[Logan]

Some people are expecting a lot in today’s board meeting but looking at the past trends, we shouldn’t expect much from it. They’ll just appoint one of the three independent board members of BCG on board of BCG’s subsidiaries. I’d be surprised if any other item will be discussed. And of course they’ll share the outcome after midnight.

They should have some seriousness and should start caring about shareholders (caring and understanding shareholders’ pain instead of giving unwanted bonus shares)

[Logan]

People made fun of me when I said that negative market sentiment (because of DAUM, debt, corporate governance) and selling by PE, VC investors were the main reasons BCG crashed back then and we are seeing similar thing happen again. Now the market sentiment is negative because of FA, SHP (and of course corporate governance) and the selling by PW allottees and the multifold increase in free float because of giving bonus twice.

If the PW allottees hadn’t sold their shares the stock price wouldn’t have been at this level and it would’ve been above 30 or 40 or 50 (at least above 20). The same case happened when PE investors dumped their shares. I’m not supporting the promoters/CEO/Management but what I’m saying is that it’s very important to analyse the market sentiment towards any company before and after investing. Howard Marks has written a whole book on market cycles and sentiment. Even Mr.Shankar Sharma had said that the market only focused on BCG’s negatives and totally forget the positives. All these factors influence the share prices.

When there’s news like FA, SHP issues and when there’s a SCN issued to the company, no one will get the confidence to buy shares. Total number of investors increasing is not a valid point. They are buying the shares that are being dumped on them and not the shares which are in demand and hence their buying doesn’t increase the stock price.

The inaction by the CEO is the reason for all these. He gave big number of shares to traders who didn’t care about the company, it’s investors or it’s valuation and just dumped their shares when their lock in period was over.

I’m the biggest supporter of buyback and recently I had said that buyback (or ESOP) will not have much impact on stock prices because FA verdict was still pending but now the verdict has come, the company should consider those options. I don’t want them to give dividends this year and instead buyback shares. I’m sure many investors will agree with me. Last year total dividend paid was 60crs and let them use the same amount to buy back shares. At this price they can buyback more than 6 crore shares.

[Logan]

The problem is that the promoters and the management lied to us for over 8 years which shouldn’t be taken lightly. How do we trust them in the future? They’ve been promising better governance and communication for years but we’re hardly seeing any improvement. Stock prices falling and rising is part and parcel of the investing process but building trust is the most important factor. What’s the use of growth in the business if there’s no improvement in governance (compliance and communication included)? That’s like having a very good car with an empty tank.

I respected the CEO because he and other promoters (and management) have built the company from scratch with their hard work but my respect for them is decreasing day by day because they not only destroyed their credibility, name but also the company’s name and reputation with this SHP issue. Some people say that the promoters didn’t disclose the actual SHP because of the threat of a hostile takeover but what I think is that it’s all because they didn’t want to show anything negative about their company. They do stupid things that obviously bring negativity but try to hide it for sometime and when people get to know that, it’ll reach a stage where positive things never get highlighted and only the negative things appear. Who suffers when the promoters do this? It’s so easy and obvious to answer – shareholders who have invested their hard earned money trusting the promoters and the management.

DAUM issue started a few years before the CEO told the shareholders about it. It was shared only when the issue got very serious. Everyone knows what happened later. The same with the Axis Bank case. They didn’t disclose the case for months. It doesn’t matter if the issue is big or small, what matters is being honest and informing the shareholders immediately.

Companies that have committed crime and others which have huge losses are trading at higher valuations than BCG. If BCG’s management and the promoters don’t wake up now then it’ll reach a point where nobody in the market will take the company seriously. Market hasn’t taken the company seriously because one or the other issue comes up every now and then. Last year we thought the betal (like the betal in Vikramaditya and the betal) would leave our backs forever but the FA issue came and then the SHP issue. There’s no breathing space (or time) for shareholders and it always feels like this rollercoaster ride would never end. Our anxiety and stress keeps increasing each day.

Only a somewhat positive thing (I don’t like to say it as a good thing and defend them) is that they didn’t sell the shares themselves and also the shares weren’t sold at the peak. It was easy to guess that the shares weren’t sold at the peak (after January 2022 that is, when the company last reported the previous SHP) because the data didn’t support it. The total volume traded was way less and no way all the promoters shares could’ve been sold in that period (January end to March end). Again, I’m not supporting the promoters here but some people without checking the above obvious point were saying that promoters dumped all their shares during that period (January end to March end). Self proclaimed experts just to show their hatred towards the company even wrote about this in various channels without checking properly.

SEBI’s report shows that the shares were sold in the last 7-8 years. I don’t know whether SEBI will accept the company’s explanation on this. Let’s wait and see.

I think we all should ask the company to hold a conference call once the legal processes related to the SCN are done. Promoters and the management have a lot to answer and the sooner they do that, the better it’ll be for everyone. We all can’t go to Hyderabad just to get clarification every time. They have to respect the shareholders who have supported them through thick and thin. The CEO talked about this in a conference call and also when he gave the second bonus but both were not meaningful enough. He has to show that in his actions and should walk the talk.

[Logan]

@chris, there are many types of investors who have different views, one group says that the market is always efficient and that it can never be wrong, one group says that the market is not always efficient and that it can be wrong frequently, some people think that they know (or can know) everything about everything, some people think that they can know everything just by looking at the prices of different stocks, while other groups think that they can never know everything about everything and try to research and analyze as much as they can.

Legendary investors like Warren Buffett, Howard Marks, Ben Graham, Charlie Munger etc say that the market is not always efficient and it can be wrong many times. Ben Graham said that “The stock market is there to serve you and not to instruct you” which was repeated by Warren Buffett. Also, Warren Buffett wrote something similar in the recent shareholder letter.

“One advantage of our publicly-traded segment is that – episodically – it becomes easy to buy pieces of wonderful businesses at wonderful prices. It’s crucial to understand that stocks often trade at truly foolish prices, both high and low. “Efficient” markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect.”

Today Mr.Shankar Sharma mentioned this in one of his tweets – Market is not always rational or logical. In fact, rarely so. But we must strive to be.

I subscribe to the above thought and will say that the market can’t be right all the time and everything looks easy in retrospect. Before talking about others, personally I also know that I can’t be right all the time and making mistakes can’t be avoided. Whoever says that they are right all the time and can know everything about everything is not just fooling others but they are fooling themselves. A broken clock can be right twice a day and they focus only on those two times ignoring the rest of the time when they were completely wrong. Last year when the forensic audit news came, it was easy to guess where the price would go until the audit was finished. Some “experts” took that obvious point and projected themselves as heroes.

I support the CEO or the management on things that they have been good at and criticize them on things that they are bad at. I’ve never supported the CEO on corporate governance and in fact I’ve always been critical of the company on that part. I have criticized the CEO on corporate governance, investor relations and communication, disclosure part more than any other person. I’ve supported him when it comes to the business part of the company.

There are 3 main observations of SEBI in that report, the first is related to impairment, second is the SHP, and third is compliance, disclosure related. All 3 come under corporate governance, especially the second and the third points. I or anyone can’t say SHP, communication, investor relations or compliance all the time and we mention corporate governance instead because all those come under that.

What some people want is that they want everyone to be like them and criticize the CEO or the company on all aspects, its either yes or no for them and there’s no middle ground. I can’t criticize or hate someone just for the sake of it. Nowadays I’m not sharing my views or writing frequently because of 2 things, one is my health issue and the other is that I don’t want to argue with someone and become their enemy. Suppose I support the CEO or the management on one topic and criticize him on other topics, some people will concentrate only on the first part and completely ignore the second part and they hate me for that.

When it comes to self-proclaimed experts who know everything about everything and who are active on social media, ask them about BCG and they say that the biggest issues are the name changes of the company and BCG subs not being audited. The second part is addressed by the forensic audit report and also the company has shared the audited results (not completely though). Regarding the first part, they don’t even understand why the company changed its name few times. USA Greetings was a publisher which had content and when the company moved on from that and started back-end services, it couldn’t use USA Greetings because people would’ve thought it as a greeting card company which will be a publisher or as a content provider and not as an advertising network company and you will be limited to working only with greeting card companies (online greetings card that is and look at the growth of adtech vs online greeting card business). So, they don’t want the company to focus on its future, business and moving into a business that has tremendous future but want it to stick with the declining industry and go out of business just to keep the old name. And these people are supposed to be good at everything and have the best judgement.

And when it was changed to Lycos, that time the Lycos brand was bigger than Ybrant and you could get more clients. Even though Yahoo was acquired twice and at one point renamed to Oath, after it was bought by Apollo, it was renamed back to Yahoo because of the brand name. Yahoo is still active and big in adtech and people will recognize Yahoo more than they recognize Oath. Coming back to BCG, before Lycos case final verdict had come, BCG had started Brightcom (concentrating on the futuristic programmatic advertising) and most of its brand was changed to that or came under that and after the final verdict came, it had no choice but to lose Lycos and give up that name. It either had to rename itself as Ybrant (which brand the company was using less) or use Brightcom name which got traction and popular in the adtech industry? The answer is simple. There are many instances where companies have changed names for various reasons and you can’t call them fraud or fake just because of that.

Self-proclaimed experts know everything about everything, any topic you mention, they’ll tell you the history, mystery, future etc and they know everything about all the industries more than experts or people who have worked in that industry for decades but when it comes to basic common sense, they can’t understand what’s going on. How can the company keep Lycos name and not change its name when it no longer holds Lycos and when it was directed by the courts to give up Lycos? Will DAUM be okay if the company makes money using DAUM’s subsidiary name? Will the courts allow it? Won’t DAUM sue the company if the company refuses to give up Lycos name?

Also, more importantly, everywhere BCG mentions that it was previously named/known as Lycos Internet. In the annual reports, other documents etc they mention that they were previously known as Lycos Internet Ltd. Why would a company who’d want to hide their past by changing name want to mention their previous name in everything and everywhere?

Genuine investors research about companies for months or years but our self-proclaimed experts do it in seconds just by looking at stock prices and name changes. Investors should be careful when they follow self-proclaimed experts, not just for BCG but any other stock/company. There are some people who come with biased view without even understanding the basic concepts. If anyone has any problem then they should talk to managements of the companies they have invested in and if they don’t respond then they should approach SEBI or the exchanges.

[Logan]

All these have happened because of the CEO’s character. He’s someone who doesn’t want to talk anything negative about his company but does things that put the company and it’s shareholders in trouble.

What could’ve been cured by a bandaid now looks like it needs a surgery. How much ever bad things have happened in the past, he’ll never learn from that and in fact finds ways to complicate easy things. The decision not to disclose the actual promoter holdings is one thing which he and other promoters had total control of and because of their negligence and careless attitude, we investors have to suffer.

If things continue this way then no serious investor will even look at the company and will laugh if the name is mentioned. The management and the promoters have to follow whatever sebi has ordered and should work hard to improve corporate governance.

[Logan]

BCG has shared this notification regarding the show cause notice.

Dear Sir/Ma’am,
In response to the above Show Cause Notice issued to the Company and its key officers, the
Company hereby, wishes to inform its stakeholders that:

A. The Regulator has made certain observations in this Show Cause Notice, the main
ones being:

1. The Company had taken impairment charges in its balance sheet for FY 2020,
Amounting to Rs. 868.30 crores. The honourable SEBI has observed that, as per
accounting standards, these charges should have been taken through the P & L
statement, and not through the Balance Sheet & that by taking the said (non-
cash) charges not through the P&L, the profits for that period have been
overstated.
2. The Honourable SEBI has also made observations that the shareholding pattern
of the Promoter holdings in the said period, were not rightly reported.
3. There are other observations on compliance & reporting done by the company.

B. We have taken on board the observations stated in the detailed report.

C. Both BGL (Brightcom Group Limited) and the Nominees have noted the directions
offered by the Honourable SEBI.

D. The company is taking legal advice with respect to the overall matter.

E. The company and its key officers will, respectfully, respond to the said Show Cause
Notice, about its reasons for treating the impairment charges in a particular
manner, as well as on the other issues raised by the Honourable SEBI.

F. The company also welcomes this opportunity to strengthen its compliance,
accounting and disclosure standards.

[Logan]

Thanks @brightspot for sharing this. It’s really sad that BCG’s management still have not uploaded the same in the exchanges regarding this. They should give a clarification about this and should take all the necessary actions that sebi has suggested.

[Logan]

Since this is a forum for BCG, I didn’t want to mention other companies/stocks but looking at the sentiment, price movements etc this other company, Asian Granito, looks similar to BCG.

In that company also promoters reduced their stake, like FA, IT department raided that company last year, like DAUM legal case, that company also had cases against one promoter, fundamentals are good in that company, though not as good as BCG but not very bad too.

Last year because of increase in raw materials, fuel etc I think they had losses for 2-3 quarters (this FY). Whoever I’ve talked to (like tile companies, traders etc) says that the company is doing good in tier 2, 3 cities. And like BCG, last year they too raised money by issuing more shares and diluting the equity (through rights issue, I think more than 500 crs).

They’ve invested in new factories, started new subsidiaries, showroom, reduced a lot of debt, have good amount of cash but still the stock is falling. 4-5 years back it had reached close to 400 but now it’s in 30s range. From close to 400 it had fallen to 60-70 but after covid it went to 200 and after that because of 3 things (promoter selling, increase in costs and IT raid) its falling non stop.

This company has a decent growth rate in revenue and profits over the last 10 years or so (though not very high like it’s peers) but the market is not trusting the promoters.

What I’ve understood from this company, BCG and many other companies is that building trust is the most important factor in the market and once you lose that important factor then the market won’t care whether you have good growth rates or have good amount of cash etc.

(This is not a buy or sell recommendation for BCG or Asian Granito and I’m just sharing similar situations that both these companies are in. I have invested small amount in Asian Granito too but it’s mostly for tracking purpose)

[Logan]

The market/investors are frustrated with the management/CEO and their lack of action. Market will punish companies if they don’t act quickly and we are seeing it again in BCG. Last 2 years I thought BCG was finally coming out of all the mess but the same thing is happening again. Apart from the management/CEO’s negligence/careless attitude, the other thing that’s killing the company is the second bonus shares which was not at all necessary. When someone asked about this in one of the calls, the CEO said that you’ll thank me after a year or so for his decision to give bonus shares.

I sold only a little part of my holdings when the stock went up. My family members who had shares in my account completely sold their shares and I should’ve followed them. Now I’m regretting my stupid decision. As they say, you eat what you kill and I’ve to live with my stupid decision. And because of my health issues I couldn’t take proper decisions also. One side the business is growing at good place and the other side the stock is falling continuously. I think like me most of the investors have had this dilemma.

There is no one on the company’s board who is market savvy or experienced to guide the management. I thought Mr.Acharya would bring in much needed transparency but nothing has changed. First one month or so after opening the investor contact centre they picked our calls and replied to mails but now it’s back to the same again.

The next conference call will be in mid May or May end and before that I don’t think they’ll hold any investor conference call (even when we have requested multiple times) so I request @rathi_b and team to visit the office and check what’s happening. Sorry to bother you all again but we don’t have any other option.

[Logan]

For institutions to invest, the management has to initiate calls with analysts and fund houses. They should arrange investor/analyst meet frequently and answer all the questions asked by them. If you see in some companies they hold analyst meet very often but BCG’s management is careless or lazy.

I think (guess) analysts weren’t interested in BCG because of 2 things – lack of clarity on business and DAUM issue. There was lack of clarity because most of the revenue was made by foreign subsidiaries and also they thought BCG changed it’s business too often and pivoted to new business. This misunderstanding was because Ybrant was a digital/online advertising company but the name was changed to Lycos and analysts thought that BCG pivoted to other business. Later the company also started Lycos Life so that time also analysts were not sure what the management was doing. Later DAUM case happened and fund houses will stay away if there are legal issues in companies. And the important thing here is (as mentioned above) that the management didn’t put any efforts to meet them. They could’ve met and clarified issues had they met any analyst but they didn’t.

The ad-tech market and the information/data that is available now was very different 4-5-6 years back. The industry got good coverage mostly because of COVID and to an extent because of TTD’s performance. Even in the US most of the ad-tech companies weren’t covered by reputed analysts and only smaller names had covered. Also, here no other listed company was there and Affle though is in a different business, came to the market only in 2019.

(One example is that people now understand why the receivables are high in adtech companies. They are checking companies like TTD, Magnite, PubMatic etc and coming to conclusion but few years back it was different)

Business wise BCG is good but when it comes to image and transparency BCG should learn from TTD, Affle etc. Magnite also had few issues with it’s corporate governance and it also got punished.

At least now they should start meeting analysts and take initiative to bring in more active funds/institutions. Now is the right time to talk to them. They’ll not come to you even if you have good growth in the business and you should take the initiative. The business is growing and next year there’s US elections which is a big boost for ad-tech companies.

[Logan]

My suggestion would be that they conduct a special call like they did in January so that no one can point fingers at any particular individual or group. This way each and every investor can participate.

The topic of discussion should be limited to the stock price crash and what plans they have to improve the sentiment. Other topic should be on the SHP – they have to give proper details and tell us why it was revealed so late and no details have been released even after a year.

We all can discuss and come up with relevant queries and form a list of questions. Investors who get a chance in the call should also stick to those questions and don’t let him finish until he gives a correct timeline. For ex if DAUM takes 6 months let him say 6 months instead of saying very close (for 4-5 years he’s been saying that).

[Logan]

When I suggested that we should look at someone to represent retail investors, it was not to oust the CEO from his post but to have more voice and to make the company take investor friendly decisions. I think even Mr.Shankar Sharma will not agree to a move that will oust the CEO.

It’s true that the valuation of the company and the fall in stock price is because of his actions but we should not forget that the company’s business has grown to this level because of him. When other companies are struggling, BCG is doing very well. Only if the company does well there’ll be value else there’ll nothing.

The important point is that it’s easier to fix valuation related issues anytime, prices can go from high to low and low to high but it’s not easy to fix business related issues, especially in the ad-tech industry. Once your business falls to certain levels then it’s almost impossible to get back on track. Many companies have gone bust and even giants like Yahoo, AOL etc have struggled and sold to other companies. Few years back Google and Facebook were only the ones which very dominant but now even Microsoft and Amazon have become big. Even smaller names have fallen a lot, Magnite fell 90%, PubMatic 80%, Even TTD had fallen more than 60-70%.

The issues that BCG has (that are in management’s control) are fixable. Timing is the main factor. If they released the audited reports 3-6 months back then we wouldn’t have seen this much negativity. Had they issued bonus immediately, appointed CFO and CS at the right time and directly announced the JV instead of saying it was Acquisition at first then the situation would’ve been very different. It’s different when you need 100 runs in 60 balls, 60 runs in 30 balls and 30 runs in 6 balls or try attacking when you have 10 wickets remaining than 2-3 wickets remaining. The CEO doesn’t know when to play attacking and when to play defensive. He needs a good coach who can guide him. Sometimes it does look like he doesn’t care so that time the board member or the adviser too has to be strict.

Close DAUM issue, improve communication (corporate governance), don’t delay things like dividend, bonus, appointment of key people, give proper clarification on SHP, announce the JV plan as JV and not as acquisition. Tell us the truth – whether you will get the shares or not. If all these are done properly and in the future if mistakes aren’t repeated then the market will recognise the changes and give good valuation.

We should do as @ved suggested. First we should talk to him and make him understand our pain, concerns and frustrations and ask him directly whether he gives importance to all the above. If he doesn’t answer properly or if everyone feels that he’ll not improve then whoever wants to take necessary actions can take them.

In investing I’m more interested in the analysis part than being an activist. I studied the adtech industry for years and then only I started writing in the forum. I try to do the same for all my investments. Sometimes I study and then invest and other times I invest and then study. I can suggest steps but to execute that you need someone with good skills and management which I clearly lack. And I don’t think I can handle all that pressure and expectations with my current health and it’ll impact more negatively.

Let us request a conference call only for this i.e. let’s not discuss other topics and focus on sharing our pain and concerns.

[Logan]

@tanv151, @rathi_b and Hyderabad team,

What could be the reason for taking so much time to close the Lycos deal? In conference calls he says that there’s no issue but do you sense there’s something in it?

Do you sense it is like the Axis Bank case where they kept on wasting the court’s time and told us that it was almost done (for months) and closed it only when the judge told them (ordered actually) not to waste their time?

Lycos is old technology and there’s nothing exciting about it but closing it would mean the company gets a good image because the legal matter will also go away.

If you don’t mind and if you’re okay with it, please ask him whether he’s serious about the company’s image (and valuation) when you visit next time.

(Let us all ask him this question in the conference calls)

[Logan]

@kmr003,

I suggested Mr.Sharma only because he’s the perfect person for the job as he understands the business well and is an expert on market related things but I don’t think he’ll be interested. I don’t think he has been on any company’s board till now (Maybe he has but I’m not aware)

Appointing a board member is very hard and complicated because it involves many things and lakhs or thousands of people. We have to do everything in a legal way and should take sebi’s approval. We need to consult lawyers who can guide us. Who pays lawyer fees and other expenses?

One group may say that the appointed person will work only for the group that appointed him/her. How do we get almost every investor to agree that the selected person is right for everyone?

If it was a single entity (or a big investor) which owns good number of shares then fine as they appoint someone who looks mostly after that entity’s interests but with so many investors here, it’s very complicated.

Initially I thought Mr.Acharya coming on board and becoming an employee would change things for good but he’s also more interested in the business and technology and less interested in valuation.

My health has not been good since 1.5-2 years so it’s hard for me to take any initiation but I’m open to suggestions. We may have different opinions but we all want the same thing so we should forget our differences and come up with plans that help everyone and which is legal.

We all wouldn’t be talking about all these or taken this much stress if the management acted quickly and if they were shareholder friendly.

Right now what I think is it’s better to put pressure like investors did recently. That made the management to act quickly and release audited reports of subsidiaries. We should send thousands of mails to ir everyday, call them thousands of times which will irritate them and just to stop us do that everyday they may act quickly on many issues.

[Logan]

The main reason the market is punishing BCG is because of lack of actions from the management. Had they completed DAUM or released audited reports earlier or bought back shares, it wouldn’t have been this bad.

Securekloud which got a negative fa report and it’s CEO and directors were banned for 3 years in capital market has fallen less than BCG. That company’s management people have admitted to committing fraud.

Man industries, another company which is under FA is higher than the price when the FA was announced. It fell a little when fa was announced but is higher than that price.

BCG has done very well in growth yet it has fallen the most.

Even after sharing audited reports there’s no comfort. The reason is that the reports were shared too late.

Unless and until the management shows that they are serious about the company, the market will keep punishing.

[Logan]

Whatever we do, we have to do it in a legal way (with sebi’s blessing). So appointing a board members who looks after the interests of all the retail shareholders is the best option.

I’m not sure Mr.Shankar Sharma would agree for this but he’s the best person for this. He understands both the business and the market and understands retail investors’ pain.

[Logan]

In every conference at least one or two investors have asked about buyback and the CEO has replied the same. What will he say if we ask again?

Only way now is to convince the FPIs and Mr.Shankar Sharma to put pressure on the management. Apart from that I don’t think there’s any option.

Or appoint a board member who represents all retail investors. How do we find the right person ? Will all investors trust him/her? Suppose 1 lakh shareholders get together and legally (with sebi’s blessings) nominate a board member and what if other 3 lakh investors don’t like that person and disapprove?

Even if everyone agrees, who will take the initiative? What if the people who took the initiative to appoint sell their shares midway? Who pays the salary to that person?

It’s all complicated.

[Logan]

Different people react differently, some people try to put more pressure, some give up and stop putting efforts. We can’t expect everyone to follow the same approach. Everyone here is frustrated with the price and the attitude of the management but like I said before, we have done whatever we can (be it complaining to sebi, talking directly to management in conference calls, sending 100s of emails, calling numerous times to the IR, some have visited the company and spoke directly with the management). If all these hasn’t changed the management then there’s nothing else we can do.

[Logan]

If the company had a good image in the market and if the management had maintained good corporate governance and walked the talk then the market would’ve taken this type of news as a positive sign because BCG is a debt free company with good amount of cash on hand.

Due to crisis like this you get many companies or their assets for cheap and companies with good balance sheet can buy those companies or take their market share. Plans to acquire Mediamint and Consumable Inc were done during the peak of bull market and from that time valuations of most of the tech companies have fallen a lot. Though I’m no way supporting the management but looking at the valuations now, it seems like not buying MM makes a lot of sense as it’s a backend company. For backend you can hire few engineers (either freshers or experienced – now most will be available due to layoffs), train them for few months and get them to your speed. I’m not sure about the valuation of assets of Consumable Inc as it’s a private company but sometimes asset light model works during tough times.

BCG bought few companies during the global financial crisis and they are generating the bulk of the revenue. OMS was bought in 2008 for just $13M (less than 80-100 crores back then) when it was making $20M revenue (less than 150 crores) and now it’s making over 2000 crores revenue and profit of 400+ crores. BCG should find a company like that and acquire it.

Market is not liking BCG not because the company didn’t acquire any company but because BCG announced plans and then decided not to buy. If BCG didn’t announce then the market wouldn’t have been so sceptical on BCG.

Thankfully they released the audited statements of key subsidiaries (though not completely) and this should somewhat remove uncertainty around the financials of the subsidiaries. If all the issues are sorted out one by one (at the earliest) then the market will cheer the company. Everything depends on the management and their pace.

By the way, I want to thank all the investors for their efforts in making the management people to share the audited reports of the subsidiaries. Without the pressure from investors they wouldn’t have released those reports now.

[Logan]

Audited financial statements of 4 subsidiaries of BCG have been uploaded on the company’s website.

(I saw a post on MMB and checked immediately)

“The audit reports for the top four subsidiaries, which make up a majority of the consolidated business, have been made available. However, the reports for the smaller subsidiaries, which together contribute approximately 25% of the consolidated revenues, are still being processed for translations and other considerations. They will be uploaded in the coming few weeks”

Though the pages that contain the financial information have been locked, at least the opinions and remarks by the auditors have been added and they contain the signature of the auditors also. OMS/Brightcom Israel is audited by EY (as everyone knows) and the US subsidiaries have been audited by Ram associates.

The below is there on every page that contains financial information.
(As a prudent business practice, access to the financial information in this document is limited to in-person viewing at our corporate office during regular business hours.
The financial data can be correlated with the summarised financials of individual subsidiaries in our Annual Report for FY21-22.
Please visit our office to view the complete document.)

[Author]

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