Bluechip Stockspin Limited Many mysteries have unlocked

Give a deep thought otherwise you may have to repent at leisure Blue-chip stockspin Limited had come up with an open offer on the name of Jignesh Hiralal shat. The company, withoutgood reputation, had entered the  capital market with offer of 32, 50,000 shares with face value of Rs. 10 each in 1996. The company has come up with a
ridiculous offer to sell off share with face value of Rs. 10 each at a price of Rs. 2.75 each i.e. at a discount of 72.50 per cent. Many investors have inquired with us
about investment in the open offer. Shall we grab the opportunity or not was the
common question they have asked to us. We are publishing our perception about the company and its promoter in the interest of our readers. Here is the fact sheet of the company.

The Blue-chip Stockspin Limited had collected Rs. 3.25 crore from the market. But after IPO, whether the promoter of the company has ever called board meetings or not is not known. Whether promoter has called AGM or not is also not known. It is also not known that whether the promoter of the company has prepared the balance sheet or not. Has
he send the balance sheet to share holder is also not clear. Letter of open offer is the only document which indicates that the company has share holders, because all
the activities that have taken place in the company had not been passed on to the share holders of the company.

Use of Fund : - Share holders of the company are not aware of the fact that how the fund of crore of rupee’s collected from the capital market through IPO was used. How the money was spent is not known. It is believed that promoter of the company has used the fund of more than Rs. 3 crore for inter corporate deposits deposits and investment in stock market. Now the big question is that where the interest of inter corporate deposits has gone and how was the interest used? It is also believed that the money was deposited with companies in which friends were connected as promoters and directors. There is no clue of interest receipts on the deposits and principle amount. Whether the
promoters have received back the amount in cheque or cash is also a matter of investigation. There is no clear picture about the investment and its receipts.


Financial conditions: - If we go by the balance sheet gross income of the company was more than Rs 2 crore and net profit was in millions. But to utter surprise the company has shown zero income in March 2008. How the scene has changed is surprising for every one. Where the fund of crore of rupee’s have evaporate? · Delisting : - The Company was
listed at BSE-Bombay Stock Exchange, Baroda Stock Exchange and Ahmedabad Stock Exchange. But due to many irregularities the company was delisted from all the  xchanges and the promoter of the company has willingly never tried to get it listed in any of the stock exchange. Thus share holder of the company was totally in dark about the share price of the company after delisting.

Directors of the company :- Except one founder director of the Bluechip Stockspin most of the original directors have left the company. The founder director has shrewdly appointed two clerks working it his office as a directors of the company. Most aghasting thing is that one of the director’s age is around 40/42 and has experience of about 35 years in the business of investment and finance! One of the clerk appointed as a director of the company is out of country since last sever years. He has not come back to India since 2002. One Promoter/Director is also a defaulter in a cooperative bank of the state. Does a board member require such qualifications to be in the board of the company?

Stock sell of promoters :- promoters- share selling their holding includes owner of Gokul Icecream and his family members. Investors and share holders of Blue-chip stockspinmust not that the most of the companies of the family ad been delisted or closed. One of the member of the family is big defaulter of cooperative bank. He has been put behind the bar by the state police during last Diwali in October, 2009.

Investment in companies with promoter’s interest : - Chief promoters of the Blue-chip stockspin have interest in company known as Blue-chip Publication Limited. Promoters had given some advertisement in newspapers for selling off the offices of the company before a year or so. He has also penned an agreement of selling off the machinery ofthe company. Thus to utter surprise of every investors promoters of Blue-chip Spin stocks has invested Rs. 3 lac by issuing 30,000 shares in a dying company. Thus it is a big question that why promoters of Blue-chip stockspin has invested Rs. 3 lac in shares of Blue-chip publication, which is a dying company. If the promoters promoters of the company do not have money to get his own company re-listed in the stock exchange has spent Rs. 3 lac towards investment in a dying company? There is no sound logic behind the move.

Balance Sheet : - In some of the cases the company has filed two to three balance sheet at a time. How the promoters of the company has managed to call board meeting to generate documents in mid of constant irregularities in the company is also a big question. When the promoter of the company has got approval of the board of the company on the resolution passed in AGM. There is no clarity on the issue.

Comments of Auditors of thecompany : Promoters of the company has not executed the sell deed of its sell of its Rajkot office and possession of the property was handed over to buyer. One must note the fact that the company has ownership of three offices number 701, 702 and 703 located in Silver Oke building near MahaLaxmi cross road at Ahmedabad. overall price of the offices were Rs. 11.75 lacs. But when and to whom the offices were sold and at which price are not known. There is no proper account shown of the amount received from the sale of the properties. But was kept open since last 6 to 10 days. A temporary appointment of a manwas cleared to create an image that the company is operation from the rented office. It is surprising to note that electricity connection of the rented office was disconnected, because non payment of bill of Rs. 200! Only a table and chair is there in the office. The telephone number of the office 079-26305023 if dialed BSNL will reply that Service to the number has been withdrawn. Thus even  elephone connection was disconnected due to non payment of bill. In short all these things indicate the true condition of a registered company. Is company passing through so severe crisis that it does not even have Rs. 400 to 500 to pay its electricity or telephone bill? The situation gives other indications that the promoter of the company has just opened the office to investors for open offer.

Blue-chip Stockspin Limited has spent Rs. 53, 06,171 for buying a car. But no invoice was presented for the purchase of the car. Thus where the car worth Rs. 53 lacs has disappeared is also a big question. There is no provision of depreciation against the purchase of the car! · According to report of auditor inter corporate deposits worth Rs. 85 lac have overdue and interest thereupon of Rs. 71,54,532 was still not collected. Whether the amount was write off or set off against some other debt is a big question? Thus, all the factors indicate that the company worth crore has turned in to an empty box. Now another question who will buy the dying company by paying up some amount? In past some circles have tried to usurp the company. One must ask himself a question before entering in to open offer of the company that whether the current directors are trying to shake off their responsibilities? Is promoter trying to go for permanent delisting of the company by collecting 90 per cent shares? Every thing in the company is irregular. Promoter is out to lure share holder to sell off their holding in connivance of some interested parties? Many mysteries have not been unlocked uphill now? Much more is likely to happen before the final curtain call.