Ahmedabad-based Padmanabh Industries, formerly known as Nilchem Industries Limited, is a chemicals trading company. For the quarter ended December 2016, the company reported no sales and net loss of Rs3 lakh. This wasn’t the first quarter in which there were no sales; it has reported no sales consistently from March 2014 to December 2015 quarter and showed sales of Rs31 lakh, Rs3 lakh and Rs1 lakh in March 2016, June 2016 and September 2016 quarters, respectively. Padmanabh has been reporting losses since FY10-11, except in FY13-14, when it reported no profit and no loss.
The company’s reserves stand at a negative Rs20 lakh, while the share capital is Rs4.58 crore. The promoters hold only 2.94% of the total shares. However, an examination of public shareholding shows that shares are held by the promoters and their family, but are just not listed under promoter shareholding.
The stock was suspended from trading on the BSE from 27 August 2015 due to penal reasons. However, on submissions and representations made by the company, on 29 January 2016, the BSE revoked its suspension and trading started from 3 February 2016. Despite there being no business, no revenues and incurring losses, the share of the company rose by 2034%, to Rs62.3 on 6 March 2017, from Rs2.92 on 13 October 2014. Will SEBI care to investigate?