FAQ

It is not true to state that there are 102 subsidiary companies as alleged. The details of subsidiaries in India and abroad have been fully disclosed in the annual reports as per the provisions of Companies Act, 2013, listing norms and SEBI Regulations and these annual reports available in the public domain. In addition to the subsidiaries mentioned above, the details of the investee companies in the group are regularly disclosed to the Stock Exchanges and in our Annual Reports in compliance with the listing norms.

It is ironic to allege that when the Promoter Group, on the other hand brought in funds by way of locked-in investments at a very high premium in order to meet the lender’s terms and other liquidity requirements, that the promoter is using the funds for personal purposes. Any one is free to check the IT / WT returns and the disclosures made to the stock exchanges, filed by the promoter group, to ascertain the above. When a responsible channel airs such views, it should come with facts substantiating its claims – but not making a generalized statement just to crate sensation.

Corporate Guarantees   were given by the Companies of Sujana Group on behalf of their overseas  subsidiaries to foreign banks/lenders  In conformity with the RBI and FEMA regulations / guidelines.There was never a violation of FEMA, or for that matter, any statute. The overseas subsidiaries conduct business operations in their respective business countries of operation. Any loans raised by them based on the corporate guarantees given by the parent company, was used for business operations in their countries and these funds were not used by the parent company.

The total liability of the Group (SUIL, STL and SMPL) to banks &FIs is around Rs.4268 Crores as on 31.3.2014. Hence, it is not proper to mislead with pubic with the incorrect figures in the TV Telecast. The Group has generally not defaulted in its repayment or debt service obligations.

TOTAL  BANK LIABILITIES			Rs. Cr.,
	SUIL	SMPL	STL
	31.3.2014	31.3.2014	31.3.2014
TERM LOANS (A)	64.33	979.82	845.58
WORKING CAPITAL LOANS
cash credit	380.01	632.82	598.54
Letters of Credits	239.16	168.25	100.01
SBLC facility/BG	159.46	0.00	100.01
TOTAL (B)	778.63	801.07	798.56
GRAND TOTAL (A+B)	842.96	1780.89	1644.14

Since inception the Sujana Group  had been carrying on the business in India and abroad and paying the relevant taxes as per the APGST and CST Acts and other relevant acts / laws wherever applicable.

The Sujana Group had been regularly filing the monthly and annual sales taxes returns and any other applivable reports and paying the taxes due to the Commercial Taxes Department as required under the Acts.

The Sujana group has come to its present state after struggling hard continuously and running the business efficiently with dedicated and devoted professionals / employees coupled with innovation and perfection and firm commitment to meet the needs of the customers.

The Sujana group has been adopting high standards of corporate governance which is evident from the disclosures made periodically in quarterly returns, publications annual reports.

The Sujana group has come to its present state after struggling hard continuously and running the business efficiently with dedicated and devoted professionals / employees coupled with innovation and perfection and firm commitment to meet the needs of the customers.

The Sujana group has been adopting high standards of corporate governance which is evident from the disclosures made periodically in quarterly returns, publications annual reports.

It may be noted that this entity and  or any other of their related entities are never part of Sujana Group and there is no common shareholding and directorship or employees between Sujana Group and Best and Crompton.  Best nd Crompton is an 100 years old company and grown up on its with its strengths. Mr. Chowdary never dealt with any business related aspects of any other entity.  During his life as entrepreneur and as a politician, a lot of entrepreneurs used to approach him for advice / suggestions to run their business enterprises on advisory basis.   There is no economic interest in any other entities than Sujana Group and he relinquished his economic interest even in Sujana Group after 2014 in order to comply with the Government of India Regulations and also to be in public service.  His suggestion or advice is merely as a mentor in industry and business and not in his personal capacity. There is no complaint against him from any of the regulatories during the entire life.

This is not correct as the Group has not declared any dividends since

2000-2001 and all the dividends declared till the above financial year were

paid off.

This is not true and group always discloses the details of the inter company transactions in its annual reports and filings. Moreover, this is a requirement under the IT Act, too. Therefore, this allegation falls on its feet.

The author of this missive seems to have been possessed by sole intention of maligning Sri Y S Chowdary, a visionary industrialist, who has, with his devotion and dedication from the past three decades, created valuable companies contributing to the economy of the country and providing direct and indirect employment to over 10000 persons; and his yeomen service to the society through Sujana Foundation by way of providing tertiary health care to many people at a nominal cost.

It is proven beyond doubt for the past 29 years EBIDTA is either in line with the industry norms or better than the norms and is sufficient to meet the debt servicing obligations of the group. As far as the bank loans are concerned, every business entity needs capital in the form of equity and loans from the lending entities; banks and financial institutions had played an important role in growth of these companies along with the promoters.

The allegation is completely false and without basis. While denying the observation that private properties have been brought with loan funds, we state that the Group Companies utilized the entire amount of loans obtained from the banks and their own funds as promoters equity,  for the Group’s business activities in different locations spread over the country.

These guarantees are issued in accordance with the RBI guidelines and the group regularly files the annual returns with the RBI pertaining to these obligations.

It is false and untrue to state that the Group has evaded taxes to a large extent.  Wherever undisputed tax liabilities as assessed by the Tax Departments, the taxes have been paid. Some of the tax claims are disputed by these companies on the ground that they are not payable and they have appealed against such tax claims. These appeals are pending with various appellate authorities/ High Courts. Status of the disputed tax claims is given in the annexure.   Status of the disputed tax claims is reported quarterly to the Board and is also disclosed in the audited balance sheets.

Over the period of 32 years, the Group companies, through their operations contributed Rs.5800 Crores to the Central Exchequer by way of excise and customs duties, income tax, to the State Exchequer by way of tax /VAT and electrical power charges, by way of interest and financial charges to the banks and FIs. In addition to the above, the Group has also paid fee and other charges for increase of capital, listing, custodian fee etc. Provided employment for around 6000 employees. The operations of all the three listed companies of the Group, operating in the steel and power & telecom infra sectors, severely suffered due to recession in these sectors since the year 2008-09 which is national as well as global phenomenon and not specific to the Group. It is very well known that majority of the companies in steel in infra sectors incl. large companies like Tata Steel, Essar Steel, JSW Steel, GMR Infra, Jyoti Structures and others have been incurring heavy operational losses since last 3 years and all the large players in the sector are struggling to stay afloat, Infact the combined exposure of the stated large companies in the sector currently running into several lakhs of crores. Thus the stress in cash flows are not specific to this Group and it’s a sector problem.   In this regard the Group worked out  with the Lenders to identify new  investors with possible change in management which is indeed the suggested route under the current lending guidelines (SDR)  from RBI to deal with such stressed companies and again this is a national policy and applied to many in the sector and not specific to group. As the companies have large assets and built-in capacities, some investors have evinced interest in acquiring controlling stake and invest further amounts to revive the operations.  During the process, two companies  ie., Splendid Metal Products Limited and Neueon Towers Ltd were referred to CDR which was. not successful because of delayed / no disbursements from the Lenders. Subsequently, during the year 2019, the all the three  Companies were referred to Honourable NCLT, Hyderabad  by the lenders for a resolution plan under IBC.  Resolution plans of two companies Splendid Metal Products Limited and Sujana Universal Industries Limited was approved by Honourable NCLT Hyderabad and the resolution plans are being successfully implemented by the new management. Neueon Towers Limited was order for liquidation under the relevant provisions of IBC.

Answer: There is no violation of any statutory regulations in accordance with Companies Act, 1956/2013, SEBI RBI/FEMA or Tax Laws or any other applicable legal provisions. Indian Penal Code / Prevention of Corruption Act, 1988 / Money Laundering Act are not relevant / applicable to the Company/Group. Sujana has not violated any legal and statutory requirements RBI/FEMA regulations. Further there is no complaint from the Bank in any of the Group Companies founded by Sri YS Chowdary.

A. Sujana Companies never did any fraud or misrepresentation to the Banks or to the general public or to any statutory authority whereas the Investigating Agencies are alleging as such and prompting the media to publish the wrong/ halftruth information about Sri Y S Chowary connecting with Sujana Group even after his total disassociation with Sujana Group since 2014.

B. Subsequently, charge sheet was filed by the ED against Mr. Y S Chowdary and his officers with a false allegation of guiding, instructing and giving directions to M/s Best and Crompton Engineering Projects Limited and its directors which is a baseless allegation and misleading all other statutory authorities, Banks and FIs and the general public. This is being challenged for quashing the charge sheet.

Answer: There is no violation of any statutory regulations in accordance with Companies Act, 1956/2013, SEBI RBI/FEMA or Tax Laws or any other applicable legal provisions. Indian Penal Code / Prevention of Corruption Act, 1988 / Money Laundering Act are not relevant / applicable to the Company/Group. Sujana has not violated any legal and statutory requirements RBI/FEMA regulations. Further there is no complaint from the Bank in any of the Group Companies founded by Sri YS Chowdary.

A. Sujana Companies never did any fraud or misrepresentation to the Banks or to the general public or to any statutory authority whereas the Investigating Agencies are alleging as such and prompting the media to publish the wrong/ halftruth information about Sri Y S Chowary connecting with Sujana Group even after his total disassociation with Sujana Group since 2014.

B. Subsequently, charge sheet was filed by the ED against Mr. Y S Chowdary and his officers with a false allegation of guiding, instructing and giving directions to M/s Best and Crompton Engineering Projects Limited and its directors which is a baseless allegation and misleading all other statutory authorities, Banks and FIs and the general public. This is being challenged for quashing the charge sheet.

The Sujana Group consists of three listed companies M/s Sujana Universal Industries Limited, M/s  Splendid Metal Products Limited (previously known as M/s Sujana Steels Limited and M/s Sujana Metal Products Limited) and M/s Neueon  Towers Limited (previously known as M/s Sujana Towers Limited).

Every Company in the Sujana Group is managed by an independent & competent Board of Directors consisting of majority of independent directors of eminence and maintains highest standard of Corporate Governance. The Companies in the Sujana Group complied with all the provisions of disclosure to the stock exchanges regarding corporate governance.  Over the period of 32 years, different eminent persons have been on the Board of Directors of these Companies in different periods, in various categories such as independent directors, nominee directors from the Banks and FIs, professional directors apart from promoter directors which may be seen from the following table:

1. Nominee Directors:

Name of the Company	Name of the director/ Institution	Period
Splendid Metal Products Ltd	Sri K Srinivasa Rao (IREDA nominee) Worked in different capacitites in State Bank of India and State Bank of Hyderabad including as Finance Director.	28.01.2000 to 2005-06
	Sri K.P.Ramakrishnan (IDBI nominee)	30.10.2000 to 19.04.2002
	Sri Sunil Kapoor (IFCI nominee)	27.09.2001 to 27.01.2004
	Sri Y.M.Yesaw (IDBI nominee)	19.04.2002 to 29.04.2005
	Sri Y.V.Ramesh Naidu (IFCI nominee)	29.09.2004 to 29.06.2005
	Sri S.Ramachandran (IDBI nominee)	29.12.2008 to 14.05.2010
	Sri Ashok Kumar De (IDBI nominee)	14.05.2010 to 30.05.2014
	Sri Ch.Srinivasu (IDBI nominee)	30.05.2014 to 11.12.2017
	Sri Vimlesh Kumar (PNB nominee)	28.08.2014 to 14.12.2016
	Sri Ram Kumar (PNB nominee)	14.12.2016 to 18.05.2018
	Sri Venkata Krishnan (IDBI nominee)	11.12.2017 to 18.09.2018
	Sri Nitil Pandya (PNB nominee)	18/05/2018 to 27.09.2019
Neueon Towers Ltd	Sri Anil Ratanpal (IDBI nominee)	10.02.2011 to 14.08.2013
	Sri Hiranmoy Biswas (IDBI nominee)	14.08.2013 to 22.08.2015
	Sri Yashpal Gupta (IDBI nominee)	14.11.2015 to 13.02.2017
	Sri Saravanan Muthu (IDBI nominee)	14.02.2017 to 18.09.2018
Sujana Universal Industries Ltd	Sri G Jagadish Prasad (IFCI nominee)	28.06.1997 to 28.01.1999
	Sri D.Rama Rao (IFCI nominee)	28.01.1999 to 29.10.1999
	Sri Sunil Kapoor (IFCI nominee)	29.10.1999 to 30.01.2003
	Sri Vidyabhushan Chadha (IREDA nominee)	28.01.2000 to 29.11.2001
	Sri G.S.Srinivasan (IDBI nominee)	28.01.2000 to 24.10.2003
	Sri R.S.Sandhu (IFCI nominee)	30.01.2003 to 29.04.2004
	Sri R.R.Chkrawarti (IDBI nominee)	24.10.2003 to 29.04.2005
	Sri V.S.V.Rao (IFCI nominee)	29.04.2004 to 09.06.2005
	Sri B.P.Mandal (IFCI nominee)	18.04.2007 to 10.12.2008
	Sri Narayandas Áuddy (IFCI nominee)	30.07.2007 to 28.04.2008
	Sri V.Udhaya Sankar (IFCI nominee)	28.04.2008 to 31.07.2009
	Sri S.Ramachandran (IDBI nominee)	10.12.2008 to 14.05.2010
	Sri D.Rama Rao (IDBI nominee)	29.12.2009 to 14.05.2010
	Sri Ashok Kumar De (IDBI nominee)	14.05.2010 to 30.05.2014
	Sri Ch.Srinivasu (IDBI nominee)	30.05.2014 to 11.12.2017
	Sri Venkata Krishnan (IDBI nominee)	11.12.2017 to 18.09.2018

1. Professional Directors

Sl.No.	Name of the Director	Period of Directorship	Specialisation
01.	Late Sri HS Mazumdar	29-10-1988 to 28-06-1997	Former Dy Managing Director of State Bank of India
02.	Late Sri Sri PS Vaidya	16-08-1989 to 28-05-1998	Former Dy Managing Director of State Bank of India and Managing Director of State Bank of Hyderabad.
03.	Late Sri KS Purohit	28-03-1991 to 15-02-1993	Former Chief General Manager of State Bank of India. Hyderabad Circle,
04.	Late Sri VB Chadha	24-07-95 to 29-01-2005	Former Senior Banking Professional  holding different senior positions in State Bank of Hyderabad.
05.	Late Dr  V Malakonda Reddy	05-05-1992 to 30-05-2018	Former Professor and Head of Civil Engineering, Regional Engineering College, Warangal. And Principal and Secretary of Chaitanya Bharathi Institute of Technology, Hyderabad
06.	Dr K Srinivasa Rao	30-07-1998 still continuing	Former Finance Director of State Bank of Hyderabad.
07.	Late Sri MV Narayana Rao	16-08-1989 to 23-11-1998	Former Director General of Police, Govt of Andhra Pradesh
08.	Sri MV Bhaskara Rao	03-09-2007 still continuing	Former Director General of Police, AP Hyderabad
09.	Sri NR Ganti	19-07-1999 to 21-10-2002	Former Senior Credit Analyst in State Bank of India.
10.	Sri S Venkatachalam	28-07-2008 to 14-11-2011	Graduate Engineer  and worked in various leading business houses like MN Dastur & Co., Lloyd Steel Industries etc, in senior positions.
11.	Sri N Srikrishna	28-01-2008 to 23-01-2012	Chartered Accountant and Transaction Advisory Partner- Brahmaiah & Co
12.	Sri VSR Murthy,	03-09-2007 to 29-01-2009	Former Executive Director of Dhanalakshmi Bank.
13.	Late Sri NDKA Reddy	25-07-1995 to 17-05-2003	Central Govt Official in Information Dept
14.	Sri K. Kameswara Rao	30-01-2006 to 01-09-2009	Senior Banking Professional
15.	Sri RK Birla	05-05-1992  still continuing	Former Chief Executive of Poddar Projects Limited and having experience in steel industry
16.	Sri Y Kamesh	29-07-2009 to 27-05-2015	Industrialist and management expert
17.	Sri B Ramachandra Rao	30-01-2006 to 01-09-2009	Former Chief General, SBI and Also Chief General Manager and Principal, State Bank Staff College.
18.	Smt P Shyamala Reddy	27-08-2016 to 29-06-2017	Management Sciences
19.	Smt B SandhyaSri	30-03-2015 to 30-05-2016	Former Director, Planning Departments, Department of Andhra Pradesh
20.	Smt G Umadevi	13-10-2017 still continuing	Post Graduate in Social Works and working human development activities
21.	Sri P Krishna Rao	09-08-2006 to 23-11-1998	Senior Banking Professional
22.	Sri SR Narayanan	24-07-1995 to 18-05-2000	Former Principal Collector, Customs and Central Excise.
23.	Late Sri J Ramakrishnan	24-07-1995 to 14-11-2017	Former Chief Commissioner of Customs and Central Excise, Hyderabad Zone
24.	Sri AS Anand Kumar	28-04-207	Banking, Finance and management
25.	Sri K. Raghavaiah	29-12-2008 to 28-05-2012	Former Managing director of BHPV and also worked with BHEL
26.	Sri L V Rao	27-09-2009 still continuing	Retd Executive Director in  BHEL
27.	Sri S Hanumantha Rao	19-07-1999 still continuing	Senior Banking professional and ICWAI

 

The Board of Directors of Sujana Companies are assisted by the Corporate Professionals such as Sri B Ramachander Rao, CA, ICWAI, FCS, LLB, Sri KPC Rao, ICAWI, FCS and LLB, Sri JS Rao, CA, Sri VV Chenulu, CA, Sri Sudhanshu B Chadha, CA,  Sri SS Sastry, Late Sri N Dayasagar, CA, Sri NC Krishna, CA, Sri P. Apser Hussen, FCS, LLB and ACIS, Sri Ch Narayana Rao, CA, Smt S Kalyani, Sri B Manoharan, Sri Rengarajan, Sri NS Ayyangar, Sri Y Ravi Sekhar, Sri MSN Murthy,  in different periods.

No investor complaint is pending with any of the regulatory authorities such as stock exchanges, SEBI, ROC, CLB/NCLT and Ministry of  Corporate Affairs against the Group.  The   Listed companies in the Group have been publishing unaudited financial results, submitting shareholding patterns, corporate governance reports and all other applicable returns periodically or quarterly to the stock exchanges wherein the details as to the promoters’ shareholding, status of investor complaints are also routinely  included. The Sujana Group complied with all the provisions of Income Tax Act, 1961 excepting the disputed tax claims by the IT Department due to interpretational issues or which Companies have preferred appeals to appropriate authorities.

It can be seen from the shareholding pattern of the Group companies for all the past years, that the promoters never sold their shares to make money and never took advantage of the price movements of its shares in the bourses.

Sujana Group has never done any business amongst its own Group companies. This is  Group always discloses the details of the inter company transactions /related party transactions in its annual reports and staturory filings. Moreover, this is a requirement under the IT Act.

1. There is no possibility of any wrong doing by the Group’s entities since financial assistance extended by the banks for the business operations of the Group’s companies are always subject to appointment of nominee directors of the lenders on the boards of these companies in order have superintendance on the affairs the borrowing company and to oversee the operations at a macro level; and in view of the continuous and regular conduct of concurrent audit,  receivables audit & secretarial audit by the well reputed accounting firms appointed by the lending banks in addition to the internal audits and statutory audit by  independent auditors. The outcome of these audits is tabled and discussed in depth internally and by various committees of the Board, every quarter after quarter and are well documented. In general, all the loans taken by the Group from  banks and financial institutions are fully secured.

1. There are independent board of directors and promoters are not involved in day-to-day activities. They are involved in policy making and mentorship.Every Company in the Sujana Group is managed by an independent & competent Board of Directors consisting of majority of independent directors of eminence and maintains highest standard of Corporate Governance. The Companies in the Sujana Group complied with all the provisions of disclosure to the stock exchanges regarding corporate governance.  Over the period of 32 years, different eminent persons have been on the Board of Directors of these Companies in different periods, in various categories such as independent directors, nominee directors from the Banks and FIs, professional directors apart from promoter directors.

It is essential to note that even though Sri Y S Chowdary being the “founder” and the gale force behind the  ventures of the Group, did not participate in the day to day management of the Group after the first few formative years (Upto 2000); Shri YSC resigned from the position of  Managing Director in 2000 from Sujana Universal Industries Ltd, in 2003 from  Splendid Metal Products Limited and he was ordinary director  in Sujana Towers Ltd. No holding of office of profit / place of profit and acted as Non  Executive Chairman since the date of resignation as stated above till August 2014. Since 2003, he was holding only non executive positions  in three  listed entities  of Sujana Group  namely, Sujana Universal Industries Limited, Splendid Metal Products Limited and Neueon Towers Limited with no powers of management of the Companies till October 2014.

It is further to mention that  he was not holding any executive or non executive positions in any corporate entity since October 2014 including the above three listed entities. He resigned as Director from October 2014 from all corporate entities and since then, he does not   hold any directorship in any corporate entity. Subsequently, his shareholding have been cancelled in the Resolution plans approved by Honourable NCLT, Hyderabad.

There is no possibility of any wrong doing by the Group’s entities since financial assistance extended by the banks for the business operations of the Group’s companies are always subject to appointment of nominee directors of the lenders on the boards of these companies in order have superintendence on the affairs the borrowing company and to oversee the operations at a macro level; and in view of the continuous and regular conduct of concurrent audit,  receivables audit & secretarial audit by the well reputed accounting firms appointed by the lending banks in addition to the internal audits and statutory audit by  independent auditors. The outcome of these audits is tabled and discussed in depth internally and by various committees of the Board, every quarter after quarter and are well documented. In general, all the loans taken by the Group from banks and financial institutions are fully secured.

However, Mr. Chowdary provided his personal guarantees to the Banks and FIs as part of security to the financial assistance provided to the above listed companies.  The Banks have invoked the personal guarantee and proceeded to recover the monies lent to the Companies as per the provisions of IBC Laws and they are being settled with the Banks and FIs. Exceting as stated in this answer and as stated above, no case/litigation/disciplinary action/charge sheet is pending against Mr. YS Chowdary.   CBI also summoned Mr. YS Chowdary and the officers in Sujana Group which were attended promptly and cooperated for their investigation and no charge sheet is filed by CBI.

Yes , to three major group companies that are Splendid metal products limited , Sujana universal, Neueon towers limited.

Yes and The Banks have invoked the personal guarantee and proceeded to recover the monies lent to the Companies as per the provisions of IBC Laws and they are being settled with the Banks and FIs. Excepting as stated in this answer and as stated above, no case/litigation/disciplinary action/charge sheet is pending against Mr. YS Chowdary.   CBI also summoned Mr. YS Chowdary and the officers in Sujana Group which were attended promptly and cooperated for their investigation and no charge sheet is filed by CBI.

Answer: The Group has paid taxes wherever undisputed tax liabilities as assessed by the Tax Department. Some of the tax claims are disputed by these companies on the ground that they are not payable and they have appealed against such tax claims. These appeals are pending with various appellate authorities/ High Courts. Status of the disputed tax claims is reported quarterly to the Board and is also disclosed in the audited balance sheets every year.

Answer: It may be added further it is not uncommon for a business house with such a long existence to have disputed tax claims; large private sector companies like Infosys, Tata Steel, MNCs like Vodafone, public sector companies like SBI also have disputed tax claims from various authorities and preferred appeals against such claims. The disputes are with regard to interpretation of tax laws and such disputed tax matters are fully reported in the Annual Reports of the Companies.

It is to state with emphasis that the Group Companies utilized the entire amount of loans obtained from the banks for the Group’s business activities in different locations spread over the country.

Sujana  Companies never did any fraud or misrepresentation to the Banks or to the general public or  to any statutory authority whereas the Investigating Agencies are alleging as such and prompting the media to publish the wrong/ half-truth information about Sri Y S Chowdary connecting with Sujana Group even after his total disassociation with Sujana Group since 2014.

Sujana  Companies never did any fraud or misrepresentation to the Banks or to the general public or  to any statutory authority whereas the Investigating Agencies are alleging as such and prompting the media to publish the wrong/ half-truth information about Sri Y S Chowdary connecting with Sujana Group even after his total disassociation with Sujana Group since 2014.

During the year October 2018, searches were conducted by Enforcement Dirctorate on the premises of Sujana Group Companies without any authority.  ED came for searching one of the investors of M/s Best and Crompton Engineering Projects Limited, Chennai and ED officials started searching Sujana Companies records.  M/s Bhagyanagar Investments and Trading Private Limited was one of the investors of M/s Best and Crompton and Sujana Group Companies are in the same building premises with proper name boards for each of the Companies. Subsequent to their searches, ED called the officers of Sujana Companies and forced them to implicate Sri Y S Chowdary alleging that the Best and Crompton and Sujana Group are under the control of Sri Y S Cwhodary and Best & Crompton is part of Sujana Group.  ED also informed CBI and made them to conduct enquiry against Sujana Group and Offices of Sujana Group. M/s Best and Crompton Engineering Projects Limited is never part of the Sujana Group.  There is no common directors / shareholding.  The Companies in Sujana Group and M/s BCEPL & other companies mentioned and as alleged by  ED and CBI  were never the companies under the same group and under the same management and also not associated companies as defined in the Companies Act, 1956 / 2013.  The Investigating Agencies also alleged that Sujana Group Companies and Best and Crompton are friendly  companies which is never defined in their Complaint nor in any of the enactments.

During the year October 2018, searches were conducted by Enforcement Dirctorate on the premises of Sujana Group Companies without any authority. ED came for searching one of the investors of M/s Best and Crompton Engineering Projects Limited, Chennai and ED officials started searching Sujana Companies records. M/s Bhagyanagar Investments and Trading Private Limited was one of the investors of M/s Best and Crompton and Sujana Group Companies are in the same building premises with proper name boards for each of the Companies. Subsequent to their searches, ED called the officers of Sujana Companies and forced them to implicate Sri Y S Chowdary alleging that the Best and Crompton and Sujana Group are under the control of Sri Y S Cwhodary and Best & Crompton is part of Sujana Group. ED also informed CBI and made them to conduct enquiry against Sujana Group and Offices of Sujana Group. M/s Best and Crompton Engineering Projects Limited is never part of the Sujana Group. There is no common directors / shareholding. The Companies in Sujana Group and M/s BCEPL & other companies mentioned and as alleged by ED and CBI were never the companies under the same group and under the same management and also not associated companies as defined in the Companies Act, 1956 / 2013. The Investigating Agencies also alleged that Sujana Group Companies and Best and Crompton are friendly companies which is never defined in their Complaint nor in any of the enactments.

NO , It is stated in the newspapers and media that ED found rubber stamps  of 124 companies in the Sujana Premises during the course of their search and it is also stated that all the 120 companies are managed and controlled by YS Chowdary and his team of officers. And these companies are used for rising finance from Banks with a view to defraud in making the repayments.  Pl explain. Sujana Group consists of three listed entities, promoter finance companies, small steel making companies and overseas subsidiaries totalling to around 30 companies as follows:

Accordingly, The Sujana Group consists of the companies as follows:

Indian Companies

Sl.No	Name of the Company
1	Foster Infin And Trading Private Limited
2	Glade Steel Private Limited
3	Golkonda Finance & Trading Private Limited
4	Lakshmi Gayatri Industries Private Limited
5	Neueon Towers Limited
6	Prime Infoinvest Limited
7	Splendid Metal Products Limited
8	Sri Ganga Steel Enterprises Private Limited
9	Sujana Capital Services  Limited
10	Sujana Finance And Trading Private Limited
11	Sujana Holdings Limited
12	Sujana Pumps And Motors Private Ltd
13	Sujana Universal Industries Limited
14 15 16	Yalamanchili Finance And Tradin (P) Ltd. Sujana Projects Limited Sujana Energy Limited
Overseas Subsidiaries:
1	Pac Ventures Pte. Ltd
2	Nuance Holdings Limited
3	Sujana Holdings Limited
4	Sun Trading Limited
5	Hestia Holdings Limited
6	Empire Gulf Fze (Stepdown Subco))
7	Selene Holdings Ltd
8	Sun Global Trading Pte Ltd (Stepdown Subco)
9	Asian Tide Enterprises Limited
10	Alpha Ventures Limited
11	Optimix Enterprises Limited (Stepdown Subco)
12	Digitec Business Systems Limited
13	Telesuprecon Limited
14	Stl Africa Limited

 

The allegatioin of ED stating there were 124compaies managed and controlled by YS Chowdary is baseless and false and cannot be proved by ED.  Excepting the above companies,  no other company as stated in ED allegation is part of Sujana Group in any part of Sujana Corporate History.  It is interesting to note that ED in their allegation stated 120 companies.

It is reported that 124 rubber stamps w ere seized by the Enforcement Directorate during the raid on the premises bearing Plot # 18, Nagarjuna Hills, Hyderabad on 08/10/2018. It is understood that the ED team came for search of one company located on the Ground floor of the building, but ended up searching all the other floors of the building, in which the corporate offices of some of the Sujana Group companies are located. Some portions of the building were occupied by certain financial/ corporate consultants. The said 124 stamps were found in all the floors of the building. The list of the stamps is attached.

From the list, it is observed that as many as 32 stamps are repeating names, which means they are duplicates. If they are removed, 92 distinct stamps remain. The details of the stamps are given below:

• 2 stamps are carrying general description and not indicating names of any company/ firm. Similarly, 2 stamps are carrying the names of individual and not of any company.

• 17 stamps belong to companies/ entities of Sujana Group mostly functioning from the same premises.

• Remaining 71 stamps belong to companies/ entities not belonging to Sujana Group. They have independent management and operations and some of them are listed on the Stock Exchange also. They cannot be treated as Sujana Group companies either going by the ownership or by management control. However, Sujana Group companies have had trade transactions with some of those entities in the past. The data belonging to these 71 companies collected to the extent possible either through personal enquiries or public sources (MCA website).

• The list of repeated/ duplicate stamps is given in Annexure – IV.

Further, as and when any stamps are left behind in the premises by visitors inadvertently or otherwise, it is the usual practice to dump such stamps at one place for returning to the rightful owners, as and when claimed by them. Such stamps accumulated over a number of years amounted to a sizeable number.

Therefore, except as stated above, the Sujana Group or its directors were never had any shareholding / directorship in any of the other companies than the Group Companies and ED allegation is totally objectionable, false and baseless and alleged without proper application of mind.

It is once again affirmed that never ever, in the history of the Group, there was no benefit accrued to Promoter Group except by way of the dividends declared that too till 2000. If the public shareholders have become poor, the promoters of these companies have too, become poorer because the share prices are very much lower than their investments. It is note worthy to mention that the Promoters, many a time, have brought in funds at a higher premium compared to the market prices. Therefore, the actual loss to the promoter is much greater compared to that of a public investor.

Sujana  Companies never did any fraud or misrepresentation to the Banks or to the general public or  to any statutory authority whereas the Investigating Agencies are alleging as such and prompting the media to publish the wrong/ half truth information about Sri Y S Chowary connecting with Sujana Group even after his total disassociation with Sujana Group since 2014.

A weblink will be given to Sujana Group Profile for giving more clarity on. Various aspects and answers to different queries.