[Myshport]

Just two points from my side that, I strongly feel, need to be addressed by the company. These are as follows.

a) Corporate governance, adequately highlighted in the Forum.
b) Investor Relations Department needs to be “Investor” friendly. They must, at least, show us the courtesy of an acknowledgement to our emails.

Will be obliged if these are taken up, strongly, during the upcoming meeting with the management.

[Rathi_b]

I broke my phone today, admin I’ll be sending you a new number please send it to @satenna. Apologize for the inconvenience.

[JRS]

This is frustrating, I really don’t understand why they don’t respond to Retail investors mail.
Actually more than a loss or anything else this attitude is irritating.

[Rathi_b]

Admin please check the mail I’ve sent you the details of my contact. Please kindly forward it to satenna

[admin]

Hi Rathi, have forwarded your new number to sateanna. Thanks

[Rathi_b]

@odysee it’s amongst us only, not with the anyone from the company.

[hw_tw]

BCG has just launched a new website for Blocal…Check out Blocal.news

[JRS]

The price is sending rattles in the market!!!!

[hw_tw]

Axis bank had sent an asset sale notice to BCG last year Dec 6th…Please check out the details Link

Some clarifications from this document. Sorry for my limited knowledge. I am not able to connect the dots well. Just wanted to see if someone has better understanding on this matter

– It looks like the loan is taken in the name of multiple parties and BCG is not the only party. In this case does BCG has to pay the full amount? If not how much percentage does each party contribute.

– Who are these other parties. Apart from Suresh Reddy and Vijay Kancharla there is no other known face. Are they from LGS

– Two properties were put on sale. Has this event happened. If so how much money Axis has recovered from this sale. Is the 16cr part payment includes this recovered amount or something else

– Are there any other assets mortgaged for this loan. Like promoters ple dged shares. If so, how many. And why has Axis not sold these assets.

– A general question and not related to this document. Can’t BCG tranfer this loan to other bank and have a better payment terms instead of fighting it out with Axis. Is this option possible and feasible at this stage.

– Again a general question specifically for the Retail Investor representatives. Could you check with SKR, What he meant when he said Logistics Issue.

[JRS]

I feel we should move the Ministry of Corporate Affairs(MOCA)and PMO, and complaint against the irresponsible attitude of BCG towards public especially for not responding to any mail.

BOD and Management should be made accountable for the panic situation that is created in the market by keeping the investors in dark on the kind of manipulation that is happening in share price.

Some people will misuse the patience of the investor, and everything should have its Own limit.

I strongly condemn BCG for taking investors for granted.

We should write a letter to 1) PMO
2) Ministry of Corporate Affairs
3) SEBI
undersigned by “all serious and stressed investors” complaining this attitude of BCG management towards investors and type of manipulation happening.

We as investor without being blindly biased should clearly understand “Managing Business is different from Managing Investors” and both should go hand in hand, we cannot keep praising the management only for the business, of course we respect their efforts.

It is like comparing India to China. In China the economy growth may be tremendous but people have no voice in anything, In India the growth may be slow but we have voice and kept informed on everything through RTI except for strategic decision which is concerned with National Security.

Public limited company is like India a Democratic institution and Investor should have respect for their Voice and things has to be kept transparent at least when requested ( excluding the strategic decisions involved in business ) .

BCG May be doing wonders in the business, but keeping investors blind is not acceptable and we should condemn it strongly by using available institutions (PMO, MOCA and SEBI) as instruments to exercise our powers.

[Logan]

@hw_tw, the loans that BCG has/had are not traditional loans. BCG had ots (one time settlement) with all the banks and the company has paid down almost all the debt except a small amount with Axis (almost 220-250 crores have been paid and 8-10 crores are remaining). Since these are ots, I don’t think these can be transferred to other banks.

The loans were taken by LGS and it’s promoters gave surety and when BCG bought LGS the responsibly shifted to BCG and it’s promoters so shares are pledged.

There are/were disagreements with Axis on the final amount to be paid. BCG first paid SBI and Canara and I think the final date to pay off Axis ots expired so Axis went to DRT and NCLT to put pressure on the company. I think the other names in the list are LGS promoters. Don’t know why Axis has mentioned LGS promoters in the list.

In one of the conference calls, Mr.Reddy said they stopped Axis from putting properties on sale.

Even in NCLT, I don’t think Axis has mentioned anywhere to put properties on sale. They’ve mentioned the PO money.

[m4max1979]

I am beginning to suspect that either Axis backed out on settlement or gave a terrible offer to BCG because of which settlement did not happen and is not likely going to happen anytime soon. And since Axis has a considerable amount of pledged shares, operators are taking the price down in order to ensure Axis does not dump the shares in secondary market.

I have no proof for my theory and I hope I am proven wrong, its just one of the scenarios that keep getting in my head. If BCG management had been even slightly forthcoming and transparent, such doubts would never come to mind.

It is so frustrating at times when I think that investors like me are going through so much pain and anguish because BCG could not pay a meagre Rs. 8-10 crs last September to Axis.

[nitin_asce]

The situation is pretty clear and let me explain. OTS are generally approved only when the repayment capacity of the company is not there. So bank has to agree on OTS and otherwise auction the mortgaged properties. But generally you don’t get the requisite amount due to people bidding lower than market price due to legal issues involved.
Now here SKR collected rights amount approximately 30 crores and the it’s deadline has passed. Now the loan amount is around 35 crore and settlement amount is around 10 crore. Now bank sees that right issue amount and thinks that bcg has capacity to pay. If anybody approves lower amount then he may have to face corruption charges. So they might want court to decide on the amount.

This may be one of the theories. Otherwise SKR might also be delaying the settlement.

[hw_tw]

@admin, for some reason my message is not getting posted. I am not getting any error message as such. Not sure what the exact reason for this. So, I am trying it again by removing the hyperlink

Thanks @Logan for connecting these dots

I could find another old notice dated 06th Feb 2019 from Axis Bank

Some interesting points to note from this

– This notice was also sent to the Directors of BCG …Raghunath Allamsetty, Jayalakshmi Kumari etc… But I guess this is not mentioned anyware in Directors Report

– Between these two notices the interest kept getting accumulated. This is still looking like a normal loan and not a OTS. I guess in case of OTS there will be a fixed amount to be settled within due period and there wont be any continuous interest

– In both these noticed Axis Bank seems to be clear on amount due as principal + interest and hasn’t mentioned anywhere about OTS of 26cr

[hw_tw]

@Logan – Regarding the other names, yes you are right. Venkata Subba Rao, Venkateswara Rao were MDs of LGS Global. I guess Bollepalli Venu is also part of LGS.

Interestingly LGS Global website http://lancoglobal.com/ is still up.

Note it doesn’t mention upfront that Ybrant has acquired LGS. We need to check the news and investors section for these details.

Don’t know the reason for keeping this up for such a long period. Is this an regulatory requirement or is BCG still doing some business under this LGS brand.

Another question is who is actually paying back this loan LGS team or BCG.

If it is BCG, why LGS team hasn’t objected for sale of their properties or why their assets are still mortgaged even after the acquisition.

If it is LGS team, why hasn’t BCG objected the same before NCLT and allowed Axis to hold their PO money.

Can it be both. Is this possible. If so, what will be split. How much percentage each party has agreed to pay.

[admin]

@hw_tw – You are right, when a link is added, sometimes it goes to spam. This is done by the auto spam detection feature, which unfortunately does not notify the user. If it happens again please write another message asking me to check so that I can unspam it. Thank you.

[Logan]

@hw_tw, LGS was already listed and BCG reverse merged with LGS so its not a traditional acquisition. All the responsibilities were transferred to BCG’s management when the merger completed. The loans were taken by the company and not by the promoters so even if there’s a change in management, the company has to pay off those loans. So, BCG, not LGS, has to pay off the loans and they have been doing it since 2012-13. You have to give something as collateral so promoters have pledged their shares.

This is the case when a company (ABC) acquires (merges with) another company (XYZ). ABC will taken on XYZ’s debt also.

I don’t know why Axis put LGS promoters’ properties for sale but that was stopped by BCG’s lawyers. So whatever discussions that are happening are between BCG’s management and Axis and LGS promoters aren’t involved.

[lycos.rags.to.riches]

@m4max1979 i agree with your views. i also assume that SRK buying shares was to assure that share price is going to come down in coming weeks, but i am buying at a higher price, so nothing to worry.

SRK’s way of resolving issues is really hurting the company.

[VALUEBUYER001]

SKR SKR SKR SKR suresh kumar Reddy

[drjaysee]

Dear Friends, appreciate if anybody could confirm the current EPS and Book Value of BCG pls. It shows different values in Money control and BSE website. Thank you

[Author]

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