[hw_tw]

Request everyone to please read it in detail … NASSCOM the industry body for corporates has already raised its concerns to SEBI stating that

– There is no need to Intimate exchanges on Initiation of Audit … as it is a huge Reputation damage and Capital loss to the company ( this is exactly what we are witnessing in BCG’s case )

– Also it is against existing SEBI rule as the event is not yet “Materialistic” event … meaning it doesn’t need to inform anything till there is a final Audit report

https://community.nasscom.in/communities/policy-advocacy/sebi-submission-highlighting-challenges-in-complying-with-disclosure-requirements-in-case-of-initiation-of-forensic-audit-on-listed-companies.html

As I said in my last post, there was no corporate governance issue from BCG … NASSCOM has raised the exact concerns on the damages that would happen to a company with this rule

Hope people try to understand things from corporate point of view and stop debating atleast on this point

[Brightspot]

Until now I am not sure why skR was sharing all documents to sebi or auditor since sept-20 if audit was initialized from last week

[chris]

The thing is the letter by sebi and the commentary by the company definitely do leave room for some imagination.

My take would be, company received letter regarding need for “forensic audit of consolidated financial statement with special focus on asset impairment” on the 16th September from Sebi.

As per the company, they shared concerned papers and documents to contest/convince sebi that audit was unnecessary as the asset impairment was as per GDPR norms.

SEBI confirms that the audit is necessary on the 25th Feb and exchanges were intimated of the same on the 28th of February.

To avoid this confusion if the company had also shared the communication that it had received on the 25th of February then there would be some closure.

[chris]

On the other hand if the audit had started on the 16th of September itself, I feel there is a positive side in this as well, SKR (although will be categorised as bad corporate governance) has spared us six months of trauma and then the sebi report should be out anytime soon as I believe such audits take about 6 months To a year !!!!
Hoping for the best, forever an optimist 😂

[Anbuviji]

What happened to this forum, No updates and also latest pages are deleted 253 to 258, why it was done, Is this the effect of forensic audit, The growth of the company & future of adtech are intact, then nobody to worry, Admins cheer up, never give up, the time will change soon

[admin]

Hi @anbuviji – Welcome to the forum. I too noticed that a forum member has removed some of his posts for some reason. Subsequently there was a glitch to access this thread directly from homepage which is resolved now. Everyone can now start posting. Please feel to discuss freely, there is absolutely no restrain.

[Brightspot]

also SKR given some hints that he is cooperating with sebi officials in this regards since sept 21 by supplying trial balances, ledger accounts, bank books of the company; Detailed breakup of the impairedassets by subsidiary; Impact of GDPR law by product; Audit committee and board resolutions,regarding the impairment, etc. so we can guess that audit almost done and only formality of closing with publishing report left now..hope we get the good news asap..sky is the limit after that..

[Raja]

Dear admin, it was by mistake the posts was deleted..thanks for restoring the glitch in the website….if possible kindly retrieve and re post my messages.
I will be always participating in this wealth creating forum.
Best wishes

[Raja]

A very good msg from a banker – Positive2021-from mmb,
Dear Friends I m watching the comments of some boarders who are equating company with DHFL or other companies. Being a banker, I knew that it is a general practice of writing off NPAs on quarter to quarter basis. It happens with HDFC and all other banks. Statutory Auditors checks these on regular basis. Its one way of cleaning balance sheet. BCG has done the same thing and they have reported same also. Actually seeing exponential growth of business and tactical takeover of cash rich companies and future takeover of audio company etc has raised eye brows of in industry circles. BCG being a debt free company has shown the path through their stalwart leaders like Mr Reddy by consistent growth. Friends, u have to understand that fraud companies always hits bankers first. In this case BCG is a debt free company and acquisitions r made by out of internal cash accruals. We are seeing forensic audit as end of BCG and it had happened with so many companies then there was no hue and cry and they are working as it was in past. If u do not believe then checkout on the companies went under forensic audit. Friends its a process which will complete in some time and BCG will come out more strong than before. Patience is the key and do not sell ur treasure for peanuts. Company is bound not to share details of forensic audit process due to legal requirements. Hence hold ur gems. Its a sentiment game which will change with 1 or 2 large deals”

[Raja]

Good news, from 7th our script is moved to ASM stage 3…also looks normal trade might happen…
Best wishes

[hw_tw]

The Audit outcome is not going to change irrespective of whether the Audit has started long back or last week or whether the Audit will take 72hrs as mentioned by someone in MMB or some 6 months plus

Similarly Audit outcome is not going to change because some FII is still buying out there or if in case Mr. SS decides to wait and watch or he does a full conversion

Also it’s not going to change just because MediMint acquisition is thru or by Releasing earnings Guidance or some other action of the company ( No doubt all these are Trust boosters )

Also it is not going to change just because the price is falling or raising

It’s not going to change just because 2 lakh investors Trust and few investors doesn’t Trust

We need to just let SEBI and Deliotte do their duties and let BCG’s management continue their day to day operations as is without bothering or blackmailing them … In the end, We need to Accept whatever Deliotte report as is

Meanwhile, the question in front of us is … do we believe in the numbers or not …

If YES, stay PUT and wait for the Audit Report as and when it comes

If NO, we need to understand what is the Risk involved … Is this a big one or a small one … I mean will they consider this as an intentional misrepresentation of numbers or an unintentional one with just some observations and corrections along with some guidelines to follow

Also we need to note that the checks are only about impairment component … As we heard from many Accounting experts that this item is just an accounting entry and there is no cash going out from BCG’s Banks … meaning even if something comes out there is nothing to worry about as there is no question of money siphoning at all

In my view, the interpretation of these entries are subject to accounting standards of that country and are always debatable … Its going to be EY vs Deloitte… At most Deliotte will be issuing these observations and asking the company to make necessary corrections and follow some standard guidelines and nothing more than that

This is just my view basis my understanding at this point of time … Request all investors, not to get carried away with just price movements as it doesn’t reflect anything at all … please try to understand the matter in detail on your own and evaluate your own Risk … Accordingly you can take a call whether to Buy or Sell or Partially Sell or Just Wait and Watch

[imposiblznuthin]

post on mmb by 17rv

Guys,, Audit has been initiated, that s it. This has happened to many cos many times. Now as a normal investor, it probably isn t pleasant to hear and raises doubts but we shouldn t let it allow us to give in to naysayers.
I have some pointers to ask:
1. Cash is the king. Do u think a company with irregularities would ever want to make acquisitions in cash. Rather they would take a loan from the bank to make an acquisition.
2. Why would a company pay off the debt or reduce pledged shares if there s any irregularity. They would rather increase debt.
3. Subrato Saha is an independent director and was also in the audit committee till 2016 has picked up 2.64% stake in sep 21 and it s same in dec 21 shp. Why would he do that?
4. Wouldn t the directors of a company with financial irregularity want to reduce their stake at a high?
5. The cost of the present bonus is also about 161cr if I recall right which again will come from the reserve. Why would a co with issues do that.
6. Why would the company inform the exchange proactively about impairment of assets last year if there are things to hide. Why to attract unwanted attention.
Nobody has ever created wealth by being impatient or on weak conviction in stock market. We shouldn t surrender our convictions at the drop of a hat. I m not passing judgement that all is ok but yes I would rather not give in to the propaganda of naysayers and wait with conviction for status clarity because there are things that don t seem to be as the behavior of a company with cooked books. Nonetheless,,,everyone is free to do what they feel is right though. Rgds

[Deepak]

Where is headstead nowadays even rathi so many old people are missing from the group since long time…

[Logan]

Yeah, we all are missing @rathi_b and the Hyderabad team. They gave us so much confidence during very tough times and it’ll be great to hear from them now.

[Deepak]

Any other guy from hyderabad who can go and meet srk and clear all the things. Now situation is going worst day by day and even no more announcement to control the damage. And so many social influencer making fun of bcg investor and company. It really disheartening to see all this.

[kiran]

Hi,

Great pain to bear time in market now! Aacharya Peshwa stays in mumbai , I think , Bombay guyes can attempt to meet him.
SRK and Peshawa have tweeter handle also..
Just imformation…

[JackSparrow13]

Guys,
Please please calm down. Its no fun seeing money erode, but if you trust the company, and your portfolio allocation is ok (5% or less), just ride the bouncers. The new ball is bound to get old, and easy to bat against. Might get badly trolled for this, but “At one point, Amazon lost more than 90% of its value. But long-term investors still got rich”. If you have over allocated, think deeply. What if the next turnaround comes after 5 years? (just saying)

At one time, i had invested in a company called Usher Agro. Highly indebted, but i was counting on management to manage. Well the story had a pretty bad ending, company got liquidated (with my money in smoke). Only savior was <5% allocation. Reverse stories are also there. I hold sanjivani parenteral from 2016 at Rs. 14. Check its chart. Its all a part of long term investing.

[JackSparrow13]

Apologies in advance, if the above offends anyone.

[kiran]

If SRK was aware of inpending forensic audit suggested bu SEBI and is in communication with them then he should have fasten the bonus procedure and completed well within feb itself. Rather has given full one month time for voting to investors , illogical ! what was his logic to fix mar 16 as record date? and now no notoficatioons sofar , completely balckout !!!

[Deepak]

@admin is it possible could you send email on behalf of retail investor of brightcom forum regarding current panic in market.Today it is 5th day of lc in brightcom if it will conitnue like this our all the effort of last many years will go in vain.

[Author]

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