Re-assessing Maytas Infra's assets must: Feedback Ventures

Published on Tue, Feb 24, 2009 at 11:15 | Updated at Tue, Feb 24, 2009 at 14:24 | Source : CNBC-TV18

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Vinayak Chatterjee, Chairman, Feedback Ventures, said the new board of Maytas Infrastructure must re-assess inventory of assets, as inventory, valuation of assets and money flows are key issues for Maytas now.

Chatterjee said Maytas Infra must separate private and government supported projects. “I see strong chances of many Maytas Infra projects to be revoked.”

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According to Chatterjee, the new Maytas Infra board must not have any stakeholders, as no serious player would invest in Maytas till liabilities are re-assessed.

Also read: Maytas Infra hearing postponed to Feb 26

Here is a verbatim transcript of the exclusive interview with Vinayak Chatterjee on CNBC-TV18. Also watch the accompanying video.

Q: Assuming that a new board takes over charge of Maytas what do

you think are the options in trying to salvage the situation?

A: I think the first issue that the new board will have to grapple with is to take an inventory of all the assets because from what we are reading it has about 6,800 or 7,000 acre of land in Andhra Pradesh, Maharashtra, Tamil Nadu, it might have smaller pockets of land elsewhere. It also has investments made till date in securing prestigious Hyderabad Metro project. So I think the task first is, 100% inventory of so called assets, the second task of the board would be after the inventory of physical assets is to see the valuation because on 16th December when the Satyam-Maytas deal was first talked about it was publicly announced that the value of Maytas was USD 1.3 billion. Is that for real or is it not is a million dollar question.

So to answer your question – inventory of assets, valuation of assets and I suspect the third option will be to get the cross flow of money that have been moving from Satyam to Maytas and from Maytas to promoter group affiliates and companies these are the three issues that will be up before the new board.

Q: The one question which investors have in assessing the projects of Maytas though is whether many of these projects might get revoked at a latter stage because of the suggestion of them being acquired under dubious circumstances. Do you think that’s a threat or people should assess the current project at hand at Maytas with the view that those projects stay will be executed if money can be pumped into the company and no reason to disbelieve the existence and execution of those projects?

A: I wouldn’t be so sanguine. I would in fact concur with your first hypothesis that the exact nature of projects that will remain or not remain with Maytas is certainly open to question in fact the awarding of projects is itself under a cloud. There are strong chances that many of the projects might be revoked as much as there is that the valuation may have been inflated so both of these are at play. But I think the first task will be of physical inventory and valuation of the assets then all the secondary issues can be followed through.

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