[Rising Sun]

The entire management was involved in this scam, including the independent directors, Peshwa, Sateesh, and other board members. So better to keep no expectations.

I am surprised, why SEBI is still expecting management to do things. They will remove more money from the company, and try to hide more wrong doings.

The management team is just buying time to do patch up work.

[Rising Sun]

Looking at the current situation, only solution is a representative team taking over the office operations of Brightcom Group. Considering all the acts the management has done, SKR or Promoters are not even to be considered as shareholder. They issued shares to themselves and own companies for free and diluted.

Peshwa, Cheeti, all other management team, and may be the board members too are hand in glove. Peshwa was also alloted shares in preferential allotment, but now he doesnt hold any shares.

People are talking about various things, but this is what needs to be done. Some shareholders with high holding combined, should take over the operations. Any funds lying in company accounts should not be under their control.

This is a serious issue.

[Rising Sun]

Hello Everyone,

If someone is making a list of points to write to management or gets an ooportunity to talk, please do ask the following questions. If anyone has answer to the below questions please do reply. Thanks.

1) What is the current cash balance with the company? Last update I know the balance was around 1500 crores. Why the funds are lying un-utilised and why cant the same be transfered to India company – where decent interest can be earned. Like, I doubt we need 1500 crores for growth.
2) Last year the company was reporting operating cash flows of over 250 crores per quarter, but this year it has come down significantly despite increase in sales.
3) An important question needs to be asked is about inter company loans. All the funds raised by Brightcom have been sent to subsidiaries overseas – In return when the companies generate cash, the loans need to be repaid back. But in case of brightcom, they are receiving a token 5 crores dividend, while huge amount of loans remain unpaid.
4) Management says that we will get back our shareholding in every conference call. A clear question needs to be asked, when will they get back the entire 18% (to make it 36%) shareholding lost due to sale by financing companies. The FPI’s and Prominent Investor have also been given an exit at price of 34-36.

There is no doubt whatever is happening in Brightcom- be it movement in share price, sale of pledged shares, inadequate reporting about funds is all intentional by the management.

The company needs to appoint a reputed auditor, or-else it will be a big red flag about the management intentions.

If people at this forum have information about any of the above points please do reply.

Thanks.

[Rising Sun]

The average buying price of lakhs of investors is more than 40, 50, and many cases 60 and 80.

As everyone knows, the number of retail investors increased from 1 lakh to 4 lakhs.

Hence the feeling of being cheated, as all the close associates of management (LLP’s) have sold.

[Rising Sun]

Only thing which can lift market sentiment is over 250 crores buyback.

The management claimed last year that the Company is able to generate 250 crores of free cash flow every quarter.

This year, with increase in sales the free cash flow is expected to increase.

With no acquisitions planned, the management should consider open market buy back of a huge amount. Anything less than 250 crores will be like peanuts. Like how they announced 5 crores dividend.

The management has claimed cash balance of more than 1200 crores at December end, which after the most busy season and highest amount of Debtors. They said, they will have very high cash flow this quarter (as it would be cash flow of Q3 + Q4).

Investors want to know:

1) Where is the money?

All big talks are a waste, if they cannot show the money.

2) Who is doing the audit of Brightcom Books?

Given that the current auditor is hand in glove with management of making money (46 lakh shares alloted to them must have been sold long time back).

Whatever SEBI has done is right. As there are clear indications of indirect insider trading.

[Rising Sun]

There are some key questions also relating to the funds which the company holds in its subsidiaries:
1) Why they don’t earn interest by investing in short term money market funds. The interest rates are so high across the globe.
2) Can the company not just submit a certified bank statement showing the bank balance across subsidiaries?
3) Why will the LLP’s sell their shares, if the same doesn’t need to be acquired by another party on the other side. I am sure all the LLP selling is as per planning done by SKR. Because they have themselves acquired stake by buying LLP’s.
4) Why has the management not got back the pledged shares back as yet? When will they get it back? Who can sleep well if 18% of their stake is sold by brokers/financing companies to whom you have pledged.

Regarding the cashflows:
1) Considering the growth of 40% in the past 1 year, the estimated cashflows of 250 crores should have also increased. But the same is not evident since the past 2 quarters.
2) Earlier once the company had presented a Debtors statement, and mentioned that 100% of the receivables are valid and no provisioning was required.
3) No discussions are being done on the cashflows part since the past 2 quarter conference calls.
4) If I am not wrong, they had recently reported 1200 crores cash balance (Quarter ending September 2022) + around 100 crores in quarter ending December 2022. Management also said the current quarter cashflows will be high to include the cashflows of the previous quarter too. May be we will have cashflows of around 400-500 crores. This all will take the total balance to around 1800 crores.

Please correct me, if I am thinking on the wrong side. Of course all this is valid, if the company has real business, and SKR has control over the funds at subsidiaries.

Lastly, I would like to mention my understanding on the price fall:
1) Nobody believes in the cash balance reported by the management.
2) LLP’s selling shares – which has brought down the price.
3) Investors loosing confidence, and hence no buyers when the prices fall down.
4) I sincerely doubt retail investors are doing this volume.

Whatever is happening is known to the management, and their close people. This is for sure.

We just need one answer:
When will the pledged shares come back to promoters holding?

[Rising Sun]

Hello Everyone,
I may be wrong but my understanding is that the prices are down or have been kept down due to the mystery 18% promoter shareholding which was pledged, with some financial company or brokers. Hence the liquidity and resulting volume of shares. Why has the management not taken back the shares from the brokers? The pledge was for a very small fraction of shares.
If this mystery is solved then, hopefully we will get all the answers.

[Rising Sun]

I believe the Bonus will be positive for existing shareholders. As the dilution of equity stake of existing shareholders will be lower.

Earlier – around 50 crore shares (current shareholders) + 30 crore PW

With Bonus – 62.5 crore shares (current shareholders) + 30 crore PW

Meaning the equity stake of existing shareholders will increase.

Share numbers are rounded off, for easier understanding.

[Author]

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