Re: {LONGTERMINVESTORS} Dubious Managements ....Thread

[RAJESH DESAI]

Unquoted: Prraneta industries,Acil cotton industries
February 08, 2012 01:07 PM |  
Moneylife Digital Team

Stories of price manipulation

Prraneta Industries (Re0.36)
Prraneta Industries is supposedly engaged in textiles trading andfinancing. It is a case of how a fundamentally weak stock can be easily rigged in India. Moneylife wrote about this company (issue dated 8 April 2010) when its share price had surged from Rs2 on 13 March 2009 to Rs34.35 on 17 March 2010, an increase of 1618%. Subsequently, the share price rose to Rs79.10 on 28 February 2011, a further increase of 130%—a total rise of 3,855% in about 23 months.



By 18 January 2012, the share price had fallen by 100% to Re0.38. Its revenues for FY10-11 were Rs275 crore. Its revenues for June 2011 were Rs75.01 crore, while net profit was just Rs0.91 crore. In September 2011, turnover suddenly slumped to Rs33.23 crore on which profit was Rs0.20 crore. Intriguingly, the company will soon be called Aadhaar Ventures India Ltd. 

Acil Cotton Industries (Re0.37) 
Baroda-based Acil Cotton Industries is apparently into contract farming, cultivating cash crops like cotton, tur, jeera, groundnut, fruits, vegetables and a variety of herbs in Gujarat. On 19 April 2011, it announced a bonus issue of shares in the ratio of 1:1. In the past five quarters, its sales have been Rs17.05 crore, Rs12.28 crore, Rs9.53 crore, Rs0.9 crore and Rs0.22 crore, respectively,

On Thu, Feb 9, 2012 at 2:56 PM, RAJESH DESAI <stock...@gmail.com> wrote:

Did Manappuram insider bail out just before RBI deposit ban?

The curious case of Manapurram Finance, the loans-against-gold company that was recently pulled up by the Reserve Bank of India (RBI),  keeps getting murkier.

On Monday, 6 February, the RBI barred Manappuramand a related sole proprietary firm from raising public deposits, but even before the news was out, the wife of one of the company’s promoters was selling shares in the company.

Reuters

Sarada Sankaranarayanan, wife of Director AR Sankaranarayanan, sold 16,63,000 shares in the market at a price of Rs 57.75 through their broker Geojit BNP Paribas on 6 February before the RBI information was put in the public domain. Sale of shares continued the next day, when the same promoter sold another 11,63,000 shares at Rs 48.17. The shares opened lower when the market came to know about the ban.

Total proceeds from the sale on the first day work out to Rs 9.6 crore while on the second day it was Rs 5.6 crore. The average price of sale for the transactions works out to Rs 53.81 and the total proceeds added up to Rs 15.20 crore. The share currently trades below the average sale price at Rs 46.40, down 6 percent.

Does this sale amount to insider trading, when a relative of the promoter group sells shares before news that can have a material impact on the share price is widely disseminated?

Meanwhile, CNBC-TV 18  has reported that the central bank is contemplating regulating the gold loans sector. This is could be in the form of limits on the loan that a gold loan firm can give as a percentage of the value of the loan.

The RBI may also restrict the maximum interest that a gold loan firm can charge its customers, and also the penalties that gold loan firms can impose, CNBC-TV 18 reported.

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CA. Rajesh Desai

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CA. Rajesh Desai

[RAJESH DESAI]

SP Tulsian, sptulsian.com advice traders to stay away from IRB Infra .

Tulsian told CNBC-TV18, “IRB Infra, I really want to stay away because as I have expressed earlier also that I had my reservations on the valuation on the stock and when you have these type of news getting cropped up of the CBI inquiry, criminal investigation against the promoters and all that that can really work out to be very bad.”

He further added, “We have seen that those things happening and the erosion in the share price of many companies, I don’t want to discuss the names of those companies here where the erosion has happened to the extent of 75-80%. So, I am saying that that kind of erosion can really happen in the stock price, but I don’t think that one should really be too adventurous to enter into the stock maybe just that it has corrected by about 25% in the last couple of days or so.”

“ Educomp , there have been talks of this all corporate governance issues, but I take that report more on the lines of the Veritas report, which we have seen on DLF where the extreme view have been taken. Definitely that there are concerns of all sort of things, we have been hearing in respect to the company that all kind of adjustments in revenue or maybe the rising book debts, which has been adjusted and all sort of things, but yes, probably the effect of that can take the share price to fall to Rs 155-160 or so, but I won’t be taking the targets as given in the report to be the realistic one.”

On Wed, May 2, 2012 at 5:35 PM, Anish Poojara <anish....@gmail.com> wrote:

Core died a premature death as the promoters were more interested in playing the market rather than run the company.

Claris Life Science might sound like a Multinational to beginners and fool them into buying.

anish poojara

On Wed, May 2, 2012 at 3:56 PM, karishma suvarna <karishma...@gmail.com> wrote:

"Corporate Governance: Sushil Kumar Handa, one of Claris’ erstwhile promoters and father of existing individual promoter Aditya S. Handa had promoted a company, Core Healthcare Limited (“CHL”), which was unable to repay its debt under certain term and working capital loans granted to it by various lenders, including the Bank of Baroda (“BoB”). Also, CHL is listed onwww.watchoutinvestors.com in relation to regulatory non-compliances, on account of which regulatory action and penalties have been initiated and imposed by SEBI for violations of securities laws, suspended from trading by the BSE and NSE for violations of the listing agreement & non-submission of corporate governance report & failure to submit shareholding patterns, and by the CDSL and NSDL in relation to pending dematerialization requests. Furthermore, there are certain criminal cases pending under the Drugs and Cosmetics Act, 1940 against Sushil Kumar Handa, relating to product liability, on account of various products allegedly being of substandard quality, adulterated and failing to comply with statutorily prescribed quality standards. He was declared as a proclaimed offender due to non-appearance at hearings in one such instance. 


There are Criminal, Civil, Revenue Cases & demands filed against the Company, Subsidiaries, Promoters, Directors, Group Companies and group companies of Aditya S. Handa, the existing promoter as well. "

 

"Old investors may not kind enough to read anything about this company if they know the main promoter of Claris Lifesciences Mr. Arjun S. Handa is the son of Mr Sushil Handa, who was the promoter of Core Healthcare Ltd (CHL). Core Healthcare was a star in Indian stock market and its share price touched four digit marks in 1990 -1994 period .It was not without a reason or because of price rigging. CHL started by Sushil Handa - an MBA- from Punjab in 1986.Its state-of -the art manufacturing facility was located in a 600 acre campus near Ahmedabad . In just seven years CHL becomes the largest manufacturer of IV Fluids in Asia with excellent growth rate . The death was equally dramatic as the growth . Company went into serious troubles and ends as a winding up case.Many points mentioned as the reason for these unbelievable fall ,some of them are following :


* Siphoning of money by the top management 
*Diversion of company fund to own business
* Over aggressiveness and over expansion using leveraged funds 
* Inexperience of Handa as a first generation entrepreneur
* Exports without letters of credit to countries where exports were not backed by RBI guarantees 
* Crash of USSR where company had significant business interests 
* Diversification to unrelated fields like power which caused for a clear loss of Rs.100 Cr

From a Blog

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Karishma Suvarna

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CA. Rajesh Desai