Was shocked to hear this morning on CNBC 18,Executive Chairman of Jaiprakash Associates,Manoj Gaur,confessing he was not aware of the Debt to Equity quotient in his Company ! On earlier being asked as to how much cash was there on the Books,he quickly stated “Rs 1500 crs”
Mr Gaur,who’s running your Company if you’re not !?
Mr Gaur,you are the Promoter’s son entrusted with running the Group and it does not bore well for those stakeholders who are riding with you, that you are not aware of the Financial leverage in your company in these credit contraction times !
You now want to explore Merger of your Power Companies…earlier you wanted seperate IPOs for them…Thank God your IPOs did not take place…they would have obviously come at high obscene premiums in bullish times and made suckers of Investors
Yes, you boast of building Assets of National Importance and achieving a Turnover of Rs 10000 crores in the watershed year of 2010…but at whose cost !…ask your shareholders !…it’s one thing to preach,like you do,that you follow three principles,that whatever you do should add value and serve your bankers,clients,employees and satisfy shareholders…it’s another to put this into practice !
One more piece of sincere advice for you,Mr Gaur…just stop claiming you’re a responsible Corporate Citizen..action speak louder then words…just recall how you cornered Rights Shares in the 1990s,denying allotments to genuine shareholders on flimsy pretexts…or how you allowed a large number of Imported cars to be parked at your Jaypee Greens Complex,hidden from all, when the scandal broke out of how Such Cars were imported to ostensibly serve Tourism Needs and hence were not subject to High Import Duties,but were actually diverted for personal use by a host of Influential People
Markets have been unforgiving to you,Mr Gaur…..your Company’s share price has dropped over 90% in 2008 and is at Rs 68 today….Rs One Lakh invested in your Company in January 2008 is now down to below Rs 10000 inside a year ! The share Price will have to recover by over 1000 %,miracle if this happens, to recoup the loss…. Does this not tell you a stark fact !?…that shareholders dumped self serving promoter and manipulated scrips…now,don’t go blaming all the fall on deteriorating market conditions !