

Earlier in January, Sebi had asked PFS to address corporate governance and other issues raised by its former chairman and outgoing independent directors before holding its board meeting.

Three independent directors -- Kamlesh Shivji Vikamsey, Santosh B Nayar and Thomas Mathew -- resigned en masse from the board of PFS citing corporate governance and other issues on January 19.