[Investor_2022]

Let’s hope that result will not be postponed.
Many companies are postponing it as sebi has given an extension till 31 July for declaration of Q4 result.

[pranil]

Dear Buffet,

Yes no DDT this time.. however it will be taxable income in our hand. So if we are in 20% income tax bracket, we will pay 20% tax.

I too hope 20% dividend. But I think they will pay 10%

Also expect at least one announcement on pending issues.

All the best!

[VALUEBUYER001]

Yes mostly they may pay a dividend of ₹ 0.10 or ₹ 0.15 or maximum ₹ 0.20 only.if it is more than ₹ 0.20 it will be a pleasant surprise

[buffet]

Guys,

Results are out on bse. Dividend: Rs. 0.05/share

https://www.bseindia.com/corporates/anndet_new.aspx?newsid=de616a97-e5fa-4b29-97bd-5e9a0aee9561

[pranil]

One more quarter and year of flat numbers….it’s almost 5 years.. hope we will see growth in 2021.

Dividend of 5 pc; don’t understand what purpose it will serve. In fact it may hightlight cash issues company facing. Better no dividend should ve considered.

No announcements on pending issues.

In all avg show.

[pranil]

272 cr invested in business in fy20. Total investment in last 6 years stands rs 1512 cr. This is significantly high and it is interesting to know if we can expect any kind of step change in returns.

In my industry we can set 2-3 big size plants in India with this kind of investment.

[odysee]

No purpose is served in proposing a dividend of 5 paise per share or a token 2.5%. It would have been appropriate to have not announced a consideration of dividend on the 25th of June, as none was expected.
The company could have announced and paid an interim dividend later when cash flow permitted.

[sandyc316]

@pranil Assuming that the entire investment is outside India, may I suggest that you convert them in USD for an apple to apple comparison?

@odysee Completely agree with you. I would wait to hear the management’s point of view

[Myshport]

The audited financial results show the following.

1) 1. The company has defaulted in repayment of dues to Axis Bank and the account is NPA.
2. With respect to Income Tax, TDS the company is not regular in depositing with
appropriate authorities.
3 The subsidiary company M/s. Ybrant Media Acquisition Inc has acquired M/s.
Lycos Inc., M/s. Ybrant Media Acquisition Inc has dispute in respect of consideration of USD 16 Million for acquisition of M/s. Lycos Inc., to Daum Global Holdings Corporation and the district court of New York has given judgment to handover back 56 % equity in M/s. Lycos Inc to M/s. Daum Global Holdings Corpéfe ae
and the concern matter is pending as on date.

I thought these points were being taken care of by the management and I was looking forward to some positive comments on these issues.

In my opinion, till these issues are resolved, the market is not likely to take notice of this company. I may be wrong.

[nitin_asce]

I think this update by auditor is based on situation at 31st March 2020. We might get additional information in concall.

[sateanna]

Dont thinks things have changed much since March 31st, else we would have had updates on Axis loan & Daum case. May be they wanted get the results out of the way before declaring the same. However delay in payment of statutory dues not expected from Brightcom. Could be a serious cash flow problem.

[buffet]

Another update on BSE.

https://www.bseindia.com/xml-data/corpfiling/AttachLive/9d13f581-5257-48f9-9c3b-4455d32644f3.pdf

BUSINESS AND CORPORATE UPDATE
– Effectively managed the transition to “Work From Home” (WFH) for employees
working across India, Israel, Serbia and Argentina very effectively. Employees at
other locations were already mobile to begin with and did not need much
transition planning.
– Successful issue of preferential shares.
– Global Audit of 12 subsidiaries by NY based Global Auditor is ongoing. That audit
is geared towards helping improve the working capital needs of the company.
– Certain legacy items on the balance sheet, across all subsidiaries have been
impaired, in view of projecting a healthier overall balance sheet going forward.
We will send out a detailed note to clarify further.
– Discussion on the LYCOS settlement was delayed due to COVID19 pandemic
and inability to travel.
– Closed out Canara Bank loan in last financial year. Next in line is the loan with
Axis Bank.
– DigiDay at Dubrovnik, Croatia and Mobile World conference in Spain were both
cancelled due to COVID19. However, the teams were able to conduct scheduled
meetings virtually.
TECHNOLOGY UPDATE
– Best 72 SSP list of eDigital for the year 2020.
– Publishers online are seeing huge spikes in trafc.
– Proud to share our new B-Local exchange! We’re ofering advertisers an
alternative to the “faceless masses” of a broad programmatic approach, by reincorporating brands into a community. This has been a very efective tool to
improve business. Philadelphia Magazine, boston.com, The Seattle Times, Boston
Globe, The Salt Lake Tribune are some of the media houses already signed on.
CONFERENCECALL DETAILS:
Brightcom will host a conference call on 1st July, 2020, at 4.00 pm Indian Standard
Time to discuss the financial results. Call-in details will be available from the
Investor Relations page of the company’s website

[buffet]

This one seems interesting initiative – Proud to share our new B-Local exchange! We’re offering advertisers an alternative to the “faceless masses” of a broad programmatic approach, by reincorporating brands into a community. This has been a very effective tool to improve business. Philadelphia Magazine, boston.com, The Seattle Times, Boston Globe, The Salt Lake Tribune are some of the media houses already signed on.

Publishers online are seeing huge spikes in traffic. This could have a huge impact on June-20 quarter results.

Let’s see the positive side.

[m4max1979]

Can somebody throw some light on the write off of current assets of Rs. 868.3 crs in subsidiaries? Is it related to lycos or something else we were not aware of?

[buffet]

@max the recent update says

“Certain legacy items on the balance sheet, across all subsidiaries, have been
impaired, in view of projecting a healthier overall balance sheet going forward.
We will send out a detailed note to clarify further.”

Hence it’s not just lycos; spread across subsidiaries. We will get more updates in conf call on Monday.

[odysee]

The conference call is on Wednesday 1st July at 4pm IST.

[pranil]

This is second big write off after one big write ofF of 250 cr in receivables in 2012.
Let’s see what are details.

Secondly I was never comfortable our company not paying off loans but the reason was given there are issues and litigation. But then can we justify delaying tax payments time and again?? It’s not sign on good ethical company. We must request SKR to Pay off statutory payment on time. Why there is so much desperation to invest money in business that it takes priority over statutory payments.

[pranil]

There is good chance that this write off is forced by BDO; if it is so it only signifies the importance of audit by reputed auditor.

Till last call SKR assure us quality of receivables and assets. So I don’t understand this big magnitude of write off. Imagine it’s take of rs 15/share which is 50% higher than its current price.

[sateanna]

The worst form of non compliance is not remitting the statutory dues on time. Hope from now on all dues are paid on time. The concall will let us know on when other issues will be closed.

[Logan]

@pranil, you are right about the importance of having a reputed auditors, do you know how much BDO would charge if BCG appoints them to audit the India business too?

Coming to write offs, in the balance sheet there are no significant changes and in fact the receivables have gone up, so I think they haven’t written off receivables.

There’s so much confusion about the write off. 800+ crores is not a small amount, they should’ve given details about it.

[Author]

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