Regulators sleeping in their ivory towers, the company’s share price has rocketed a humungous 270% between 17 January 2013 and 6 December 2013, from Rs11 to Rs40.65.
According to the BSE’s website, Kailash Auto is supposedly into ‘miscellaneous commercial services’ whatever that means. It has flouted listing norms, for which it got suspended by the 
BSE in February 2009, as well as shareholding disclosure and corporate governance norms.
Strangely, in March 2009, just a little over a month after the company was suspended, BSE revoked the suspension. The auditors’ report of 2011-12 noted that accumulated losses exceeded half of the company’s net worth. During the past four quarters, from December 2012 to September 2013, Kailash Auto reported erratic net sales of nil, Rs34 lakh, Rs16 lakh and Rs20 lakh, respectively. Its net profits for the same quarters were even more erratic, starting with a net loss of Rs73,000, followed by net profits of Rs9 lakh, Rs2 lakh and Rs9 lakh. But, with the regulators sleeping in their ivory towers, the company’s share price has rocketed a humungous 270% between 17 January 2013 and 6 December 2013, from Rs11 to Rs40.65.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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