Prajay Engineering .........Lost

Like the series lost and like its 2009 accounts

Prajay engineers is a small hyderabad based company which till 2008 was the darling of FIIs

Then Satyam happened

And something equally strange happend .......... here is what happened in the companies ownn words

“After the year end, basic records relating to sale agreements/ revenue and construction expenses of one of the Projects of property development were lost at the site office, Vishakhapatnam. The company “lost” records for a project worth 40% of its annual revenues at the site office.
http://www.dnaindia.com/money/report_where-corp-governance-was-questioned_1220249


NET Profits have Plunged and never looked up
in Cr.) 2009 -10 2008 - 09 2007 - 08 2006 - 07 2005 - 06
Net Profit 2.03 -0.99 102.87 77.25 22.73


After Deloitte Haskins & Sells first raised the issue auditors have continiously ben issuing limited reviews about Non provision for sundry debtors who havent paid for more then 6months and loans and advances not repaid for more then 6months
management rarely bother to reply to these and the reviews keep appearing

The company has had the same auditor for nearly 4 years (or more) a Mr S V RANGAN suddenly between 2007 and 2008 AGMs they decided to get one of the BIG FOUR Deloitte Haskins & Sells as auditors ........ not too surprsing;ly after a few months Deloitte Haskins & Sells decided to quit ..... after satyam no one wanted to be stuck with companies who "lost" their accounts
the company hired mr rangan again in 2009 he is till today the auditor

the shareholding too has changed dramatically

heres the shareholding as in dec 2008

PRAJAY ENGINEERS SYNDICATE LTD.

Scrip Code : 531746 Quarter ending : December 2007

Shareholding belonging to the category
"Public" and holding more than 1% of the Total No.of Shares

Sl. No. Name of the Shareholder No. of Shares Shares as % of Total No. of Shares
1 Copthall Maritius Investment Ltd 457,701 1.66
2 Citigroup Global Markets (Mauritius) Pvt Ltd 1,217,640 4.41
3 ABN Amro Bank N.V. London Branch 1,310,310 4.75
4 Merrill Lynch Capital Markets Espana S.A.S.V. 1,351,863 4.90
5 Arisaig Partners (Asia) PTE Ltd A/c Arisaig India 1,701,727 6.17
6 General Electric Pension Trust 812,719 2.95
7 GE Investments Group Trust Emerging Markets Equity 335,872 1.22
8 Merrill Lynch International Investment Funds 522,117 1.89
9 MSAM Sub A/c Ind 285,700 1.04
10 Morgan Stanley Investments Mauritius Ltd 645,445 2.34
11 Morgan Stanley Mauritius Company Ltd 599,704 2.17
12 LB India Holding Cayman II Ltd 1,006,146 3.65
13 Swiss Finance Corporation Mauritius Ltd 339,254 1.23
14 Goldman Sachs Investments Mauritius India Ltd 1,066,159 3.86
15 S Madhuri Reddy 368,000 1.33
16 V Smitha Reddy 360,000 1.30
17 Deutsche Bank AG London 3,349,037 12.14
18 Goldman Sachs Investment Mauritius Ltd 1,116,345 4.05
19 Copthall Mauritius Investments Ltd 601,954 2.18
20 ACACIA Partners LP 334,999 1.21
Total 17,782,692 64.45

most of the holdings were from mauritius based companies

this is the latest share holding
PRAJAY ENGINEERS SYNDICATE LTD.

Scrip Code : 531746 Quarter ending : December 2010

Shareholding belonging to the category
"Public" and holding more than 1% of the Total No.of Shares

Sl. No. Name of the Shareholder No. of Shares Shares as % of Total No. of Shares
1 Copthall Mauritius Inv Ltd 1,285,891 2.18
2 Merrill Lynch Capital Markets Espana S.A.S.V. 1,877,975 3.18
3 Ultimate Money Makers India Pvt Ltd 683,760 1.16
4 Il & FS Securities Services ltd 975,650 1.65
5 Nandi Ravinder Reddy 7,945,313 13.47
6 Merlin Securities Ltd 5,336,134 9.04
7 Surbhai Saroj Kumar Jain 1,000,000 1.69
8 Deutsche Securities Mauritius Ltd 2,530,998 4.29
9 Money Tree Media Ventures Pvt Ltd 1,910,000 3.24
Total 23,545,721 39.90

most have left

the price ..........w ell it went down formm 440 odd to 15 and unlike most stocks it hasnt staged any meaningful recovery