Maytas Infrastructure Limited reported a net loss of Rs 251.86 crore for the year ended March 31, 2010, as compared with a net loss of Rs 473.54 crore last year. Its net revenues declined 33.19 per cent to Rs 1098.87 crore from Rs 1644.65 crore in the previous year.
Last year, Infrastructure Leasing & Financial Services Limited (IL&FS) has replaced the family of Satyam Computer Services Limited founder chairman B Ramalinga Raju as promoters of the Hyderabad-based infrastructure company.
According to the annual results approved by the Maytas board, the company’s fixed assets during the year decreased to Rs 357.59 crore as Rs 1,256.84 crore. For the quarters ended December 31 and September 30 of 2009, it incurred a net loss of Rs 55.34 crore and Rs 528 crore respectively.
The company did not publish the results in the stipulated time as its operations suffered due to its association with Satyam, where financial irregularities have come to light in January 2009. Following this, Maytas’ bank accounts were frozen and credit cancelled.
Consequently, the Company Law Board had allowed Maytas time till June 30, 2010, for publication of the financial results for the financial year ended March 31, 2009.
IL&FS, after stepping in as the promoters, arranged for priority debt and non-fund based facilities and reactivated work on construction sites. It also reached out to joint venture partners in construction and BOT Projects, banks, financial institutions and customers.
With the corporate debt restructuring scheme approved by lenders on this June 26, the company stated that Maytas was now in a position to avail additional credit facilities and gradually ramp up operations in the current year.
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An extraordinary general meeting (EGM) of Maytas’ shareholders would be convened on July 19 to seek their approval for preferential issue of 15.4 million equity shares of Rs 10 each at a premium of Rs 185.30 per share (Rs 300 crore) to Saudi Bin Ladin Group Investments Limited (SBGIL).
The partnership with SBGIL, according to the company, will enable Maytas recapitalise operations and access opportunities in Saudi Arabia and other Middle Eastern countries.
The EGM would also approve issuance of 6 per cent optionally convertible cumulative redeemable preference shares worth Rs 250 crore with an option to convert 30 per cent of these preference shares into equity shares of the company on September 30, 2012.
The company would also take up the matter of issuance of 6 per cent cumulative redeemable preference shares up to Rs 55 crore in one or more tranches to various lenders of Maytas and 2.82 million equity shares of Rs 10 each to lenders at the EGM.
In 2009-10, Maytas had sold its investments in GVK Guatami Power, Brindavan Infrastructure Company, Bangalore Elevated Tollway, Pondicherry Tindivanam Tollway Limited, KVK Nilachal Power, Himachal Sorang Power, SV Power, Cyberabad Expressway and Hyderabad Expressway to Maytas Investment Trust at value aggregating Rs 575 crore. Maytas also transferred equivalent amount of bank liabilities to the trust as per the approved corporate debt restructuring package.
The company also divested its shareholding in Machilipatnam Port Limited, Paschal Form Works and Paschal Framework Technology apart from losing the prestigious Rs 12,132 crore Hyderabad Metro Rail project.
Prior to April 1, 2009, the former promoters of Maytas had given inter corporate deposits worth Rs 391.64 crore to various companies including Rs 323.78 crore to Satyam Computer Services Limited (Mahindra Satyam). The company said it was confident of recovering the ICDs, which it hypothecated in favour of the lenders, together with interest due thereon.
Maytas stock traded at Rs 211.6, down 2.53 per cent from the previous close of Rs 217.10 on the Bombay Stock Exchange.