[tanv151]

Two things caught my attentions. One is reduced number of pledged shares. There must be a strong and good reason why SKR and Vijay got about 2.17 Crore shares released. Other one is there are 20 lakh shares locked in, under the NRI. I believe these belong to one of the persons who will be allocated pref shares.

Pledge shares have been reduced from 61.89% in Dec to 50.22% , of Total promoters holding.

Vijay Kancharla reduced pledged shares from 62.04 to 45.92%

SKR reduced pledged shares from 62.19 to 46.53%

[tanv151]

Thanks VB Ji for getting it validated. On a separate note, someone I know has written to the investor relations at BcG regarding the pref issue and the investor relations got back with the below response just last week.

“Due to the slowdown of operations at NSDL & the Exchanges, there are some operational issues in the required documents which we were about to receive from NSDL.

On receipt of the required document from NSDL, we shall submit the same to NSE and get the approval which is awaited – Not Cancelled.

We will inform the Exchanges, once we receive the approval from NSE.”

[tanv151]

Saach Ji, if you check Brightcom in the NSDL website you will find three line items and two of them are active ISINs. I shared info on one of them, and here is the other one.

If you notice the face value on this link, it’s 2 rupees. So it is the ISIN for the existing shares. We all know the preferential issue has been priced for 10 rupees, which is why I strongly believe the details on the first link I shared pertain to preference issue.

I request everyone to review and correct me if I am wrong.

https://www.nsdl.co.in/master_search_detail_res.php?isin=INE425B01027

[tanv151]

Found something on the NSDl website. Looks like the application for issue of pref shares?

https://www.nsdl.co.in/master_search_detail_res.php?isin=IN9425B01017

[tanv151]

Thank you for your email.

With respect to your query on in principal approval from NSE, there were some additional queries from NSE which were already addressed by the Company and it is in the pipeline of getting approved.

As you are aware of the situations due to Covid-19, the operations have been slowed down and there occurs the delay in getting requisite approvals.

We shall intimate the same to investor community once approved.

[tanv151]

MCA is reflecting Canara Bank Loan closure.

[tanv151]

It appears that Brightcom is featured on March edition of Corporate India magazine. Check BCG page on FB.

[tanv151]

As per my understanding, any party buying/selling more than 2% of the stake in a scrip, in a quarter, is required to notify the exchanges of such action. Everest did that too, so we can expect OAK to notify provided our assumptions come true, and they go beyond 2%, which should be around 1cr shares.

[tanv151]

If SKR keeps up his word (fingers crossed), we should see the investors invite going out in the next 3 days, followed by Preferential share issue by March 13th.

[tanv151]

Absolutely right, no guarantees in the market. SKR May give a surprise news in May that they have now identified a global auditor but thy will review the financial statements for FY 20-21 and we need to wait for May 2021 to see that report. Everything is assumption and a possibility until SKR makes detailed and decisive announcement. Even government organisations work with some timelines, not sure why Daum is given so much time to respond on the agreement.

[tanv151]

Pls share the link. I couldn’t see anything on the BSE website

[tanv151]

@Lycosmaniac, I am with you. May 2020 timelines has been repeated so many times that we can’t help thinking there is some motto behind it.

If someone has some solid info to back up the May mantra, pls share as it will help all of us.

[tanv151]

I received the below email as a response to my email this morning.

‘Thank you for your email, we truly appreciate it.

We have noted down all your questions which will be answered in Q3 FY20 conference call.

Further to the shareholders’ request, we have scheduled for a 2 hour conference call this quarter wherein, we can have enough time to discuss in detail.

Regards,
Manohar

[tanv151]

What do you guys think about the below format and questions? Please feel free to make edits to make them crisp and concise, as needed.

Repayment of Bank Loans:
1. Why the Canara Bank loan closure is not updated on MCA? Are you planning to do it? If yes, by when?

2. You have been conveniently not providing any details on the pledged shares since May 2019. How many shares were pledged with these 3 banks and how many were released? What are the remaining pledged shares for and when will those be released?

3. Why the notification given by Axis Bank about sale of properties was not informed to the shareholders?

Preferential Issue:
1. Why are you raising only 30 odd crore rupees?
2. What are the other financial obligations that you need this money for and why those details are not provided to us?
3. What was your criteria in selecting these 3 parties to issue the shares?

Restructuring of subsidiaries:
1. Name of the legal advisor?
2. Name of the audit firm performing global audit and what is the date of completion?
3. Have you identified the party who will finance us based on receivables?

Daum Settlement:
1. What is agreed settlement amount? And details of repayment plan and where will we get that money from?
2. On what date the agreement copy was sent for Daum‘ review and what is the deadline given to them to respond?

[tanv151]

I believe it is not fair to assume that only those investors would create noise who have bought the share at higher price. I think for how long one has invested in, plays a key role as well.

Everyone is entitled to interpret the situation in their own way. My humble request is not to keep posting the same messages again and again. Admin has done a great job by creating this forum for us to share our views, so let us use it to contribute/ bring in new info that will help all of us. No one can and should impose our views on others.

If one thinks it is wise to wait for few more months, there is nothing wrong in it as it is that person’s view.

Similarly if one thinks Feb end is the deadline for him, that is fair as well.

Cheers

[tanv151]

I am failing to understand the reason for not disclosing the audit firm’s name. Let us all understand that disclosing the auditor’s name is not as same as White Oak funding. No one can stop any company in appointing an auditor, per my understanding.

On the audit report, I have no reason to believe we will get the audited results by May unless you we get the confirmation of appointment or engagement letter that clearly states the new auditor will be reviewing the financial statements for the year 2019. I will wait till the Conf call in a hope that SKR will come out with detailed updates, and decide the next course of action.

[tanv151]

I still have not received any response to my email. I have sent a reminder again and below the questions.

To,
Suresh Kumar Reddy,

Mr. K. Rajesh, Investor Relationship Officer

Mr. M. Manohar, Company Secretary

As one of the shareholders I seek your confirmation or response on the below points.

Repayment of Bank Loans:
1. Why the Canara Bank loan closure is not updated on MCA? Are you planning to do it? If yes, by when?

2. You have been conveniently not providing any details on the pledged shares since May 2019. How many shares were pledged with these 3 banks and how many were released? What are the remaining pledged shares for and when will those be released?

3. Why the notification given by Axis Bank about sale of properties was not informed to the shareholders?

Preferential Issue:
1. Why are you raising only 30 odd crore rupees?
2. What are the other financial obligations that you need this money for and why those details are not provided to us?
3. What was your criteria in selecting these 3 parties to issue the shares?

Restructuring of subsidiaries:
1. Name of the legal advisor?
2. Name of the audit firm performing global audit and what is the date of completion?
3. Have you identified the party who will finance us based on receivables?

Daum Settlement:
1. What is agreed settlement amount? And details of repayment plan and where will we get that money from?
2. On what date the agreement copy was sent for Daum‘ review and what is the deadline given to them to respond?

[tanv151]

Good to see some updates given by the management. I sent an email to the investor relations this evening. Below is the matter.

If you think these questions are valid and we need get confirmation, do consider sending an email from your end as well. That way we can give some direction to the updates SKR will provide in the upcoming call.

To,
Suresh Kumar Reddy,

Mr. K. Rajesh, Investor Relationship Officer

Mr. M. Manohar, Company Secretary

As one of the shareholders I seek your confirmation or response on the below points.

Repayment of Bank Loans:
1. Why the Canara Bank loan closure is not updated on MCA? Are you planning to do it? If yes, by when?

2. You have been conveniently not providing any details on the pledged shares since May 2019. How many shares were pledged with these 3 banks and how many were released? What are the remaining pledged shares for and when will those be released?

3. Why the notification given by Axis Bank about sale of properties was not informed to the shareholders?

Preferential Issue:
1. Why are you raising only 30 odd crore rupees?
2. What are the other financial obligations that you need this money for and why those details are not provided to us?
3. What was your criteria in selecting these 3 parties to issue the shares?

Restructuring of subsidiaries:
1. Name of the legal advisor?
2. Name of the audit firm performing global audit and what is the date of completion?
3. Have you identified the party who will finance us based on receivables?

Daum Settlement:
1. What is agreed settlement amount? And details of repayment plan and where will we get that money from?
2. On what date the agreement copy was sent for Daum‘ review and what is the deadline given to them to respond?

[tanv151]

Agreed, No harm waiting till the Conf call to decide on further action. If we don’t get positive and concrete updates on or before call, then no point waiting till May for us to make a move.

[tanv151]

All we are asking for:
– Why can’t we get details of pledged shares. Don’t see any reasons why this can’t be shared, be it confidentiality or whatsoever

– Why do we still see Canara Bank debt as an open item on MCA. Can’t believe it takes 3 months to get this done and how come SBI loan repayment details were updated almost immediately?

– Why can’t we get the name and other details of the legal advisor? What is the reason to hide it?

– What does WIP mean for global audit? WIP could be interpreted as ‘they are trying to identify a suitable audit firm’ or ‘Audit is being performed’? If it is the latter why can’t we get the name of the auditor? We are in no hurry to see the audit report n okay to give it time till May.

– On 10/04/2018 an announcement was made that E&Y been appointed to internal audit as a step to on-board them as the statutory auditor. When I asked a question on one of the Conf calls in late 2018 or early 2019 as to why a firm like E&Y is taking so long to complete the work, SKR said it’s not there fault and the delay is due to the type of businesses BCG. After that we never heard anything on this matter.

http://brightcomgroup.com/wp-content/uploads/2018/04/EY-as-Internal-Auditor-Final.pdf

We will only gain by making SKR own his commitments and delivering on them. Hence, I see no harm in taking action instead of just waiting for another quarter.

[Author]

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