[lycos.rags.to.riches]

I am sure management cannot explain their relationship in the open between them and the entity which is holding large amount of shares and constantly sell shares between themselves. I remember in one of the concall SKR said that he would not like to comment on the entity as it is open market and they can sell and buy shares whenever they want. But when he told a buyer has been arranged for Oak shares and then we realised that buyer was none other than same entity who were convinced to buy shares at higher price. Some nexus between all parties remains just that we donno whether it is good for us or bad.

[Logicalspeak]

@Saul, the anology that profit held up in receivables is not valid. If a company start businuss, the first year the argument is correct. But from the second year onwards that is not valid.

From second year onwards, simultaneously the earlier years arrears in recievable will be getting collected and an almost equal amount from current year will be held up in recievable and that will be nullifying each other. So from second year onwards the net net profit available with the company will be more or less equal to the net profit reported from second year onwards with minor variation if revenue for the particular year is more or less.

This can be seen from the fact that the number of recievable days are almost static with minor variation. Slight increase in recievable in rupee term may be due to dollar appreciation against rupee.

So when number of recievable days are almost constant during many previous years, the net profit reported also will be available with the company in all the previous years. So company during past nearly six years made net profit of nearly 2000 Crores, which must be available with the company for usage.

This also can be compared with the recievables of nearly 700 Crores or so six years back and after six years from there, now it is slightly more than THAN 900 crore. The increase in recievables during past six years is only to the tune of slightly more than rs 200 or 250 crore which is due the revenue increse, otherwise the number of recievable days are almost static with minor variation.

So if deducted that increase in recievables of approximate rs 250 Crores during the past six years from the total net profit of approximate 2000 crore , company had the remaing 1750 crore profit approximately during last about six years absolutely at their disposal.

Therefore company have to clarify the deployment of that money, where ever done in detail to tally the above approximate figure.

In successive annual report they are showing intangible asset under development, simultaneously each year they are writing off the intangible assets of preveous years almost every year with out any clarity. In that area also management need to clarify regarding what intangible asset they developed as well as those intangible asset they written off in many a years.

I am not claiming all those are not genuine but investors need clarity as since about a decade they are no more running a private company but this is a public listed limited company.

[Rathi_b]

Change the circuits, it will help.

[odysee]

@Logicalspeak, your comments in #7738, it would be very important to scrutinise and study the cash flow statement for each year as that would show the deployment of funds for the various ventures/ investments and upgradations, repayments etc and net free cash flows available, despite the very handsome annual profits declared. Then explanation can be sought for those deployments and the status thereof currently, particularly if they are revenue generating deployments or ‘experimental’ in nature which could require a write down or impairment if not productive.

[Logicalspeak]

@Saul, I think You have not properly read and understood my post/message at # 7738.

I did not express any doubt on companies numbers or recievables figure. Recievable figures are almost in tune with the capital rotation cycle in the business and are almost static with minor variation due to currency fluctuation and revenue variation. Therefore there is no issue at all in that and No clarification also required. I request you to read my above post once more, you will know I did no express any doubt in their numbers or recievables.

[Logan]

@Logicalspeak, I was speaking generally and my response was not directed at you (Only the first para was my reply to you). I understood your post, no problem with that. I should have written 2 separate posts then we wouldn’t have had this confusion.

[Logicalspeak]

In my message #7738 , my point was if the rs 1750 crore net profit actually available with company in cash during the last six years if fully reinvested in digital ad side alone and by considering capital rotation cycle of 3 times a year their revenue should have been more more than rs 4000 crores by now. But it is far less.

The above means, most portion of those preveous years profit money was channalised in different other purpose. In this context only I expressed doubts on company’s each year spent on intangible assets under development and simultaneous write off of preveous year spend on intangible assets? without any increase in revenue.

This was going on quite a number of preveous years without yielding any tangible result or revenue or profit due the channalisation of company money.

This can be verified by anybody from company’s Annual Reports of many preveous years published by the company in public domain with out any proper clarity regarding, what are those intangible asset shown as under developments in year spending and also what are those written of intangible asset which were written off in each preveous years whith out any clarity.

IN THE ABOVE circumstances , any investor or analysts who track the company naturally will have doubt whether any syphoning of company’s money is happening or not, particularly this ordeal is never ending for many years.

Please note, that I am not claiming any fraud, but only request clarity on those aspects,

[Logicalspeak]

In my post#7744, the last but one line of first para may be read as ‘more than rs 6000 crores by now’.

[admin]

Hi @logicalspeak – If there is any such doubt please request you to have a zoom call with the management or even better pay a visit to their office. You can then share the outcome here for everyone’s benefit. Discussing such matter here will not do any good other than raising anxiety among others . I request everyone to use the forum for knowledge sharing on the business aspects rather than speculating things. I agree discussions are necessary but only when there is some important events to be discussed.

[Logicalspeak]

Dear Admn, Your point is well taken. Even I do not want such discussion but it is the result of replying to the reply to my message.

[odysee]

I would add @ Logicalspeak, that with the consolidation of the overseas subsidiaries, and international auditors/ accounting firms involved now, there are unlikely to be many grey areas which would require management explanations and clarification going forward. I would imagine that a thorough scrutiny and review has been conducted by the management in the last many months, of the assets and liabilities of all entities in the BCG embrace, and with the assistance and guidance of BDO Global or other reputable firms, most suspect or ‘iffy’ items would have been eliminated to reflect a much healthier balance sheet. This , I suspect, would be an ongoing exercise annually.

[admin]

@logicalspeak – Thanks for understanding. I am not against discussion as such but at some point I do have to intervene.

This forum is also visited by new investors as well who may not be acquainted with BCG. I wish they take time to understand Brightcom and do not get carried away by the the discussions by senior members. Have to see that it goes in a balanced manner. Long term investors should be aware that at the end we are responsible on how the market sentiments is generated.

[VALUEBUYER001]

Hope axis bank loan closure is done at the earliest

[BBPopuri]

Some one posted in Money Control that BRIGHTCOM and BRIGHTCOM group are different. On visiting the BRIGHTCOM website I found the only thing common is the emblem. Request knowledgeable members to clarify.

[admin]

Hi @PBB – Brightcom is not a company but a brand managed by Online Media Solutions Ltd. Israel, which is a subsidiary of Brightcom Group (100% ownership). OMS was acquired by Brightcom Group in 2008 for $13 M. Please check the investor presentation for more details , mainly the Company Timeline & Company Structure slide.

In the Brightcom site please also check the privacy page to see the subsidiary name.

Privacy Policy

Please do not believe folks on MMB 🙂

[Rathi_b]

Axis bank closure likely to take a few more months. He is just trying to fight for a reasonable amount of payment. Axis is claiming more money and he is doing what he should do in court, I’m confident about that.

[VALUEBUYER001]

SKR may be forced to pay within a month

[sateanna]

Axis bank should be done & dusted quickly. This is also like Daum prolonged for a fair bit expecting a few crores benefit. Management needs to clear the legacy issues asap to restore confidence of investors and by looking at the future business. Lot of time effort & money has been wasted on these.

[Raj]

Sateanna, you are right. Just for few crores, he’s just playing with the share price.. If axis was solved, the share could have been easily reached to 30. Nice game being played here to panic retail investors..

[Logicalspeak]

@Raj & @ Sateanna,

THE price had a vertical free fall during around 2012 and 2013, due to International Arbitration Award (ICC award) in favour of daum nd subsequent approach by daum to NYC court for its confirmation.

It was due to dumping of shares by foreign holders, to whom BCG (then ybrant) issued shares and raised fund before that, and acquired many foreign subsidiary companies in different countries with that money. They being Foreign funds,know about the developments of ICC award and Nyc court case for confirmarion etc.

Thus a major portion of the dumped share came in the hands of public and HNI investors at low price. A main point apparently happened and to be remembered here is that the ICC AWARD AND NYC COURT case etc were not promptly informed to the Indian investors or Indian stock exchange by the company ( that time only it was listed in BSE through reverse merger). It was after few years, when knowledgeable investors rigged deep and came to know about it and company apparently very late after passage of much time (may be few years later) disclosed to BSE and investors officially about those developments overseas.

THUS company had many compellsions for apparently not being transparent and thereby company’s market camp reduced by more than one billion dollars then (at the prevailing exchange rate then). Still price appears to be at lower level apparently due to many orchastrations and obvious methods and reasons.

Now, all those vexatious problems are apparently over and behind the company. The achievment of company’s market cap to the Intrinsic value in comparison with its foreign as well as indian peers, and its achievement is only a natural process over a foreseeable period bot will be slow and steady but it is certain to happen, as all the problems are getting solved and only wonderful times are ahead (the intrinsic market cap to be achieved may be in 2 to 3 billion dollars if we compare the p/e ratios of foreign as well as indian listed peers of the company, regarding which many discussion happened here by many other boarders as well.

Therefore, the investors buying now are the luckiest lots as they don’t require to undergo the ordeals went through by long term small investor. SImilarly, the investors selling now will be the most unfortunate lots particularly the ones who invested for a long period of time). Traders and very small time investers can please ignor.

[Author]

Posts