Faced with litigation among its promoters, Prajay Engineers Syndicate Ltd is likely to see further losses and possible delay in finalising financial results.
D Vijay Sen Reddy, Managing Director of the Hyderabad-based listed real estate company, said in a statement, “The cases between promoter group leading to filing of criminal cases and seizure of documents has impacted performance.”
Family feud
Due to various ongoing investigations, the company is unable to honour its commitments onthe One Time Settlement approved by the banks. “Even some banks have served notices to us saying they will cancel the OTS since payments are not made in time as per the terms of the sanction,” Reddy said.
Vijay Sen Reddy and his sister-in-law D Hymavathi Reddy are at loggerheads..
The company is debt-ridden and making losses. It is making efforts to come out of the red.
Due to the seizure of all data related to company accounts, electronic devices, and documents by the police, it expects the announcement of results and finalisation of annual report to be delayed.
With its accounts freezed, even payments have been hit lately, Reddy stated.
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