[odysee]

Admin, this is not a post that I am putting up that may provide additional information but just an expression of my thoughts-I cannot for the life of me understand the price movement of the stock on our exchanges. It is intriguing, irrational, irritating and frustrating. At a stage when positive developments are gathering pace, what on earth explains this negative sentiment and trajectory?

[odysee]

Thank you for your balanced response , as always, @Logan. The troubling part is that small retail investors although large in numbers, have holdings which in total ( value and quantity) are not very significant as a percentage, but their actions have a profound impact on prices particularly on the downward side. Only a relatively smaller number of better informed retail investors, with possibly largish holdings, desire and expect actions that would bring stability to the stock price.

[odysee]

Thank you very much for your very detailed and patiently articulated views and thoughts @ Logan.
I guess we all just buckle up and wait for the ride to begin, whenever it does.
Incidentally, there appears to be no news on the NCLT case today. My expectation was that a settlement would be announced along with withdrawal of the case by Axis.

[m4max1979]

BCG again asked for more time to file reply. Hearing moved to 22.09.2020. Link is below

https://nclt.gov.in/sites/default/files/September/Interim-order-pdf/Doc079229_002.pdf

[odysee]

Not impressed with BCG’s actions. If they had already advised the stock exchange about a formal proposal to settle with Axis, post verbal discussions with the bank, immediately after the last NCLT hearing a few weeks ago, it suggested to the world at large that the matter was done and dusted barring the documentation. Asking for another three weeks and consequently delaying closing even the first of the few critical pending issues that removes the defaulter tag is indicative of poor management from the shareholders’ perspective.

[sateanna]

Axis probably the easiest to Solve amongst all the issues now, why are they dragging is beyond any reasoning Even the Daum issue there are so many ways to close. No news on LOC either. At least OAK exited on its own, else it would have been another stalemate. The pain of retail investors continues.

[lycos.rags.to.riches]

Friends, Resolution involves two parties, BCG has given the payment plan and Axis has to agree to the payment plan.

[tanv151]

@sateanna Absolutely. While we are all supremely confident of the business and it’s future, SKR’s lack of urgency in resolving issues has had a severe impact on the share price. It almost seem like he is deliberately deferring the resolution and/or on the below points.

– Axis – If an email was sent post consultation with Axis management, why is BCG still asking for more time, repeatedly? And why no communication is coming from the BCG management? What’s the point of issuing pref shares when you don’t want the get the money released (locked due to court order)?

– Daum – There were so many options given on by this forum members on closing this issue. They may not be the best, and SKR is smart enough to figure the best option. Even then it is still pending for ages now and no communication from him whatsoever.

– Consolidation – This has been going on for at least 6 months now. I really doubt a big audit house like BDO will need such a long time to help in consolidation and audit. Again, no communication whatsoever.

All these three points IMO are very much in control of SKR, be it in fixing them or communicating about them.

LOC – This may have some dependency as he needs to secure a party l, willing to provide the credit facility. Having said that, SKR can provide updates without waiting for quarterly Conf call.

Bottom line, it’s high time SKR stops downplaying Axis and Daum issues; fix them immediately. With SKR I don’t think it’s an issue with SKILL but WILL to resolve issues. It is disheartening to see the issues being dragged for so long.

[hw_tw]

What could be possible scenarios

– Axis rejected the payment plan offer. BCG is unprepared for this and so has asked for more time

– Axis is not satisfied with the payment plan and asked for changes which BCG’s legal team is working on. This could be either in terms of amount or timelines or payment guarantee

– Axis has not yet responded back to BCG

In all the cases, it’s on BCG to buy more time from the court.

I doubt if they will be able to give any update to BSE until they get a clear yes from Axis.

Anyway we will get an answer in the next concall and hoping that this matter gets settled even before that.

Note that the PO funds are locked till this matter is settled and so BCG will be trying it’s best to resolve this soon. I feel the delay would be possibly from Axis Bank side.

[odysee]

@lycos.rags.to.riches, your point is well taken, but in this particular instance, the verbal settlement appeared to have been arrived at with Axis bank. Please note the wordings of the communication sent by BCG to the exchange- “after due consultation with the officials at Axis Bank, the company has sent a formal request letter to the bank”.
This would suggest closure was imminent.

[lycos.rags.to.riches]

@Odysee I expected the matter to be adjourned, because consultation can be anything and not the actual payment plan.Axis bank could have just asked BCG to send a formal request letter and they would consider it, they could have asked for payment plan in writing, that doesnt mean they have accepted. I assume how banks treat their customers before and after taking loan. Adding to the irony Axis has upper hand now as they have blocked the preference shares money and BCG has to dance to their tunes.

Having said all this, i am still confused why are we in this position when BCG was already paying them as to the agreed plan, how can a management change trigger a change in the payment plan.

As usual issue resolution is taking way longer than expected, Some delay in covid can be accepted but business operations were back to normal by May, any further delay will be damaging to the already battered stock.

Agree with all clarification given by logan regarding business, market perception is due to poor management practices and corporate standards. To gain market confidence BCG need to periodically update investors about the various outstanding issues.

[tanv151]

@lycos.rags.to.riches as you rightly mentioned Axis Bank has a upper hand in this case. They have the best leverage as they were able to get pref issue funds locked through the court. SKR needs to realise the cost of lost opportunities on the back of this issue.

Additionally, Axis in their petition have clearly given the reasons for them to demand the entire amount as opposed to BCG not mentioning of any letter or email which confirms the OTS that was agreed before.

It is only in the best interest of the company to get this sorted asap as it will have a significant impact on the reputation of the company, from a India market point of view. I am struggling to understand why BCG council asked for 20 more days time.

[Logan]

Business wise LOC will fix cash flow issues and other problems (obviously not right away) but we need the management to make big changes in corporate governance and investor relations department.

Bring in someone with more market experience on board, they will guide the management on how to handle market related activities.

Then fire the person who looks after investor relations and appoint someone new, we need the company to reply to all of our mails (even if some are silly). Sometimes they should give proper information and sometimes they should simply reply saying “we’ll get back to you at the right time”.

(I’ve mentioned about these in the areas of improvement thread)

[odysee]

@Logan, despite promises at almost every single conference call over the years, Mr Reddy has time and again stated that one should send him a mail as he couldn’t at that particular point of time remember the exact figures (e.g. ageing of receivables), other important data points etc.
Not replying even once is very, very regrettable. The investor relations department is in any case in deep slumber for many years. What a sorry state of affairs. Amen.

[m4max1979]

Hi Logan, You really think that BCG will get an LOC? Look at the current situation, while BCG can say that Axis was a legacy loan, the current default by BCG is a default on payment terms agreed to by BCG and that too a very small sum considering BCG’s size and profitability. In my understanding, at least in India, no Bank would touch an account which has a settlement history and has been in litigation. With foreign Banks it is the same, in fact their due diligence is even more strict. So in my opinion LOC is not going to happen and BCG management would be wiser to make the most of the opportunity this US election year through internal accruals the way they have done before and have done a pretty decent job considering the cashflow limitations.

Having said that, I think that LOC would materialize in future BUT only a after a couple of good quarterly performances post consolidation of subsidiaries along with Axis and Daum closure. If I am to believe the promoter, they have money to close Axis and Daum without any LOC in place. For if that is a lie then God save our investment.

The problem with BCG is that none of the retail investors know the inside story and they are a lot of them in this scrip, some give the benefit of doubt to the company and sit patiently while others do the abusing on mmb and other forums.

[odysee]

I would like to add another point. There are certain responsibilities and obligations that are an integral part of any venture involving the public at large. If a promoter chooses to go public by inviting investors to participate in a business enterprise, with a stock exchange listing of that entity’s stock, then he is duty bound to protect and advance the interests of the minority shareholders and other stakeholders. If the promoter has a cavalier approach to the sentiments and interests of such minority shareholders, then he or she should never have gone for a listing in the first place , either via an IPO or a backward integration with a public listed company. Far better to fund growth and expansion through the private equity or/and the venture capital route, and let the business become strong and vibrant, before going for a listing to enable a decent exit if so desired by those players.
Given the current situation, we, the minority retail shareholders of BCG, are neither here nor there , caught between a rock and a hard place. Not an enviable position to be in.

[kmr003]

Please consider this points in next conference call

1) Priority issues are also dragged to extent, which will loose credibility of company.

2) corporate governance to be improved, this we had been telling from from last 3-4 years

3) On every conference call SRK informs, we are much closer than before, but none of major things sorted out,

And stopped giving timeline as never met before

4) we don’t want to repeat the same things again and again from last 3-4 years,
we require proper timeline or steps how BCG is working on this to improve

5) we should collective send email / bring this points in conference call

[m4max1979]

Not pointing fingers at anyone but I have not received reply to any mail I sent to investor cell over the years and in so many con calls I have not got a chance to ask questions even once. Maybe I am too small an investor for BCG.

[Shivashankar]

Testing too much patience and we should wait for a month atleast to get real picture it’s not too far I think.

[VALUEBUYER001]

Generally OTS is meant for loan defaulter.why bcg default in payment when there is profit in balane sheet. If I earn 100 rupee and invest in bitcoin or share market I should not beg anyone for ots or waiver for 5 rupees or 10 rupees.

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