PTC India Financial Services (PFS), which was under investigation over alleged governance issues, said Monday that an auditor appointed by the lender had provided a satisfactory report on its operations.

Last month, the capital markets regulator Securities and Exchange Board of India (Sebi) asked PFS – a non-banking finance company (NBFC) – not to make any changes to the company’s board of directors pending the completion of its forensic review.

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

The lender-appointed Agency for Specialized Monitoring (ASM) said the company was maintaining the required level of transparency in relation to the transmission of data/statements to lenders, as set out at the time of the sanction, PFS said in a statement on Monday .

The ASM reviewed the company’s operations for the period January to March 2022, PFS said.

Cash flows for the period were normal with no diversion of funds and “we believe that the Company’s bank/FI borrowed funds were used for their intended purpose,” it said.

“We found no suspicious activities/transactions, instances of misrepresentation/suppression of facts and fraudulent practices.

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

Three independent directors – Kamlesh Shivji Vikamsey, Santosh B. Nayar and Thomas Mathew – resigned on April 19.

(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)