[Myshport]

Reference the Economic Times article given in #7686, which clearly states that the case cannot be taken up with NCLT when it is already being dealt with by DRT.

This should have been cited by the company’s lawyer in the hearing on 09 July, 2020 at the NCLT.

Some one close to the management needs to bring this to their notice as it will help solve the Axis Bank issue in the DRT.

[Rathi_b]

But in the order it states that they are keeping the money untouched in the account until DRT comes to a resolution.

[Rathi_b]

Anyways I think we should just be patient till the end of August for the good news to start trickling. I’m hopeful that waiting till September or October would be very fruitful and after that I think the realisation of the stock value will start to happen. Long game ahead and it is just a matter of time till the shorters exit the stock. My intention is to atleast be patient atleast till March.

[Rathi_b]

*Atleast be patient till March.

[Logicalspeak]

Refer #7686 & #7701,

The Allahabad High Court ruling mentioned in #7686, in which it is seen mentioned that same matter can not be processed parallely in NCLT and DRT. But that stated Allahabad High Court ruling is not brought to the notice of the JUDGE by BCG in NCLT before the INTERIM ORDER DATED 09-07-2020 of nclt.

Therefore, it is better if some one inform the management about the same so that BCG can bring it to the notice of nclt much before next date of hearing on 28-07-2020.

[profile inactive, exited bcg]

@Saul Goodman
I really wish you would do that when you find some free time; I mean the debate with @singhanoop1985 😀

[Logan]

@Logicalspeak, I think we should inform the company about this. We all should send them mails with that article’s link attached, they still have time to go through the process and I’m sure it will help the lawyers in their arguments.

[odysee]

Dear Saul, forgive me for coming on this thread but I had to refer to your comments at #6936 dated 7th June 2020 on the earlier write-off of Rs 150 crore by BCG which had adversely affected market sentiment and resulted in a huge fall in the stock price.
Is the current impairment/write down of Current Assets by Rs 869 crore odd not a somewhat similar situation albeit on a much larger scale? The management has put out an explanatory note as we have all seen, but it does beg the question as to how this wasn’t picked up in the preceding 4 years since it was explained that potential impairments are evaluated /considered every year on an ongoing basis as per BCG established practice.
Should Mr Reddy have given a more detailed explanation spelling out that it will have no adverse impact (if so) on the business operations and profits going forward? And how has the balance sheet as on 31.3.2020 been impacted and in what manner considering he stated that it was to provide a healthier Balance Sheet?
I can understand that with the consolidation of 12 subsidiaries and the audit thereof, a clean start is needed as also to obtain the new Line of Credit , but these niggling concerns are bothersome, and I would greatly appreciate your considered views and thoughts on this particular issue. Best regards.

[Myshport]

Refer Message #7708

I have sent the following email to the company

Ramesh Sharma <rnsgss@gmail.com>
6:23 PM (1 minute ago)
to ir

For kind attention of Mr SK Reddy,
Founder, Chairman, CEO and MD
Brightcom Group

Dear Mr Reddy,

I had earlier sent you an email suggesting a foolproof method of settling the DAUM issue. I wonder if you have seen that email and are seriously considering my suggestion.

I am now writing to you with regards to the case filed by Axis Bank in the NCLT.

I am a member of the Brightcominvestors Forum and there someone put up a link to the following article published in the Economic Times of 11 September, 2017. The link to that article is https://economictimes.indiatimes.com/industry/banking/finance/banking/high-court-disallows-parallel-proceedings-in-nclt-and-drt/articleshow/60457703.cms?from=mdr
High Court disallows parallel proceedings in NCLT and DRT

I have also read the NCLT order dated 08 July, 2020 as given in https://nclt.gov.in/sites/default/files/July-Interim-Order-pdf/Doc045861.pdf

The mere fact that the NCLT has “… taken up the complaint for hearing as an urgent matter”, clearly indicates the concerned members of the NCLT were not aware of the abovementioned High Court order, although your Counsel had submitted that “When similar petitions are pending before multiple forums, doctrine of res subjudice applies, and thus, the question of urgent hearing of IA No 181 of 2020 does not arise”. From this statement it is obvious that your Counsel did not quote the High Court ruling on the subject.

Therefore, I recommend that the NCLT be apprised of this ruling to enable them to deal with the complaint, accordingly.

Regards,

Ramesh Sharma

[lycos.rags.to.riches]

@odysee – It doesn’t matter much now, as we never recovered after the 150 crore write off and a series a of bad news which followed.
With current market sentiments on BCG, Management has to take few investor friendly decisions to gain market confidence, Even after getting LOC and solving DAUM issue.

This time around market panicked when OAK’s shares came out in the open even though SKR assured that a buyer has been arranged and investors need not worry about it. Management cant afford to make such mistakes.

[Logicalspeak]

As an investor since more than 7 years, I am posting the below as per my pure inference as I could infer during the last 6 years price demolition by an organised price manipulators gang. I am not sure whether the same is having the consent of promoters or not,thought.

The price was apparently demolished artificially to the lowest ebb many times during the above period, but any body can see that the promoters did not increase or decrease their holding ( the slight decrease post 27-05-2020 is due to preferencial issue. Whereas, the holdings were increased and accumulated under bodies corporates, NRIs and substantially under public holding more than 2 lakh rupees share capitel (more than one lakh share of rs 2/- face value).

All the above are like open check or demand drafts which can be readily encashable when price reach its intrinsic value.

Any body can see the share holding in public category under one lakh shares in reducing. Particularly if compared SHPs of March 2020, 27-05- 2020,and June 2020 ending SHOps.

The above clear fly shows accumalatio by big investors under public catagory including all the above stated groups.

There, when we see promoters not increasing or decreasing , all this orchestration of demolishing the price apparently may be due to the reasom that company may be a potential take over/acquisition candidate by any big world player at international level valuation which can be e billion dollars or more ( roughly 6 to 8 times revenue). In that scenario one can derive the value off share price and all accumulated share at low demolished price can be e ncashed by the concerned parties at intrinsic price/value at they appropriate time when it comes.

That me pay be the reason company is making the balance sheet healthy and making debt free and global auditing and consolidation of subsidiaries etc and the LOC can be only a ploy or it can be real also.

The above is purely based on my inference/ imagination and reading in between the lines and I HAVE NO PROOF , WHICH MAY ALSO BE NOTED.

[Logan]

@odysee (#7712), I’ll share my views/opinions and they may not be accurate.

My understanding is this, the bank loan write off that BCG did few years back is totally different from the current asset impairment and that’s because the assets that BCG impaired were in BCG’s control but the assets that BCG wrote off years back were loans taken from banks and that was not in BCG’s control. No matter what, the money has to be repaid to the banks or else they’ll have to face criminal charges but with the impairment they need not pay anyone anything because they don’t have any debt other than the standalone one (Axis). They may take a small hit in the short term but Mr.Reddy said that doing this will help them in the long run.

(The bank loans were taken by LGS as working capital loans and they didn’t collect it back from their clients and BCG had to write off those receivables. If LGS hadn’t taken that loan amount from banks and instead if they used their own money then that wouldn’t have hurt BCG).

As you said, they may have done the impairment to have a clean start with their consolidated subsidiary and the amount is huge because they’ll have to merge all the subsidiaries and of course the assets of those subsidiaries and that may help them to get the LOC.

Since I’m not an expert on accounting, I can’t go deep into it. Someone with accounting knowledge can help us with this or we all should ask the management to hold a conference call to discuss mainly about the business aspects or we can ask them in the AGM.

I don’t know what effect this has or will have on market sentiment because right now the market is more concerned about OAK selling and the recent NCLT episode. Also, the sentiment towards stocks that went up recently is also bad, stock prices of Alok, Ruchi Soya, Birla Tyres and many other companies are also falling and this may have an effect on BCG too.

[VALUEBUYER001]

I feel operators have blessings of promoters.it is their allies only

[sandyc316]

Does anyone have any idea if the OAK selling is over or how many shares are still pending? Is there any place that we can look that up?

[buffet]

@logicalspeak I wish the same. So many hanging swords over our company like multiple litigations, debt, pledged shares,huge write-offs, daum & mainly lack of investor community trust. Not sure how long it would take to come out of these dark clouds. SKR may be gr8 product manager, but when it comes to market he seems newbie. All his efforts looks petty however sincerely he is doing.

This time we had gr8 rally & momentum. Oak selling in open market & big write-off came as shocker. It gave operators readymade fuel to lit the fire. If SKR wants, he can file defamation cases against these miscreants & bring them to knees. Even publicly announcing legal proceedings would deter many.

[Logicalspeak]

All the investors who have gone through the edited ten script of concall of 02-07-2020, would have seen the CEO mentioning repeatedly at number of places that they have some future plan with the company. This was mentioned in context of trimming the balance sheet to make it more healthy, again inthe context of global audit and again in the context of consolidation of 12 foriegn subsidiaries etc.

Though at innumerous occation CEO TOLD VERY SPECICALLY that they are having a practical future plan but hidden what that future plan really is.

The same also can be inferred from the fact that they are already working jointly with one of the large glogal internet player (is it google or any others) in the field of AI in medical field).But CEO catagorically did not mention who is that large global player in internet.
Recently google announced they are going to invest rs 75000 crore in India as part ofIndia’s digital push and google also announced that this will be including investments by buying equity and by other means (again don’t know whether can be taken in BIG co test.

Therefore above along with my preveous message, it is only my inference and by reading between lines, that BIG IS a potential acquisition/take over candidate by any of the large global player in internet b ussinuss, possibly.

Again for substantiating the above, I have no documentary proof or evidence with me but purely my inference during last many years

[Logicalspeak]

Please read as ‘ a particular future plan’ instead of practical future plan in second para above. Similarly please read as ‘in BCG conrext’ inthelast line of third para. Similarly read as ‘BCG’ instead of BIG .

[VALUEBUYER001]

Sandyc316 I heard oak selling 90 lakhs balance to be sold

[Logan]

1>

@Logicalspeak,

On acquisition, BCG works with all the major internet companies regularly. The nature of the ad tech industry is that all the ad exchanges are interdependent. We should remember that Google is also an Ad tech company, close to 70% of their revenue comes from ads so BCG will regularly work with Google. Also most of the Fortune 500 companies are their clients.

Regarding the AI project, my understanding is that Israel is the hub of innovation. All the big companies partner with Israeli companies for different things. The big company provides capital and the Israeli company may provide the technology. If you see Israel is the number 1 country for AI, cyber security etc so all the big players have invested there. Apple, Google and other companies working on autonomous cars have invested heavily in Israel.

BCG has a big presence in Israel, even the AI project that they did was by their Israeli team. So, working on AI with a big company won’t be anything new for them and that may not have much impact if you’re talking about acquisition.

[Logicalspeak]

@Saul, the inference/ presumption mainly comes from the fact that,

Promoter not increasing inspite of the lowest price many times.

No buy back done by the company at lower level.

Small investors holding ( less than one lakh shares category) progressively reducing. By now their holding might have come down to less than 2 Crores shares. By SHP as on 30-09-2020 it may further reduce.

All the issues faced by company, it appears deleberatly kept 99% complete. The same appears to be for the completion of ousting the small share holders further to the maximum extent.

[Author]

Posts