[Anonymous]

@Dr.Jaysee. very good job done by you. It is really embarrassing situation for them. I hope definitely Mr. Suresh will understand this investor really cares about the organization.

[VALUEBUYER001]

Dr Jaysee Thanks for your efforts. But BCG does like this due to casual attitude of their staff. This is not the first time to ignore

[VALUEBUYER001]

It is good BCG has not gone into t2t in today’s review

[Logan]

I request everyone to send mails to the company asking them to keep this year’s (FY20) annual report as informative as possible (especially the balance sheet).

There are many items where proper details aren’t available and the company simply has mentioned those items as other assets, loans and advances etc. (They’ve followed the accounting standards but we need more information)

We investors know and understand what those items are but any random person (new investor or potential investor or even analysts) will have many confusions when they read the balance sheet.

They gave us good presentation after the asset impairment and we want them to do the same in annual report.

If anyone who wants to follow the company he/she will always read annual reports and they never will look at presentations that the company has shared with investors so it’s very important to provide proper details in the annual report.

We should put more pressure on the company to do it as I’ve seen many people complain about it on various platforms. Since many people don’t understand these things properly they’ll simply start saying nonsense things about the company.

[Anonymous]

@Logan I think BDO report need to come that will evaporate all the doubts. Once it comes out investors sentiment will boost. We hope it come sooner than later. Once bdo report comes then we will see lots of development hopefully. Positive report from bdo is very important. Earlier I was thinking LOC too much, but after I realized if organization has to survive and especially when credibility matters then balance sheet should be crystal clear like Himalayan water. Hopefully, bdo reports come positive by this year.

[drjaysee]

Dear @Antu, I like this…”balance sheet should be crystal clear like Himalayan water”. Lets hope BCG will come out of all the struggle at the earliest and journey will start positively.

[odysee]

All excellent points and suggestions @ Logan.
I agree that the BDO Global report ( if prepared ) of subsidiary companies does not need to be released to the public at large. But,
is there a confirmation that the audit of the subsidiaries is actually being conducted by BDO Global? That’s all that really matters if the answer is in the affirmative. We know that OMS of Israel was audited by E&Y. And that audit report was not made public, nor is it necessary.

[odysee]

Appreciate your response @ Logan, and I am in sync with with the content of your post. But then the question would arise as to which entity would be the recipient? Who will be granted the LOC? Unlikely that each individual subsidiary would be serviced by the lenders. Hence, the question of the new consolidated entity comes into play. And the creation of that to encompass the business of the 12 subs. That matter is on hold as we were briefed.
As you had also indicated, there could be many complexities (including taxation related ) if the LOC was granted to the listed holding company i.e. BCG , as then further distribution and funding of the subs for business expansion located in different countries would arise.
No clarity on this until provided by the management. And no useful purpose is served on our speculating on this at this point of time I suppose. It will happen when it does.

[m4max1979]

I do not think that LOC will happen anytime soon because when it comes to loans provided by MNC Banks abroad, sanctioning of loan takes a lot of time and even after loan is finally sanctioned, paperwork is huge which takes time. So I hope that Axis bank gets settled as early as possible.

Another issue is that what if BCG does not get LOC? I know many people including me might not like to even think about that but it is what it is and it has happened before. Does BCG management have a plan B?

Now that promoter has clearly said that LOC is their priority and Daum settlement and consolidation would happen only after LOC, I am afraid that just like previous times management might put everything on hold waiting for LOC and continue dragging pending issues.

[m4max1979]

@Odysee a lot of companies take loan in parent company and lend it onwards to their foreign subsidiaries. It is not complicated but is a common practice because in case of most companies, its their foreign subsidiaries which need support from parent. In case of BCG almost all the income is generated abroad. A lender would not like to fund an entity which has losses in its books and is technically a defaulter to Banks even though the consolidated balance sheet looks good. That is the reason i was surprised when promoter said that consolidation is on hold for LOC. It is very much possible that a Bank could lend to the US subsidiary i.e. Frontier Data which has a decent balance sheet with an understanding that other subsidiaries would be consolidated within specified timelines. Hope they do get LOC quickly so that me and all my friends get some peace of mind and some sanity back. This cmp movement between 5 and 6 really takes a toll on the patience and perseverance of investors.

[Anonymous]

@Max see investors will see the attitude. They are not stupid. Before investing, they will look all possible pros and cons. For BCG, most important thing is to get back the trust of share holders. Mr. Suresh has to lead from the front. He has to be more prudent. A company is excellent when it creates value for its shareholders. Two examples enough to understand infosys and Amazon. Hope and pray Mr. Suresh delivers. Another important thing Mr. Peshwa’s induction almost 1 month. His guidance most important. Hope, he delivers the best. Time is precious gift by god. Hope, time not running out for us.

[odysee]

@max4nax1979, I am fully aware of borrowings in the holding company for funding of overseas subsidiaries, and it being a common practice.
The point here is that the purported funding is not local , but a line of credit from a US based lender or consortium of lenders against receivables of multiple foreign subsidiaries of BCG. Clubbed together, the receivables are fairly large, and hence the originally stated purpose of a newly set up company in the US to encompass 12 existing subsidiaries.
It was indicated that this would be a more pragmatic and doable approach to acquire funds for business expansion , particularly since this entire business is overseas and well understood there.
The situation today is somewhat opaque and cloudy.

[odysee]

My apologies @m4max1979, I mistyped your forum name.

[drpram]

Dear friends,
We all must be closely following these three IT related stocks ie BCG, Subex and 3i infotech..Subex and 3i have entered into an scheme of arrangement by capital reduction..I think this has really unlocked their way to find their value..Subex has almost on the verge of implementation and the stock is literally flying..
So my question is why don’t BCG can also adpot the sane model of capital reduction by reducing FV from 2 to 1 and the following issues
1. Settling Daum and axis issue at one go
2. Reducing no of shares to half and thereby reducing floating shares
3. Simply raising the CMP to double the price hence can come out of penny category..
Which can greatly reduce price manipulation and can be a value unlocking way..
I am not an expert on this..
Please ignore if it seems silly

[VALUEBUYER001]

They have losses and so they are reducing capital but BCG case is not the same. Let’s hope for the Best

[Anonymous]

@Logan here is an article on line of credit how long takes pls go through. I hope once axis settlement done hopefully loc possible. By the way, article title is: How Long Does It Take to Get a Line of Credit. Pls have your opinion on this.

[VALUEBUYER001]

Antu Ji please send the link for the same

[Logan]

@Antu, I think bankers can explain about the process better as they’ll have good knowledge on the topic.

Also the link which you have shared, in that they’ve discussed mostly about personal line of credit and I think the process is much more complex for businesses.

[drjaysee]

Dear @Antu and Friends,

LOC looks very good and i5 has lot of advantages especially those who has heavy financial Crisis. Just I want to share the link for the same which may be useful to our group friends who are all new like me.

https://financebuddha.com/blog/how-long-does-it-take-to-get-a-line-of-credit/

If @Logan could share his opinion on the same Would be highly appreciated.

Thank you

[Anonymous]

@Logan yes I think you are right. I read an article. It discussed about type of line of credit. It’s not easy to get commercial line of credit. Article title is How Does a Commercial Line of Credit Work?

[Author]

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