This is a new thing i am trying to start where i try to review the Promoter and Promoter Group
Usually we check fundamentals but always forget to check who the promoter was and what exactly he does .
This is just a snippet of the analysis i made on senco gold and its promoter
So Suvankar sen is the Individual Promoter followed by:
Jai Hanuman Shri Siddhivinayak Trust which was constituted pursuant to a trust deed dated January 31, 2017. As on the date of this Draft Red Herring Prospectus, the Jai Hanuman Shri Siddhivinayak Trust (acting through its trustees, Suvankar Sen and Joita Sen) holds 34,436,529 Equity Shares, representing 61.66% total paid up equity share of the capital.
Om Gaan Ganpataye Bajrangbali Trustwhich was constituted pursuant to a trust deed dated January 31, 2017. As on the date of this Draft Red Herring Prospectus, the Om Gaan Ganpataye Bajrangbali Trust (acting through its trustees, Suvankar Sen) holds 5,334,246 Equity Shares, representing 9.55 % of the total paid up capital of the Company.
To summarize the promoter holds 66% of the total paid up equity capital of the company through himself and the trust where he is the only trustee along with his wife.
Criminal Proceedings against the company
In January 2017, the company received a letter from the Additional Director of Income Tax (ADIT), stating that the company was under investigation for potential prosecution under Section 277A of the IT Act.
The allegations made against the company were as follows: (a) engaging in business transactions involving illegal tender currency, (b) attempting to conceal the identities of cash buyers/carriers by splitting advance vouchers in values below ₹200,000, (c) being involved in the conversion of unaccounted cash into gold, and (d) failing to provide evidence of sales against the advances taken, implying unaccounted cash credits. The case had hearings in June 2018 and February 2022, with the Judicial Magistrate adjourning the matter due to non-production of required paperwork by the complainant. The case is currently pending before the Judicial Magistrate.
After the demonetization of ₹500 and ₹1,000 banknotes in November 2016, the Income Tax Department (ITD) conducted searches and seizures at various locations associated with the company. These included manufacturing facilities, company-operated showrooms, the residence of the individual promoter, and franchisee showrooms. During the searches, cash, jewelry, precious metal inventories, and documents were found and noted by the ITD.
At the company’s factory in Kolkata, gold bars were seized, and the company has made petitions for their release. Prohibitory orders were issued, temporarily suspending operations of certain bank accounts and lockers of the individual promoter. However, these orders were later withdrawn.
As a result of the search and seizure actions, the company received notices for block assessment under Section 153A of the IT Act. The company responded to these notices and provided the required information and documents.
Additionally, the company received assessment orders for various assessment years, and appeals were filed with the Commissioner of Income-tax. Rectification orders were received for some years, while the appeal for one assessment year was allowed by the Income Tax Appellate Tribunal. A new assessment order granting a refund was received for another assessment year.
The company also received summons, notices, and reminders for providing information and documents related to the purchases made on November 8, 2016, and a notice for re-assessment of income for a specific assessment year.
The matter is currently pending before the relevant authorities, and the company has been actively responding and engaging in the necessary legal procedures to address the issues raised by the Income Tax Department.
Case Filed against promoter for manipulation
Trina Deb has filed a case against the MD and CEO, Suvankar Sen, at the District Consumer Disputes Redressal Forum in Jalpaiguri. The complaint alleges that the showroom manager at the Jalpaiguri showroom manipulated and failed to verify the purity of gold items brought in by Trina Deb for exchange before melting them. The case is currently under review by the District Consumer Disputes Redressal Forum in Jalpaiguri.
Link to the article
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