Shareholders of fraud-hit CG Power and Industrial Solutions has approved the proposal to increase the borrowing limit and raise up to Rs 5,000 crore for working capital and other business needs at the company's annual general meeting in Mumbai on December 14.

CG Power had said that given its current financial condition, the company is in urgent need of both long-term capital and working capital. The company is also seeking external advice on mode and sources of fund raising.

The shareholders have also approved the appointment of Sudhir Mathur as whole time executive director of the company, CG Power said in a regulatory filing on Tuesday. They also approved the appointment of Narayan Seshadri as an independent director on the board.

Mathur joined CG Power's board on October 1, 2018, as an independent director and moved into an executive role from May 10, 2019. Mathur and non-executive chairman Ashish Kumar Guha has been tasked to run the operations of CG Power after an alleged fraud of over Rs 3,000 crore came to light.

The company had in August said that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors".

Gautam Thapar, who was non-executive chairman of the company, was removed by its board on August 29.

CG Group incurred a net loss of Rs 652.38 crore during the year ended March 31, 2019. Its current liability exceeds its current assets by Rs 2,115.98 crore.

First Published:Dec 17, 2019 2:04 PM IST