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Richa Mishra
K.R. Srivats

New Delhi, April 25 Business continuity and selection of a chief executive officer (CEO) will top the agenda of the Maytas Infra board meeting slated for early next week.

While indicating that the CEO will be someone from within the organisation, official sources told Business Line that “the immediate requirement was to arrange funds for implementing the projects that were on hand.”

As on date, the company had an order book of Rs 8,000 crore besides the Hyderabad Metro project. The key issues before the Board include how to implement the ongoing projects and job allocations (assignment of resources), sources said.

The directors have worked out an action plan, sources said, adding that “bankers have been approached for raising funds and measures are being taken to maintain the cash flow including talking to those people who owe money to the company.”

The Board meeting will take place in Hyderabad.

Maytas Infra, the infrastructure company promoted by Mr B. Ramalinga Raju and his family, found itself in trouble following Satyam founder Mr Raju’s confession of financial mismanagement in Satyam.

The six-member Maytas Infra Board has four Government nominees including a Chairman, Mr K. Ramalingam, who was former Chairman, Airports Authority of India. The Government nominees were appointed at the directions of the Company Law Board.

The other two members on Maytas’ Board are Mr B. Teja Raju, Vice-Chairman of the company, and Mr B. Narasimha Rao (Additional Director).

The Board has started the search for a CEO. After the Board meeting, the newly constituted audit committee of Maytas Infra is also expected to meet. In the wake of the ongoing investigations initiated by the Serious Fraud Investigation Office and other investigating bodies, the committee may seek more time for closing the company’s books for the last fiscal.

The expanded Board at its first meeting constituted four committees — project management, audit, banking and finance, and legal.

Mr Ved Jain, Government nominee on Maytas Infra Board, said, “We are confident that the company can take its business forward. The company has a large order book. In fact, that is what has been highlighted while seeking corporate debt restructuring (CDR) nod.”

There are two aspects which need to be factored in while considering the CDR, he said. The first is that the financial strain is not because the company has done something wrong; it’s due to the global meltdown that the infrastructure business has taken a hit, and second, the Satyam incident, Mr Jain said, adding that “this is why Maytas deserves a restructuring”.

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