Government-appointed directors assessing Maytas’ health

March 19th, 2009 - 9:59 pm ICT by IANS  

Ramalinga Raju Hyderabad, March 19 (IANS) The government-appointed directors of Maytas Infra Ltd Thursday said they were trying to assess the health of the company and work out the future of its business.
Ved Jain and O.P. Vaish told a joint news conference here that they hoped to reach a debt-structuring agreement with lenders by April 25. The directors claimed that the firm had seen some cooperation from banks to help debt restructuring.

They said they were also working towards detailing the third-quarter earnings of Maytas Infra as soon as possible.

The government-appointed nominees met for the first time to take stock of the current state of affairs at Maytas Infra and Maytas Properties, two companies owned by the family of the former Satyam Computers chairman B. Ramalinga Raju.

The government is yet to name two more directors on the board.

The two companies came under clouds after Ramalinga Raju admitted Rs.78-billion (Rs.7,800-crore) accounting fraud in the IT major.

Jain said the board would meet again next week. “only then will we be in a position to work out where we are and how we intend to go forward,” he said.

The directors, however, refused to answer queries on the investigations against Maytas, saying they had nothing to do with the investigations.

“We are government nominees to ensure the smooth functioning of the company. Investigation is not our subject matter. We need to see that the company’s infrastructure projects go on stream,” Jain said.

They, however, clarified that they had not yet found any evidence of money being channelled to the Maytas from Satyam.

“In the few hours that we have spent with this company and with Maytas Properties, we have not found any money which we can say came from Satyam,” Vaish said.

Jain said the Maytas Infra management made a presentation and, “on the basis of that presentation, we have asked certain questions, certain clarifications, and more information which we believe the company will be in a position to provide in a day or two”.

He added that the company would talk to all vendors and stakeholders and would have informal talks with shareholders. The board has also decided to call a meeting with all flat owners on March 23.

Ramalinga Raju, his brother and former managing director of Satyam B. Rama Raju, former chief financial officer Vadlamani Srinivas and two former auditors from Price Waterhouse are in jail, facing charges of cheating, criminal conspiracy and forgery.

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