Prajay Engineers Ltd: Shamelss Promoters & Cooked up Results

Prajay Engineers Sydicate Ltd is a listed entry in Bombay Stock Exchange, but it seems the promoters think it to be their own properties. It has been presenting (probably) cooked up results, quarter after quarters, in full view of the regulators, who are like statutes. Now while the directors are enjoying most of the benefits of the mango, the shareholders are given the seed of the mango, to suck. Very unfortunate!! These people have no shame at all, as they go on declaring projects after projects, with all profits probably sucked by the dishonest management.

The company has an unending appetite of doing projects and making money from them, but then on the books the profits are few lakhs and even losses. 

It has huge land holdings, but then for shareholders it is all cipher--no use, as no one knows where the company's lands are....because it does not have a habit of disclosing the details to the stock exchanges, probably because of their feudal mentality!! The good will of the Hyderabad based companies have been long lost after the "Satyam Computer Fiasco", some years back, and it is one of those time bombs waiting to burst, if the regulators do not become strict. 

If we analyze the results of the company since last 5 quarters (more than one  year), we would find that, the net profits in any quarter have never crossed Rs.6 lakhs. Also, during the last 5 quarters the revenues of the company have never crossed Rs.40 Cr. In Q4FY12, I think we have seen the height of imaginary results. On a turnover of Rs.28.17 Cr, the expenditure is whooping Rs.27.60 Cr. And hold your breadth the net loss is Rs.5.55 Cr!! Now there there is no end to the manipulation: The NPM speaking on the basis of Q-o-Q comes down from (-) 1.75% in Q4FY11 to (-) 19.72% in Q4FY14. Simply a joke!! Have you heard such fluctuation in good listed companies? But it can happen even worse if the dishonest promoters are given a free hand on the things (who do not even  have the controlling stake in the company according to the latest figures presented on the site of BSE). 

The question now is: Is the company running any charitable institution? Or is it running a listed company? Even a good Kirana (Retail shops) Shop in Bombay has an average net profits of few lakhs in a quarter and mind that this is BSE listed company, having an asset base of few crores and doing projects worth crores. Hilarious but sad for the poor shareholders, who have seen their wealth plummet almost 100 times when the shares of Prajay Engineers Syndicate Ltd were quoting around (its peak level) Rs.480 plus to the CMP of around Rs.5.68. The promoters probably think all the investors are jerks and morons that they can do whatever they like. Last time, I took on the management of Jamna Auto Ltd and you must have seen how the company performed after that.....the shareholders need to be outspoken and vigilant---or else these crows will suck every penny from their pocket.

Anyway, the tragedy for the shareholders does not end here. No one knows what projects the company is doing or the progress of the projects. The company's website is almost defunct. I have been told by one of the sources that the website is being maintained from Bangalore, and soon it will be uploaded--don't know when. The word, "Soon" can denote 5 years also, if the promoters are greedy and dishonest.
Meanwhile, the greedy promoters who only have 23.63% of the stake in the company have pledged around 28.90% shares, may be for working capital requirements. The greed for making money to fill their coffers does not end here, as it is going hammer and tongues, project after project. The company has land in Hyderabad and Vizag, and according to the sources, the company is doing projects there too......Huh!! I am hearing this since the last couple of years, but do not know what is the current status of the projects--or all these are to pacify the angry shareholders!!!!!!!!!!

Moreover, the question is: can they be called projects or making of "Dharma Shalas" if on a turnover of Rs.38.83 Cr (Q4FY11), the company has expenditure of Rs.30.55 Cr or PBDT is only Rs.4.57 Cr. Suddenly the provisions for taxation becomes Rs.4.17 Cr. This year (Q4FY12) it is even worst--the tax component shooting more than 10%, Y-o-Y. 

All these are going on quarter after quarter, while the regulator/s is/are looking on the other side. There has been no attempt to pull the auditor of Prajay Engineers Syndicate Ltd, who is also probably a party to all these mischievous and wrong doings--a "Sham", profit and loss A/C is being presented quarter after quarter....as the share price drops, day after day....

Now when a Satyam Computer Ltd like thing will happen, suddenly the regulators will wake up from dream and start sending out all sorts of gimmick filled statements, like they did in case of Pyramid Saimira Theaters Ltd (PSTL). The promoter of PSTL is still at large while no one knows whether the shareholders will get a little pie from the liquidated assets or not. The regulators are busy asking the authorities to go in for compulsory de-listing---but no one knows what happened to the case of open offer. Or how will the open offer be triggered, if the stock is de-listed compulsorily. It seems no one bothers for safeguarding the wealth of small investors.
Case after case this is going on starting from DSQ Software Ltd, to Kolar Biotech Ltd, IFSL Ltd, to Shree Vasavi Industries Ltd to Ennore Software Ltd, etc, but regulators are busy finding out which share can be placed in the T-group and again brought back, so that a section of investors in their know, benefits. It is surprising to note that the regulators allow unbridled, speculations in the OPTIONS MARKET, where a Re.1 (one) CALL can become Rs.5 in one day---the regulators do not have problems with this kind of volatility. But they have problems with some companies only!! They do not have problem if in the F& O market, a share can tank more than 100% in one day (do you remember the Satyam Computer case). There are lot of companies in the F&O which have equity capital less than some of the companies who are placed in the T-group, but this goes on and on. 

I recently came across a knowledgeable gentleman, who has a website named, INVESTORS ARE IDIOTS. I also feel the same: taking the advantage of the ignorance of the investors,  both the regulators and the companies are eating BUTTER CHICKEN. We also have a defunct Finance Ministry, whose chief protagonist is probably now busy to become the President of India---who will care for the hapless small investors!! The lack of participation or fall in the urge to invest in the equity market, is due to fact that the small investors have been treated very badly not only by brokerage  houses, but also by the regulators and the promoters of companies. The dirty promoters go in for expansion after expansion and then sell the ventures, showing extraordinary income, giving nothing to the shareholders (Do you remember the case of recent doing of the Piramal Group and Essar Group in earlier occasions). 

I therefore take this occasion, to invite all those who are holding the shares of Prajay Engineers Syndicate Ltd to write strong letters to the company's promoters, using the e-mail: info@prajayengineers.com (www.prajayengineers.com), saying that if the company does not disclose the required information about the ongoing projects or stop presenting cooked up balance sheets, to the stock exchanges (Bombay Stock Exchange) then the investors' forum could file a RTI, against the company; so that everything becomes clear and the dishonest promoters are trapped and tagged to appropriate places. 

It is disgusting to find how the promoters of companies loot the gullible investors by opening public limited companies and operate them as if it's their fiefdom (their father's company). Down with the dishonest Promoters of Prajay Engineers Syndicate Ltd!! Long live small investors!! It is time we act in group, or else be prepared to get perished!!