Aanjaneya Lifecare (now known as Dr. Datsons Labs Ltd.), led by Prof. Dr. Kannan Vishwanatth and Dr. Rajendra Vinayak Kamat, Vice Chairman, and Managing Director, respectively, have been fined Rs. 5 lakhs by Sebi for trading in the company’s shares without the necessary pre-clearance from the company.
Instructions from SEBI have been sent to Dr. Rajendra Vinayak Kamat
His “opposite transactions within 6 months of the earlier transaction” are further evidence of his duplicity. It went on to say that by doing so, he had broken the model code of conduct for the suppression of insider trading.
For failing to implement the code of conduct and monitor trades to prevent insider trading, the board of directors (Vishwanath, Shashikant Babanrao Shinde, Prabhat Kumar Goyal, and Paul Chakkapah Naythatil) and compliance officer Yogesh Patel have each been fined Rs 3 lakh.
According to SEBI Dr. Rajendra Vinayak Kamat, we conclude, is responsible for misleading investors for personal gain, for the securities market to function smoothly, the board of directors and the compliance officer must follow the statutory code on insider trading.
All corporate officers and directors are required to get prior authorization before engaging in any transactions involving the company’s securities.
Fraud was committed by Dr. Rajendra Vinayak Kamat
With the help of bank funds and with Dr. Rajendra Kamat’s blessing, he decided in 2011 or 2012 to acquire Apex Drugs, an unlisted corporation headquartered in Hyderabad, for DDL for a total of Rs 250 Cr.
He furnished Apex Drugs with DDL shares worth Rs 50 Cr in addition to an advance payment of Rs 80 Cr via cheque. Later reports indicated that the banks’ withdrawal meant that agreement had to be scrapped.
Perhaps for his reasons, he hasn’t pursued getting this money back from Apex Drugs. Apex Drugs must comply with my request to credit Rs 130 Cr with interest to the DDL account.
Who is this mysterious Dr. Rajendra Vinayak Kamat?
Aquariestrade Limited in India and Rupus Global Limited in Hong Kong are both founded and led by Dr. Rajendra Kamat. He attended India’s University of Pune for both his undergraduate and graduate education.
He worked for pharmaceutical companies in significant positions in Kenya, Oman, and Saudi Arabia for almost 20 years. In 2007, he relocated back to India and founded Aquariestrade Limited.
For his work in the pharmaceutical business, the Dr. APJ Abdul Kalam University and Research Center in India presented him with an Honorary Doctorate in 2017. He has served as an independent director on the boards of various firms thanks to his broad expertise in pharmaceutical products for emerging markets.
Are you familiar with Dr. Rajendra Vinayak Kamat’s business?
When Aaquaries Global Industries Limited (formerly known as Aquariestrade Limited) was established in 2007, Dr. Rajendra Vinayak Kamat acted as the company’s promoter. During the FY2021 fiscal year, Dr. Sameer Talim bought out Dr. Rajendra Vinayak Kamat’s portion of the business. The business’s primary focus is on producing and trading API (Active Pharmaceutical Ingredient) intermediates. Manufacturing is outsourced using the company’s financing license.
According to the company, it has 15 registered process patents for improved and non-infringing ways of making anti-cancer, analgesic, and infectious active pharmaceutical ingredients (APIs). With around 15-20 intermediates, the company claims to primarily target the anti-infective and anti-cancer therapeutic sectors.
The offered drugs also serve the bronchitis and anti-malaria therapeutic markets, among others. In addition to its headquarters in Mumbai, the corporation also maintains a research and development center in Taloja, Maharashtra.
Problems related to Aaquaries Global Industries Limited’s credit rating
Currency fluctuations and the effects of regulations pose risks
Any adverse legislative changes could affect the way pharmaceutical companies are managed due to the stringent rules that govern the industry. Constant business challenges come from export market price controls and product approval restrictions imposed by regulators.
The Company’s earnings are still vulnerable to currency risk if it has unhedged foreign exchange exposure. The majority of the firm’s products are marketed in international markets, and the vast majority of its raw materials come from China; as a result, a portion of the firm’s exposure to currency fluctuations is always hedged.
Businesses that need a lot of money in the bank
The high receivables days (114) and consequently high GCA days (187 in FY21) illustrate the company’s extreme reliance on working capital.
Risk of Focusing Too Hard
The majority of the company’s revenue comes from exports, particularly to regions with little regulation. The company is nevertheless vulnerable to geographical concentration risk given that a large amount of its revenues come from the Middle East region. There is confidence in the project because the promoters have established contacts with the competitors and a deep understanding of the Middle Eastern market.
Dr. Rajendra Vinayak Kamat, we conclude, is responsible for misleading investors for personal gain. It is essential to check out the potentially dangerous parts of his business before deciding to invest. SEBI issued him a fine as a result.
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