[vgsatwork]

@drjaysee

Thanks for the update. The delay in dividend payment is not the problem here. It is the communication from the company to the shareholders about the same. If there is any genuine issue due to which they cannot stick to the timelines, they should have come forward and informed the shareholders through exchanges and that is how they can build their credibility.(Disclosing unpleasant news as well and showing that they are being transparent)

My problem is till date they have not said a word about this dividend and PW status to investors through update to stock exchanges. Unlike the common say that no news is good news, w.r.t markets no news is bad news and that is the problem the management needs to recognise and address

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@Rathi_b

I don’t think PW and dividend are related at all. Reason being the record date for dividend payment was 21st Dec and whoever was holding BCG shares as of that date should get the dividends, no matter when the payouts actually happen. Non payment of dividend is not an option either since it could land them in jail. Also, by holding on to dividend payment there is nothing that they can achieve in terms of their PW approved by the exchanges or authorities.

Only scenario that I could think of is to let the shareholders believe that the company is not in a position to pay the dividend and become panic and sell out so that some of the operators can pick up the stock. But that would become a price manipulation issue, if the same gets reported, which is much more serious offense and they might as well forget about getting the PW approval from there onwards and would land them into legal trouble.

So, rationally i could not think of any reasons as to why company is delaying the dividend payment.

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@ Logan
We need to take 28th Dec 2020, when the AGM resolution for dividend was passed as the date of declaration and from that date, it should get paid in 30 days. Annual report mentioned 25th Jan, which is 29th date from this date. This may possibly because 26th Jan is declared holiday.

By all counts they have defaulted on their commitment now..

Posting this link (based on company law on distribution of dividend) from one of my earlier post..
https://taxguru.in/company-law/declaration-payment-dividend-companies-law.html

One more link from Ministry of Corporate Affairs on the same topic..

http://mca21.gov.in/SearchableActs/Section127.htm

[vgsatwork]

When I mentioned about my telephonic interaction with SKR on 6th Jan, I did not mention about my question to him about the dividend since that was not the focus of the conversation and moreover there was nothing to share as an update. However, I feel it is apt to mention it now and hence posting this. Once SKR completed his discussion about my scores portal complaint, I had asked him about the dividend and said that it has been almost 1.5 weeks since the dividend is approved and I haven’t received the same. He said that it would come and there is some 30 days time limit for the process and it should happen within that time frame,etc,. This is an instance of hearing first hand from CEO that dividend would be paid within 30 days following due process and I took it on face value and now after 37 days, still no update. I feel I could not judge him/his words when he talked about a simple event like dividend. I am sure people who have met him or heard from him first hand would relate to how it feels…

[vgsatwork]

I am just reiterating what I have posted last week. If BCG cannot keep up it’s commitment of paying 5 paise per share holder, then there is no reason to believe what they say or said about the current state of the company or forward looking statements. Their credibility is down in dumpsters, if they cannot even pay 2.5 crore overall which should have been provisioned and kept aside ONLY for this purpose all along since May 2020 when they announced dividend.

As far as this forum and it’s members are concerned, we are all invested in this stock and all of us have vested interest in seeing this company succeed. I have been invested in BCG only from late 2018, whereas some of the investors in this group have been invested in this stock for 6-7 years now and hence I could understand the pent up feeling that you might have about the management seeing the commitments not being honored time and again. My belief is that the company and the underlying business is good. But the corporate governance is worst and if it requires individual to stand up and ask question to the management,one should do in order to hold them accountable and that should resolve the problem of corporate governance. I know this sounds like shareholder activism, but ultimately it is our money that is invested in this business and we are part owners. To that extent, if we remain off handed and trust that management would do everything right, my fear is that we would end up seeing more such moves where retail investors would be at the receiving end.

There is no point in blaming individuals for not revealing their identity or doubting individual’s intent when they post a message in this forum. I am sure all of us have made our investment decision not based on what others said/did, but based on our own convictions and the choice of staying with the stock is also purely ours and ours alone and hence let us not try to blame any body. If we remain invested in BCG, then it is our OWN decision and if we decide to sell out and move on, again it is our OWN decision.

We must use the forum to share knowledge, insights,etc. But to take the bit of info as insight, knowledge or something to ignore is for the individuals to decide. Personally, I take any viewpoint with a pinch of salt. Some of them I might take and some I chose to ignore…

[vgsatwork]

Update on #10279

Today is 31st Day since the declaration of dividend through notice to stock exchange has happened and still we do not have update from the company and the complaint that I sent to investor relations was neither acknowledged nor responded to.

I have no other choice other than to raise it with SEBI and have raised a complaint in SCORES portal for non payment of dividend.

If any of you receive any update from the company on the dividend subject, please do keep us posted

[vgsatwork]

I doubt if any company would try to take over BCG as it stands today since EV/EBITDA is too good to be true and Mcap is way too less (and not especially known for good corporate governance), making it a cheap, but potentially risky bet unless the numbers could be verified independently by them. Unless the buying company gets access to the books of BCG, they would not be able to validate the numbers and get convinced to make a take over bid.

Buying 25% from the market and making open offer is no big deal given the transaction volumes in the exchanges. But the buying company should be convinced about the numbers in order to make an attempt and hence it(buying without verifying the books of BCG) could not be done by public(shareholder) money. If someone sitting with personal spare money of about 200 cr, they can try a takeover bid. But that is just too big a risk, especially when playing with personal money.

[vgsatwork]

If they cannot keep their commitment of paying 5 paise dividend, I don’t know how we as retail investors trust anything that they say, especially forward looking statements?

[vgsatwork]

Ref #10282

That could be a possibility, but if it is the case, they should have notified the shareholders as it does not augur well for the reputation of the company. Consequently, Axis Bank issue should have been resolved on war footing, as there is a risk of Axis making a submission in the court about the same and it would have reached the media/public even as the management was keeping quiet about the same and it would do irreparable damage to company’s reputation.
Given that Axis issue is still out there and the risk to companies reputation if the news becomes public, I really doubt if it is the case…

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@sobha

Quoting your message “Now they can narrate cash crunch. It will justify warrants”

I don’t think they can say that since they have been sitting on principal approval for LOC. If they say that, then it means all is not well with LOC, about which they have not intimated to shareholders. Last shareholder update about LOC is all rosy…

[vgsatwork]

Raised a complaint through Investor relations email ID of Brightcom group about the non payment of dividend. Hope they respond back promptly..

Attached a screenshot of the same for the reference of others. If any one else has reached out to investors relations on this, please post the response that you get..

Attachments:

1. 

   Complaint.jpg
   

[vgsatwork]

@anand84sharma

This is the excerpt from the annual report of BCG (Page 39, Bullet point #4)
“The Company has fixed Monday, December 21, 2020 as the ‘Record Date’ for determining
entitlement of members to receive final dividend for the financial year ended March 31,2020, if the same is approved at the AGM. Payment of Final Dividend, as approved, shall be subjected to deduction of tax at source, and the net dividend, will be paid to eligible shareholders on or before January 25, 2021.”

Today is the day they have communicated in AR and also if you see, 30th day would be tomorrow, 26th Jan which is a declared holiday. May be that is why they might have given it as 25th Jan in Annual Report.

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@Optimus Prime 06
I had seen updates from individuals who had got dividends credited, but I am not able to make sense of the same since dividends cannot be issued selectively to certain shareholders. That would become much larger issue then. I believe you might have received ADVANCE credit from your broker in the good faith that the dividend would be paid by the company anyway. But if it is not dispersed by the company, I am sure the broker (In this case, Upstox)will take that money back from you.

[vgsatwork]

Declaring the dividend and not paying it in 30 days is an offence and the directors could go to jail.. refer the link below

https://taxguru.in/company-law/declaration-payment-dividend-companies-law.html

[vgsatwork]

@sandyc316 Thanks for the update.

This is a new low for BCG that they are not able to credit the notional dividend of 5 paise per share and the share transfer agent is not having any update about the same on the last date by which the dividends should have been credited. This is a question of just 2.5 crores (5 paise for 50 crore shareholders) and if company is not having it/provisioned it despite it being declared more than 6 months back, This would certainly be a new low and the credibility of the management would go down the drain..

If indeed the dividend is not credited, then no amount of other news flows can save the share price since people would start wondering about the state of the affairs if the company does not have 2.5 crore cash that it should have provisioned at the first place as of May, when they announced dividend along with the financial year results. That takes away the credibility w.r.t financial numbers.

Even if they are in serious cash crunch since the time they announced the dividend, prudent thing would have been to inform the shareholders and DEFER the dividend through notice to exchange. Otherwise, nobody is going to believe what they say about the current or future state of the company. I hope management realizes that sorts this out by today, even if means a significant embarrassment to admit that it does not have the money to pay the promised dividend

[vgsatwork]

@Diana Horton, @Logan
All of us here are investors and at the end of the day we all want to benefit from each other’s views/insights and no one is intending to harm or degrade anyone else or their viewpoints. Hence request both of you not to take the views/comments personally.

[vgsatwork]

@Logan

Agree with your views that BCG might be trying to focus on growing standalone business(since the market currently valuing the BCG primarily based on the audited numbers of standalone business) once the Axis loan is closed so that banks would not claim full loan amount instead of OTS money. But he has been having the 31 crore from PO that he could have used and settled it Axis immediately (moreover Axis also has freezed it to ensure that the 31 crore does not get utilised for any other purpose other than to clear their OTS), but he has not done that. Also, he has opened up the talk of additional 265 crore coming into the company through PW. May be Axis is not agreeing to settle for 31 crore OTS and demanding full loan amount to be cleared looking at the news flows of the past 1+ years.If that is the case, then need for additional fund of 265 crore makes sense.They can pay off Axis their full loan amount and use the rest for their growth plan without getting debt on their standalone business books.
Again, easier way would have been to take loan from subsidiary and close the Axis loan and then with a clean books, raise LOC for their overseas business and raise equity through preferential route to an institutional investor for the new growth area that they are targetting for in their standalone business..

[vgsatwork]

I tend to agree with Logan when he says that if SKR wanted to raise his stake, he could have done the same in the last couple of years and need not have waited till now to try and have the stocks allotted to his B team @7.7. If I take a step back and see the entire chain of events, Oak wanted an Exit and an institution was to pick up that stake. It never happened, instead we had seen a stream of news flows including Consolidation of all subsidiaries under one umbrella company, LOC, BDO audit,Daum settlement, Loan closure, PO to Muskaan,Analyst meet, company presentations, etc,. Eventually when Oak exited fully, the news flows stopped or the developments surrounding these news events have completely stalled – be it LOC, Daum, Axis loan, Consolidation of subsidiaries, etc,. But the net result is that Oak got the exit it wanted and Muskaan ended up holding roughly the same amount of shares that Oak had by Q3 FY20.

Few months down the line we have been told all of a sudden that company is raising 265 crores through preferential warrants and this time not much of a news flow and over the next 1 months amidst heavy trading, the net result seems to be Exit of G gang. Once the SHP has been announced, the daily trade volumes have come down significantly..

I am beginning to think that the entire PW is a charade and the warrants would not be issued – may be disapproval from exchanges or may be some other last minute financing arrangements for the required capital and company would change it’s mind and inform the exchanges and investors accordingly. My guess is that News flows from last 1+ year was to ensure certain set of large shareholders get an exit and a group of entities who act in concert with promotors have been created. If you look at the AGM voting, you don’t see enough NO for PW issue’s that corresponds to G gangs known holding, which suggests that the Gang was Out before the book closure date of 21st Dec itself giving the promotors clear edge. If you closely look at the voting results, even amongst the promotors, there was no unity in terms of their voting when it comes to PW allotment. That speaks volumes..

But what could be the end game? – Not sure. But the promotors are trying to create a group which would not be part of promoters, neither have a board representation, but would always act in concert with Promotors.

[vgsatwork]

MC forum is complete garbage where people vent out their frustration over this stock & promoters or some investors who overtly vouch for the stock. None of these two sides have anything in terms of news/analysis/insights to contribute. To that extent I value this forum where people are sharing knowledge and stock price movement for that day is not the ONLY criteria that is driving the discussion in this forum

Any price sensitive information – Be it approval/rejection of PW by the exchanges needs to be notified to investors immediately. Given that MC forum is garbage and one can get away saying whatever they want without any repercussions is what is making that forum breeding ground for spreading rumors. Only thing I do not understand is that in forums like MC, where there is so much of negativity about a given stock. If somebody has invested in this stock and giving negative feedback relentlessly, they are crazy by definition and if someone is not invested in that stock, but spending time and effort spreading negativity about a given stock, they could only be frustrated individuals who have nothing else to do in life or they part of operator gang who have vested interest in keeping the share price low.

Hence, do not let what is being discussed in those forums get to your head.

[vgsatwork]

@buffet Response to discussion thread # 10135
There was no clarity and infact the notice for the EGM voting for Preferential offer did not had details around the objects of the issue and subsequently there was an update from the company almost 3 weeks AFTER the notice and just a day before the voting start date that the funds would be used for reduction in bank debt and to meet other financial obligations..

From the above, it was clear that not all the money from the preferential offer was meant to close the bank debt and there was a plan to use part of the money for some other purpose and may be that is the reason why Axis bank might have blocked the money to have full claim on it.

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