Transchem - A company with no business

There are many fraud businesses that trade in the stock market.

Transchem is one share where there is no business to value. They have no operations, the management is not lying about it.

FY13 Annual report:

During the year your company could not commence any business activity. Various business options to revive the Mushroom Division of the Company were considered however due to national and international economic scenario none of them appeared feasible. In view thereof your board decided to dispose off that plant. Your directors are looking out for economic feasibility to set-up a unit for research of new pharmaceutical molecules.

 Does it seem like the company is trying to sincerely setup a research unit?

Please check the FY09 report:

The Mushroom Division of the Company that was operated on a 100% EOU is non operational for several years.

The Company is having a large chunk of land and building near Pune, Maharashtra where the Mushroom division is located.

As the management of the Company foresees very dim possibility to restart the Mushroom Division, in view of the same it is proposed to convert the facility of mushroom division to other profitable line of business.

The proposals to convert the factory site of the Company into software SEZ / Biotechnology SEZ are under consideration. Final decision be taken only after detailed feasibility study carried out by professionals.

 The company does the same thing every year, try to start some business. But they would chase an industry that is more attractive. Why are the shareholders even holding these stocks? Are these not cases of fraud? Please let me know if you agree or disagree.