The newly-appointed board members of Maytas Infra, promoted by Satyam Computer Services founder B Ramalinga Raju, would meet the lenders tomorrow to discuss corporate debt restructuring and steps to be taken to ensure that various projects are not affected.
Speaking to Business Standard, taxation lawyer and one of the board members OP Vaish said the board would meet frequently to address various issues pertaining to Maytas. "Our effort would be to fill the gaps that have arisen in the circumstances in the overall management of the company,'' Vaish said.
Among others, the board would look to appoint various committees that a listed company is expected to have. The company also has a concern for the lenders and is working to complete various projects, he said, adding the board would ask the banks and financial institutions to continue their cooperation. "At this point it is difficult to say what measures are needed for bringing the company back on track,'' Vaish said.
Another member and former president of the Institute of Chartered Accountants of India Ved Jain is scheduled to meet the customers of Maytas Properties later in the evening today.
Thursday's meeting would be the second meeting after Vaish and Jain were appointed by the government on the board.
Last week, the board, which was chaired by Vaish, decided to get in touch with various stakeholders and expected to reach an agreement with the lenders by March 25. It sought more information from Maytas particularly with reference to the various projects the company was implementing or was negotiating to assess where it stood. The board had ruled out prospects of Maytas Infra seeking a suitor to bail it out.
The board acknowledged that the company's credibility took a beating after Ramalinga Raju confessed to cooking the books. The company, which bagged the Rs 12,132-crore Hyderabad Metro Rail project through a consortium, failed to achieve the financial closure for the project on March 17 and sought an extension for the same.
More From This Section
Hyderabad Metro Rail Chairman CVSK Sarma said the government was examining the request of Maytas Infra for extension but did not specify any time frame for it.
The board stressed it has not found any instance of money being diverted from Satyam to Maytas and expressed confidence in the company.
Maytas had sought time to announce its third quarter results. Its income was Rs 353.76 crore as of September 30, 2008, and net profit at Rs 16.84 crore. The company has Rs 119.83 crore unused of the total Rs 327.45 crore that it raised through the IPO. It spent Rs 138.05 crore for purchase of equipment and meeting other corporate expenses and invested Rs 69.57 crore in associate companies.