[odysee]

I have just noted a post on the Telegram BCG investors group, that confirms the visit of a shareholder ( Mr Hitesh Agarwal) to the BCG corporate office in Hyderabad, and a meeting with the CFO Mr Raju. He has reviewed the audited financial statements of the 4 major subsidiaries and has confirmed that the figures are in agreement with the summarised financial data provided by the company in its Annual Report for financial year 21-22.
This is very reassuring indeed.

[odysee]

`@vgsatwork, I would suspect that this too falls in the same category as the situation vis-a-vis Sarita Commosales.
But maybe one could request BCGLTI to check and re-confirm if really necessary.

[odysee]

Thank you very much @BCGLTI. This clarification will settle a number of uneasy minds.

[odysee]

@BCGLTI, thank you for the clarification. It should set minds at ease now.

[odysee]

@Rathi_b, thank you for the visit to BCG offices and the detailed post.
However, I believe that the key issue of inspecting the audited accounts of the subsidiaries was not accomplished on this visit. This is an extremely important exercise to establish credibility and reassure investors who have expressed doubts in the past. Whilst we on this group remain confident and convinced, there are many who have been sceptical about the audit having being done vis a vis the subsidiaries.
You have mentioned that this verification exercise will be conducted soon. The management has clarified that the audited accounts are available for review by visiting shareholders.
Many thanks for your efforts.

[odysee]

A matter of great concern to all of us should be the steady drip by drip erosion of the market price on a daily basis.
What can possibly explain that? Whether the markets are up or down , the trend appears set and irreversible for the current moment.
What will change this? I cannot imagine that the management of a company that talks of being investor friendly and speaks proudly of the increasing number of retail investors on a quarterly basis, can sit idly by and watch the wanton destruction of its goodwill, reputation and market capitalisation, and be unmoved by the desperate questions being raised by the investing public as to what the heck is actually going on?
Can anyone provide a rational or reasonable answer to this devastation that has and is taking place?
Of what use are these sterling quarterly performances of the business when the corporate governance appears to be seeking new lows?
What exactly has the management done to reassure the investors and stakeholders and the markets that this miserable stock performance is abnormal and unjustified, and strong measures are being put in place to repair the damage done and restore the confidence that was so evident a little over a year ago.
There was a time ( prior to the FA fiasco), when any negativity was promptly countered with positive press releases or notification to the stock exchanges that would neutralise any market damage.
What explains this current lackadaisical form and deathly silence?
You will all recall that brilliant conference call, many moons ago, when all the ducks had been lined up, and the spectacular show was about to begin, with the promise of the first grand finale by March 2023. It did begin as promised, but somewhere down the line the plot was lost.
It is not just the business that has to be managed well- the sentiment and image have to be managed well too.

@Rathi_b, we trust you will be able to convey our thoughts and sentiments to Mr Reddy, as and when you are given that opportunity.

[odysee]

@Rathi_b, have you had any success at getting an appointment with Mr Suresh Reddy at the BCG office in Hyderabad?
Many thanks in advance for your response.

[odysee]

Don’t disagree at all @akkithegrt. I am a strong proponent of the company meeting its statutory obligations and being completely transparent in all communication with stakeholders.
The auditors’ reports and related financial accounts for all subsidiaries must be uploaded on the company’s website earliest. Just providing the summarised financial results of each subsidiary annually is totally inadequate and does not fulfill the moral and statutory requirements.
Since the full data has already been provided to Deloitte and SEBI, there is no justification in withholding the same from the public, notwithstanding the sensitivity indicated in the conference call pertaining to the Daum settlement.

[odysee]

@akkithegrt, all subsidiaries are audited. The audit reports and audited accounts of the subsidiaries have not been uploaded by the company on its website although they were provided to Deloitte and SEBI in relation to the ongoing FA as per the last conference call. Hopefully that will get rectified in the not too distant future.

[odysee]

@Logan, you have raised some excellent constructive points and suggestions that merit an immediate and considered response by the management in a purposeful manner. And that too sooner rather than later.
I suspect that laziness probably had nothing to do with these issues not being addressed, as the management team appears to be working 24/7. But certainly the importance and significance of such matters didn’t find immediate resonance with them.
You are absolutely right in that we all need to communicate urgently with the company and investor relations to give topmost priority to addressing these shortcomings in the Annual Report of the company, which would provide so much clarity to the investor community at large.
Thank you for raising all these important issues once again.

[odysee]

Unfortunately, there are no real certified analysts tracking BCG.
The only ‘professional analysts’ we encounter are on the Moneycontrol board.

[odysee]

@Logan, the prospect of a retail investor representative being appointed on the board is pretty dim in my opinion for the precise reasons you have indicated for it being a non-starter.
But we can still hope to see a market savvy professional of repute coming on the board who can steer the management in decision making and market sensitive communication techniques.
In your post prior to the last one, you had very aptly and appropriately pointed out the lack of data pertaining to the Daum settlement and the new prospective Audio tech acquisition with regard to amounts, timelines and name in the case of the latter.
As regards the FA, I would keenly look for the regulator’s comments and ruling on the impairment of assets policy, as well as any adverse comments if any on the truth and fairness of the results of the subsidiaries , as all books and entries for multiple years upto 31.3.2020 would have been scrutinised.
The imposition of some penalties or fine is pretty much a given as you have mentioned in relation to deficiencies in compliance issues related to reporting etc. But we shall see what the meat of the report is.
Fingers crossed 😊

[odysee]

Spoken from the heart @Logan, and laid out as it is. The truth, I suspect, is pretty close to your reflective comments on the various points you have touched upon.
The last paragraph expressing appreciation of some regular management action like timely conference calls took the sting away from the gentle ‘slap on the wrist’ comments in preceding paragraphs.
I would not be so forgiving though about the apathy displayed by them in the gradual but steady deterioration in sentiment currently prevailing among the retail investor community.
When you choose to be a public listed company, and you publicly applaud the quarterly increase in the number of shareholders, quarter upon quarter, then you are seriously obliged to address the retail investors’ apprehensions and concerns where they see a steady erosion of the value of their investment for no visible or obvious reason.
There are enough speculative comments in various fora that are mostly trash, but some could well be closer to the unpleasant truth of deliberate neglect of a deteriorating valuation that could benefit a few at the cost of many.
Many have touted the payment of the final dividend by the due date as an indication of good corporate governance. I would temper that by saying that it is only in compliance with law and the rules and regulations in force. If they had completed the distribution well before Diwali, then it would have been a positive indication of the building up of that third pillar you have referred to.
It is never easy to reverse the perception or reality of ‘erosion of trust’. But it is the bounden duty of Mr Reddy and his team to do just that.
Enough of this bleeding of the trust and consequent erosion in value.
We ( the company, promoters, shareholders, stakeholders) deserve better!

[odysee]

@sac6310, my understanding is that Mr Reddy had indicated settlement of Daum by the ‘next’ quarter. I presumed then (and now) that he meant the quarter after the September quarter as the statement was made in the middle of the 2nd quarter during the conference call. It would be a bit harsh to call this non-fulfilment of a timeline promise.

[odysee]

@Sobha, before 28th October, but after the brouhaha caused by the bonus credit delay, we may be pleasantly surprised by an early payout. At least that is my hope as it may soothe some ruffled feathers on account of previous dividend delays.

[odysee]

Could not log in either. Did try for quite a long time.
Can they not introduce an easier methodology for the shareholders to participate?
Disappointed!

[odysee]

Thank you @Logan for preparing the queries for Admin to forward to IR for the AGM. All very relevant and topical.
I would, however, seek an update on the FA if any further developments have indeed occurred.
It would also be very interesting to learn of the current position of foreign and domestic institutional holdings, as well as new renowned players that may have made an entry or are contemplating doing so.
My policy of not watching the stock price daily has proven to be a complete failure as a monthly glance shaved off a third of my peace of mind.
Logan and VALUEBUYER001, I share your concerns on this matter and am completely bewildered by this unjustified
continuing price erosion.
Nonetheless, hope remains eternal in the human breast🤞

[odysee]

@vkshare789, Sumeshnair2005 has answered the questions posed by you.
The September 30th SHP when released would shed more light on the respective holdings. I personally am not overtly concerned with whatever may have transpired. If some disclosure shortcomings have been there, then the promoters will have to deal with those whenever necessary.

[odysee]

@vkhare789, your question is not clear.
When you ask “Are we even going to get those shares back?”, who exactly are you referring to?
The company cannot possibly pledge its shares -only shareholders can. The promoters in their individual capacity or a promoter entity can do that usually to borrow funds with those shares being provided as collateral or security. The pledged shares if returned on settlement of dues or the loan, would revert to the individual or the entity.
The lender may sell the pledged shares if the borrower is unable to return the funds within the agreed time frame although this is an exception rather than a regular practice.
The company is not involved in this transaction at all.

[odysee]

What a superb performance by BCG in the first quarter.
The guidance for the year in all probability should be met if not exceeded.
The relentless and unstinting hard work put in by Mr Suresh Reddy and his outstanding team of committed professionals deserve a standing ovation from all of us.
Admin, Logan and the others who have unflinchingly stood by the company and kept their faith -take a bow.

[Author]

Posts