General Discussion

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    Registered Boarder

    Yes you are right odysee this time we can make assumption only, till the time any update come from bcg.I hope bcg comes with solid update within 2 or 3 days to clear the negative noises.

    Registered Boarder

    Instagram officially discontinues standalone IGTV app

    Instagram (owned by Meta), one of the largest social media companies is discontinuing IGTV. Should they write off this asset or continue showing it as an asset in their books? Whatever they invested in that becomes useless if no one uses it. Now Instagram is investing heavily on Reels.

    The company thought it could compete with YouTube when it started IGTV but it failed. Instagram was slow in short videos and tik tok took advantage of that. This is how brutal the market is. Everything changes so much and you have to be innovative to stay competitive.

    Instagram is starting a paid subscription model now. Reels is not high margin.

    With all these, the companies have to worry about different rules and regulations too (like GDPR). Big companies have paid billions of dollars in fines when they didn’t follow those rules and regulations.

    The technology that is there today will become obsolete tomorrow. BCG started Brightcom video player and if it works out then good but if it doesn’t then they’ll have to write it off. If they don’t try they can’t grow and compete and later lose to their competitors.

    Registered Boarder

    Is it possible for someone in hyderabad personally meet management team of Brightcom?

    Registered Boarder

    I don’t think company can satisfy investors with another update or even a call … On the contrary it might create further confusion

    Most of us are still stuck our minds out there on past things like company should have informed us before on Sept 16th itself … and some people have tried to justify this fixation further that company would have done some hera-pheri and that’s why they have delayed this communication etc; and other theories

    Nothing can change these fixed minds except the final Audit report for which we need to wait for long

    The more questions we ask, the more suspicious we start getting into … company can’t share each and every detail with us as they do with SEBI and Deliotte

    Company has already given an update on sequence of events that have happened and the next course of action from Deliotte … Also previously they have already given details of list of Assets that are impaired

    Some Facts which we need to Accept as is, as the things stand right now

    – The company is undergoing a detailed Audit … It doesn’t matter now whether it has started on Sep 16th or Feb 25th

    – The company has informed exchange as it is mandated by SEBI … Its a huge reputation impact which any company has to bear … If not for SEBI’s mandate no management would ever be willing to inform investors at this stage as it is only the beginning of the Audit … the last two days of reactions and price actions is a clear evidence of the situation which any company doesn’t want to get into

    – There is no evidence of any hera-pheri yet

    – There is no financial impact because of these wrong entries

    There is no timeline fixed by SEBI … and it is also difficult to fix any timeline given the complexity of it and the multiple parties and multiple iterative steps they have to get into to arrive at final report … The Audit can go on for 3, 6 or 12 months

    Even Deliotte will not be in a position to give any timeline

    There is no point in keep asking the company for an update and infact there is nothing which a company can update us apart from saying “The Audit is going on and we will inform as soon as there is an update worth enough to be informed” …🙂

    Instead of getting into never ending questions mode, its better that we focus on following things

    – Suggest possible actions actions (except another update) we seek from the company so that the Trust can be built …
    Like closure of Media Mint acquisition soon, Releasing Guidance numbers early etc; and some others as suggested by one member in Telegram channel

    – Focus on the happenings on the business front during this period

    – And finally Wait for the Audit report

    Registered Boarder

    I agree with @hw_tw that the company cannot do anything about the audit and reputation damage already done. But it can do a lot of other things to rebuild it.

    1. The company was planning to improve its accounting practices and in the AGM we were promised that the investors would be informed about it. The company can let us know that.

    2. Promising Limited review report of its consolidated statements for the current FY.

    3. The company was expecting 250Cr FCF by end of March. So by now, they should have some cash that can be used for ESOP buying. Use a small percentage to buy some taken shares in the ESOP account. This will improve the sentiments.

    4. Provide forward guidance for growth and FCF for the next FY.

    5. Inform if they are going to stick to the dividend distribution policy which states 15% of FCF will be distributed.

    Registered Boarder

    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

    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

    Registered Boarder

    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

    Registered Boarder

    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.

    Registered Boarder

    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 😂

    Registered Boarder

    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

    Topic Author

    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.

    Registered Boarder

    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 is the limit after that..

    Registered Boarder

    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

    Registered Boarder

    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”

    Registered Boarder

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

    Registered Boarder

    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

    Registered Boarder

    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

    Registered Boarder

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

    Registered Boarder

    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.

    Registered Boarder

    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.

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