Tagged: Clarification of Transaction.
June 27, 2020 at 9:00 pm #7354sateannaRegistered Boarder
I thought we already had a list of questions.. We can send that to investor relations in advance so that can do thier homework.. It can be sent on behalf of the bcg investors forum off which approx 100 retailers are members.. Most of the questions will be on the issues rather than the future business which is sad…June 27, 2020 at 9:42 pm #7356T9CRegistered BoarderJune 27, 2020 at 9:44 pm #7357pranilRegistered Boarder
Looking at the record of replies to email, I doubt emailing questions will be effective. Even if we email, let’s have plan to ask it in callJune 27, 2020 at 9:53 pm #7358nitin_asceRegistered Boarder
Sending questions is a good initiative. Last time also SKR in his initial address mentioned that they received some queries and he tried to answer some.
He may not give full info as desired by us but still some information is better than no information.June 27, 2020 at 10:02 pm #7359VALUEBUYER001Registered Boarder
For a company with mcap of 500 crores impairment of 850 ₹ crores write-off is really very huge and shocking2+June 27, 2020 at 10:22 pm #7360sandyc316Registered Boarder
@VALUEBUYER001 But also, I think, more than anything, it goes to show that the company is deeply under valued! If the market cap were 5000cr i.e. a share price of rs. 100, will that be less shocking? Either way, we need clarity on this.1+June 27, 2020 at 10:53 pm #7361
The main problem with the company is that they don’t communicate well with the investors and the market.
They think that they can address issues in the conference call but if they want value recognition they have to report properly and it should be in print and not verbal.
We can’t dissect everything and come to conclusions, the company should provide all the details.
Like I mentioned earlier, any person who reads the annual report for the first time, obviously will get bad impression on the company because there’s no proper details in the report. Not everyone will try to contact them about queries but even if they did that person won’t get any replies from the company.
And I don’t know who advises the CEO about all these, how can they write off assets worth 800+ crores and still don’t report anything about it.
The stock wouldn’t be trading at penny levels if the company had given proper details on important items.
We have no doubt about their ability and we know it’s not easy to run a company that has operations in more than 20 countries but they should at least do the bare minimum.4+June 27, 2020 at 11:02 pm #7362
But nowadays they are improving communication with the investors and they are showing intent to address our concerns, which is very good.
My suggestion for them is that they should also address the concerns of the market. If they report everything properly, then we need not worry about the price.
Including interest they have paid down around 250 crores of debt, which is not a small amount. So they are doing their work but they aren’t reporting it properly.3+June 27, 2020 at 11:46 pm #7363buffetRegistered Boarder
As per recent update on 868 cr writeoff, I am hoping some clarification before conference call. It’s shocker. Nowhr SKR mentioned about any asset under distress. I suspect BDO may have forced/advised w.r.t. the same – “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.”
Nevertheless, they should have explained reasons about write-off in annual report itself.
Resolution of Daum issue digitally is very much possible. Not sure why SKR need to travel in the first place. Reliance recently raised billions thr digital means.2+June 28, 2020 at 12:01 am #7364adminKeymasterTopic Author
One person asking all the questions wont be permitted as there will be others in queue waiting for their turn. Maximum two to three questions a person can ask.
Agree. We can follow same thing as we did last time, sending the list to IR two days before the conference. Hopefully this time too the management will start by answering queries received by mail. If anything is missed or further clarity is required someone can follow up.
I will be posting the questions we have discussed so far in the thread – https://brightcominvestors.com/forums/topic/questions-to-ask-for-conf-call-on-17nov19-2pm/
At the end we can order all the questions according to priority. Suggest the final list to have not more than 8 questions and some of us can mail them to IR.2+June 28, 2020 at 2:24 am #7370DeepakRegistered Boarder
I think mr pisipatti also no longer working with company as a president for reference check his linkedin profile. He is MD of trayan limited from jun2020.Bcg also didn’t inform to exchange this thing.4+June 28, 2020 at 9:10 am #7372Rajesh PatelRegistered Boarder
its good, its indicate trayan belongs to BCG0June 28, 2020 at 11:38 am #7377CuteinvesterRegistered Boarder
Here Write off means putting aside long pending receivables, which is difficult for auditing, which is not waive off.
They have informed going to consolidate as one company BCG,After auditing report still standalone,consolidating continues. The market considers
only standalone i think. correct me please if i am wrong0June 28, 2020 at 11:52 am #7378sagraaRegistered Boarder
I think write-off means writing off all the investments which didn’t work well like :
1. Lycos life
2. My SMS acquisition
3. Aollo Lycos initiative
4. And many more.
We already know these initiatives backfired and money invested in them has evaporated and will not come back.
As a cleaning exercise they are consolidating all of their bad investments.June 28, 2020 at 12:32 pm #7379sateannaRegistered Boarder
The ppt says bdo audit going on.. Does it mean we will have one more set of financials for the year or is it purely to consolidate under a single entity??June 28, 2020 at 2:35 pm #7383pranilRegistered Boarder
All these initial cant sum up to 800 cr plus. DM subsidiaries should also be part2+June 28, 2020 at 8:19 pm #7384sandyc316Registered Boarder
A point to note: The Menasa Research report does mention a Discount for lack of marketability of Rs 1,092 cr. for Subsidiary Companies Shares. Think the company has accounted for this as well in the write-off.
Everything should be clear once the management provides the explanation.June 28, 2020 at 8:56 pm #7386VALUEBUYER001Registered Boarder
Sateanna BDO audit may be consolidate 12 subs into 1 USA sub for loc purpose2+June 28, 2020 at 9:54 pm #7388
I don’t think they’ll release the BDO report to the market as it contains sensitive information, guess they don’t want competitors to see that report.
If they convince the market that the numbers are legit, then nothing can stop the stock from reaching great heights.
That is why I want them to appoint BDO to audit India operations as well, it brings credibility and trust.
With one shot they can resolve many issues but they are not understanding that.June 29, 2020 at 2:11 pm #7391odyseeRegistered Boarder
Mr Goodman, in your view is it a matter of serious concern that such a vast sum is being written off or current assets being written down by 869 crore? In all these years, no indication has ever been given of such a possibility. Or is it possible that the proposed consolidation of the subsidiaries is necessitating this adjustment as 100% shareholding was acquired in each subsidiary individually. Not clear on the accounting aspect of this. But the word ‘impairment’ across all subsidiaries is baffling. I’m sure Mr Reddy would have noted the very troubling comments on this forum and is taking urgent and immediate steps to clarify the situation. All loyal long term investors and stakeholders deserve a quick response to set their minds at ease.
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