Bulk tea-maker McLeod Russel India Ltd, which has been facing severe liquidity issues, has rejigged its Board and made changes in top level management.

Apart from appointing Pradip Bhar as the Chief Financial Officer (CFO) with immediate effect, it has appointed two new independent directors — Raj Vardhan and Suman Bhowmik for five years, the company said in a notification to the stock exchanges on Saturday. Bhar’s appointment comes on the back of KK Baheti’s resignation from the post of CFO.

Consequent upon his resignation, Baheti has also ceased to be the Wholetime Director and CFO of the company. He would be taking up another assignment in the group.

Rajeev Takru, Wholetime Director, who is due to retire by rotation has not sought re-election, instead he has expressed his desire to continue in advisory role post retirement.

Besides Takru, two other independent directors — R Srinivasan and Ranabir Sen — resigned citing old age.

Liquidity issues

McLeod, part of the BM Khaitan controlled- Williamson Magor Group, has been facing liquidity issues and has been selling its tea estates to repay its financial obligations.

In addition to the cash flows from the sale of assets and cost reduction measures, the company had to seek short term borrowings to fund various promoter group companies to enable them to meet their financial obligations.

This has resulted in higher finance cost and increase in current liabilities.

The company’s auditor Deloitte Haskins & Sells LLP had said that the ability of McLeod to continue as a going concern will solely depend on the acceptance of the refinancing proposal, which is not wholly within the control of the company.

Rating agency ICRA had recently downgraded the ₹1,031.09-crore bank facilities of McLeod as it “delayed meeting its debt obligation in a timely manner”.

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