Though the government has decided to give Maytas Infra the same treatment administered to the scam-hit Satyam Computer Services — by letting another company take over management control — the results would not be comparable as the problems of both companies are different, analysts said.
While in Satyam’s case, it was all about fudged accounts and an effort to unearth the truth besides protecting the interests of the employees and shareholders, the case with Maytas is different.
The infrastructure company has been suffering collateral damage and its balance sheet was never supporting the company to go in for major projects, forcing the company to look for the consortium model.
“There is no reason to believe that IL&FS would do a Tech Mahindra in this case. The case of Maytas was always weak in terms of financials. After it ran into troubles, it was a typical case of a corporate bleeding, unlike the case of Satyam, which was more to do with the balance sheet and right accounting practices,” an analyst tracking the developments at Maytas said.
Maytas claims to be having a balance sheet of Rs 7,500 crore with projects under execution from various sectors. For the company to start bidding for projects, it should have balance sheet strength of its own and a profit record. For the year ended March 2009, the company recorded a turnover of Rs 1,645 crore and a net loss of Rs 473.56 crore.In addition, Maytas is also having to deal with investigations related to Satyam.
Maytas has already given out Rs 380 crore to Raju companies in the form of inter-corporate deposits. The fate of these deposits is not known, though the money is believed to have gone into Satyam.Maytas was promoted by Ramalinga Raju’s elder son Teja Raju and many of the Raju family members hold stake in Maytas, including Ramalinga Raju himself.Raju’s younger son Rama Raju Junior runs Maytas Properties, which is also under scanner.
The only silver lining is the clearance from the corporate affairs ministry that there was no diversion of funds from Satyam into Maytas. However, Maytas money flowing into Satyam has not been ruled out.
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