After banks & FIs, Ispat tries to make peace with Sebi
(ECONOMIC TIMES : February 20, 2003)

After making peace with banks and financial institutions, Ispat Industries is now trying to meet Sebi norms. The PK Mittal promoted steel company has recently inducted a new director on its board, in a bid to meet Sebi norms on corporate governance. The company has taken on board, Manu Chadha, a chartered accountant, in an independent capacity. This will take the number of independent directors to five, as against a total board strength of 13 members. "With this, we conform to the Sebi standard of having more than one-third as independent directors," a senior company official said. Mr Chadha, a senior partner with the Delhi-based TR Chadha and Co, has also been appointed as chairman of the company's audit committee. The board has four whole-time directors - PK Mittal (chairman-cum-MD), VK Mittal, Anil Surekha and Vinod Garg, while the lenders have four nominees. There has been one change among the lenders nominees. U Mahesh Rao, ICICI's previous representative, will now continue as an independent nominee, while the institution has appointed an employee nominee on the Ispat board. According to the restructuring package cleared in principle recently for Ispat, Essar Steel and Jindal Vijaynagar, financial institutions' stake in Ispat will go up to about 45% from about 35%. This is because the package stipulates that capital reduction and conversion of debt into equity shall be such that promoters and institutions have equal holding. The restructuring package cleared two months back has not yet been sanctioned as it is yet to get formal approval from the 40-odd lenders.