[m4max1979]

@JRS I understand it is your analysis. I just wanted to understand the rationale behind your analysis. That being said if you are adding up the large domestic and NRI investors along with body corporate entities, it comes to around your figure of around 29%.

[m4max1979]

@JRS correct me if I am wrong but do you mean that goenkas hold nearly 18% of total shares…..if yes then I would disagree…as per latest SHP AKG and UNO hold 9.98% and Rajesh Goenka holds 2.6%…..assuming a couple of other goenkas hold less that 1% shares then total would be around 14-15% of total shareholding. I actually doubt they have increased their shareholding by a lot…..its more likely that they have shuffled ownership and consolidated under AKG/UNO and one individual.

And for the part regarding finding stable investors for BCG being top priority for SKR, I think it is complete crap. I do not understand one thing, why would a retail investor leave the scrip when it is making him/her money. If the company really has value then big investors would show up even at book value and more. I think this is just one of his excuses for future when investors ask him what happened to their investment. As has been stated multiple times, his priority should be to close legacy issues and focus on business….rest would take care of itself.

[m4max1979]

Wait till 9th October, if BCG files a reply in NCLT court instead of a settlement with Axis then I am afraid this issue would linger for a long time no matter what SKR says in concalls. Beginning to believe now that the Naysayers were right all along.

[m4max1979]

@hw_tw……NO this is not a possible option. NCLT does not assist in OTS between parties. It has to make a decision on what amount BCG is liable to pay based on its liability and how to recover it based on the security available with Axis Bank.

[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.

[m4max1979]

I think now the only option BCG has now is to close issues at the earliest and keep the investor community updated. Vested interests can only play this game till there is uncertainty. That is what they are trying to do now. If you see, the perception they are trying to build now is that even if issues are resolved, big players would not let the price go up and the company would have to bring in big institutional investors to stabalize the share price. Now I want to know whay would there be volatility at these prices if issues are resolved. It would just not be there as nobody would want to sell, hence the perception being created now that it is better for retailers to sell now and buy when the prices go to 2-3 which will never happen in my opinion.

[m4max1979]

Hey Guys I know the current cmp is frustrating to all of us. However, I still believe that it is a matter of a few days and all issues will begin to get sorted out. Beginning with Axis settlement this month, followed by LOC in October and Daum settlement before November/ December end. I think Axis will surely be done.

LOC and Daum are interlinked now so if one happens then the other will surely happen. I know promoter took a big U turn when he said that Daum was on hold and would be paid from LOC as against his earlier statements that he has the money to pay daum, they just have to come to agreeable terms. The way I look at it, BCG management is trying to use the money kept for Daum for business, if they can hold off Daum for sometime then I guess they would invest cashflows into business in this election year and try to increase revenue as much as possible.

[m4max1979]

If Axis Bank closure is on the cards then it has to happen on or before 30th September. The reason for this is that once settlement is not done by 30th, Banks are no longer in a hurry to settle till next quarter end as they do not have to report these numbers before quarter end.

[m4max1979]

I know its a bit late for this but one thing I have noticed on this and some previous conference calls, some of the retailers who ask questions appear so arrogant. Either they do not have a decent command over the English language or they do it deliberately, I don not know. Case in point, the conversation between promoter and participant who insisted that company should fire the investor relations personnel and the conversation regarding timeline for LOC. I feel that the same points could have been asked more tactfully.

[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.

[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.

[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

[m4max1979]

I was asking about T2T because I feel that issues would get sorted very soon and with regular circuit filters in place, the increase in cmp would also be fast giving less chance to manipulators to play their games here.

[m4max1979]

@lycos.rags.to.riches, I would prefer that the management just focus on getting issues resolved and get LOC at the earliest. With elections coming up in US, BCG would miss a golden opportunity to increase its revenue significantly if LOC does not happen in short time.

I know that with the Axis and Daum issue looming over their heads it would be very difficult for and lender to lend working capital. However, I am sure that if any lender has given an in principal approval then it cannot be without knowledge of the above mentioned issues. I hope they sort out everything well before US elections.

[m4max1979]

Does anyone remember when BCG was put in T segment and any idea when it would be out of T group?

[m4max1979]

No updates on nclt site till now.

[m4max1979]

Pls share the link to new shp. I cannot see it on website.

[m4max1979]

Could you please add a few questions from the financial results published for March quarter if they look reasonable.

1. Reason for auditor making a remark regarding irregularities in payment of
statutory dues and income tax.

2. Standalone financials:
1. What is the provisioning for bad debts in net trade receivables of
Rs. 216 crs. Last year the provisioning for bad debts was Rs. 7.4 crs

2. Name of institutions for long term borrowings of Rs. 99.37 crs

3. Consolidated financials:
1. Which entities have been given loans of Rs. 652.59 crs mentioned in current
assets

2. What is the breakup of “Other current assets” and why has it reduced to
Rs. 157.4 crs in FY2020 against Rs. 540.6 crs in FY2019

[m4max1979]

Can somebody throw some light on the write off of current assets of Rs. 868.3 crs in subsidiaries? Is it related to lycos or something else we were not aware of?

[m4max1979]

I think that NO management would announce any dividend if it has an OTS pending with a lender. Hence I feel that either company has already paid off Axis or has understanding with them on when and how much to pay in order to close the loan. Pls correct me if I am being overly optimistic or am entirely wrong in my understanding.

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