The RoC has appointed an official liquidator to wind up Geodesic following orders from Bombay High Court. In July, the company's five directors were booked for cheating investors for Rs720 crore
Geodesic Ltd, the internet software and service provider, which has run up more than Rs1,200 crore of liabilities, defaulted in repaying its foreign currency convertible bond (FCCB) holders and loans to financial institutions, has been issued a winding up order by the Registrar of Companies (RoC), following direction from the Bombay High Court.
In a regulatory filing, BSE said it was informed by the Deputy Registrar of Companies at Maharashtra that Geodesic was ordered to wind up. "(An) Official Liquidator has been appointed as a provisional liquidator in the Company Petition 471 of 2013 in Company Application (L) No. 153 of 2014 by the High Court, Bombay dated 7 April 2014," it said.
According to a report from Livemint, in July, a first information report (FIR) was lodged against Geodesic after its five directors were booked in connection with a case of cheating investors to the tune of Rs720 crore.
As reported by Moneylife , the company had used services of bouncers during its annual general meeting (AGM) on 10th May. Nitin Rao, a shareholder, who attended the Geodesic AGM, shared his experience on his blog: www.alphaideas.in. He wrote, “the meeting was sparsely attended by shareholders but there were around a dozen bouncers at the AGM. Either the management wanted to intimidate shareholders or they feared the proceedings will get rowdy.”
“The meeting started with the chairman welcoming the shareholder who mentioned that he wanted to be upfront with the shareholders and accounts had to be restated owing to write off of receivables etc. The chairman said, FCCBs couldn’t be repaid as funds are locked into investment accounts and liquidating them now will result in not meeting their liabilities. He gave the status update of all the court cases on Geodesic. He invited the shareholders to join the Board to help the company in its time of crisis,” Rao wrote in his blogpost.
During the meeting, one of the investors from Nashik, said that, “Chairman had lied to shareholders, accounts had to be restated, as all the sales were fake. FCCBs couldn’t be repaid as the money has been siphoned off by promoters and alleged that the promoters are thieves and he had lodged a police complaint against them.”
In reply, Prashant Mulekar of Geodesic told the investor that all these were lies and the company is being harassed. Mulekar also accused the investor of filing a complaint against the promoters at Nashik. The shareholder had apparently told the police that the promoters had met him at his hotel in Nashik and encouraged him to buy shares in the company, painting a rosy picture, the blogpost mentioned.
Moneylife earlier wrote, Crazy about “corporate governance norms”, SEBI is blind about Geodesic . The shareholders of Geodesic have already lost their value as its share price is around Rs3 and BSE transferred it to 'T' (Trading Settlement) group. While many shareholders who complained to Securities Exchange Board of India (SEBI) about the company, the market regulator, so far, has failed to take any action against Geodesic and its promoters.
Geodesic closed Friday 3.4% at Rs1.99 on the BSE while the 30-share benchmark Sensex ended 1% down at 25,329.
If Nifty does not go below 7,540, the index would rally
As we mentioned in Thursday’s closing report, the Indian market saw a major move in the downward direction on Friday. The pessimism on the Indian bourses was in line with the performance of most of the Asian indices, which fell as US President Barack Obama authorised air strikes in Iraq.
Today the Indian indices opened much lower and remained in the same range for the entire session. The S&P BSE Sensex opened at 25,407 while NSE's 50-share CNX Nifty opened at 7,589. Sensex moved in the range of 25,233 and 25,407 and closed at 25,329 (down 260 points or 1.02%). Nifty also moved between 7,540 and 7,592 before closing at 7,569 (down 81 points or 1.06%). NSE recorded a volume of 72.86 crore shares. India VIX rose 3.40% to close at 14.6175.
Monsoon rainfall was reportedly 18% above average in the past week after rainfall of 9% below average in the previous week.
Gold prices again crossed the Rs29,000-mark to hit over two-month high by rising Rs300 to Rs29,100 per 10 gram. The rising physical demand in view of the festive season and depreciating rupee could be the reasons for the surge in price of the precious metal.
Domestic car sales in July rose an annual 5% to 1.37 lakh units in July this year as compared to 1.31 lakh units same month of 2013, SIAM data showed. Car sales are expected to grow between 5% and 10% this fiscal year, Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (SIAM), said on Friday. Total two-wheeler sales in July 2014 grew 13.73% to 12.87 lakh units from 11.32 lakh units in the same period last year. Total sales of vehicles across categories rose 12% to 15.86 lakh units in July 2014 as against 14.16 lakh units in the same month of 2013, it added.
Bharti Infratel (2.25%) and Bharti Airtel (2.09%) were among the top three gainers in the ‘A’ group on the BSE. Bharti Airtel sold 4.5% stake in Bharti Infratel raising close to Rs 2,140 crore. This step would allow it to comply with a regulation on minimum public holding and generate funds which it could use to pare debt. Bharti Airtel was also the top gainer in Sensex 30 pack.
State-run BHEL (3.74%) was among the top three losers in the Sensex 30 stock.
Government has identified three sick PSUs namely, Praga Tools Ltd, Bharat Heavy Plates Vessels and Bharat Refractories which will be either merged or taken over by SAIL, BHEL and HMT.
Bhushan Steel, remained the major loser today as well. The company vice chairman, Neeraj Singhal, was arrested on Thursday in the Syndicate Bank bribery. Bharat Steel fell 9.99% on Friday, to remain top loser in the ‘A’ group on the BSE.
US indices fell on Thursday. US President Barack Obama said he had authorised air strikes on Iraq and humanitarian supply drops to prevent "genocide" by Islamist extremists against minorities. The president said US warplanes could also target Islamic State militants if they advance on the city of Arbil, where the US has a diplomatic presence and advisors to Iraqi forces.
Except for Shanghai Composite (0.31%) all the other trading Asian indices closed in the red. Nikkei 225 (2.98%) was the top loser. China's trade surplus surged to a record in July as export growth unexpectedly accelerated and imports fell, suggesting global demand will help the government achieve its 2014 economic-expansion goal of about 7.5%. Overseas shipments increased 14.5% from a year earlier, the Beijing-based customs administration said today.
Imports dropped 1.6%, leaving a trade surplus of $47.3 billion, bigger than estimates.
European indices were trading lower, while US premarket Futures were trading marginally in the green. The European Central Bank (ECB) left interest rates unchanged on Thursday, 7 August 2014. The Bank of England (BoE) also left interest rates unchanged on Thursday. The BoE has kept interest rates on hold for the 65th consecutive month. The bank also kept the size of the Bank's economic stimulus programme, known as quantitative easing, unchanged at £375 billion.
The market regulator found 10,528 investors to have been offered unauthorised investment plan by MP-based HNC Infrastructures
Clamping down on an illegal scheme assuring high returns to investors for investment in land, market regulator Securities and Exchange Board of India (SEBI) has barred Madhya Pradesh-based HNC Infrastructures & Shares India Ltd and its four directors from raising any funds from public as well as from floating any new schemes.
Based on its preliminary findings into the scheme by HNC Infrastructures, SEBI found that the Madhya Pradesh-based company was running a 'collective investment scheme' (CIS) without requisite approvals and registration from the market regulator.
According to SEBI order, as many as 10,528 investors were found to have been offered the unauthorised investment plan by HNC Infrastructures.
Noting that immediate steps were required to prevent activities of entities from defrauding investors, SEBI has ordered HNC Infrastructures and its four promoters/directors "not to collect any fresh money from investors by its existing scheme" and "not to launch any new scheme/plan or float any new companies to raise fresh moneys"
Besides, SEBI has asked HNC and its promoters/directors not to dispose of any of the properties or alienate the assets of the existing scheme as well as not to divert any funds raised from public.
Moreover, they have been asked "to immediately" submit the full inventory of the assets owned by the company out of the amounts collected from the investors and to furnish all the information sought by SEBI such as sample copies of the documents and contracts executed with the investors for the purpose of the scheme.
The directions in the order have come into force with immediate effect, SEBI said.
The market watchdog had begun a probe into the matter after it had received a complaint on 28 November 2013, regarding the fund raising activity of the company.
SEBI observed that "the fund mobilising activity of HNC, promising an estimated returns/profit, has been camouflaged by HNC by way of a booking of land /plots for development, only to mislead and attract investment from the general public".
It added that "HNC is prima facie engaged in fund mobilising activity from the public, by floating/sponsoring/ launching 'collective investment scheme'... without obtaining a certificate of registration from SEBI as required".