Read from Source Parameter

Has anybody had the issue where you add a shapefile (with a set projection, including a .prj file) as the reader and when writing this shapefile to an SQL database it does not bring the Coordinate system over with it? 

 

 

Example: 

 

Load a shapefile into a GeoMedia SQL database.

 

For the Parameter Coord. System: you leave as the default "Read from source" 

 

 

This runs successful but when you go into GeoMedia --> Warehouse -->Feature Class Definition and review the Coordinate System, it is empty? Indicating that FME did not actually Read the Source Coordinate System and in return your feature class is left with no associated Projection?

 

 

Does FME require a specific Projection file for it to "Read from Source" ? because regular .prj files it does not seem to reconginze.