[whyShares]

Ybrant was the previous name of BCG and in 2007 they acquired an Israeli Company. That Company does 40%+ of total BCG business and is audited by EY the world’s leading Audit Firm. BCG does not have 100% ownership, only about 65% if I remember correctly. The Israeli Company run their operations independently and Suresh Reddy could not have gotten his dirty hands in it to steal money. Similarly, BCG has only majority stakes in most of its overseas operations, and each entity is run independently. So Suresh could not have stolen money from them. In short overseas assets of BCG are real and BCG will recover its former glory once this mess of Share Capital forgery is over. This is what I think. Learned members, please share your opinion. Thanks.
https://www.ynetnews.com/articles/0,7340,L-4116177,00.html

[whyShares]

I think the most natural thing for SEBI to do will be to nominate the same auditor who carried out the Forensic Audit of BCG to be the Auditor of BCG to clean up their books and present a real picture. They already have a lot of exposure to BCG. I am sure there must have been several previous occasions where SEBI has nominated an Auditor to reconcile the books of a crooked Company.

[whyShares]

Shankar Sharma writes on X (Twitter) about his investment in BCG

(1/n) Brightcom: The Parson ka Saag-a
By
Le Grand Fromage
(Writing sense. At least, some of the time)

Ok, bachha party, tayyar ho jao..As Dharam Paaji said famously " Gaonwalon, is kahani mien action hai, drama hai, comedy hai, tragedy hai". This is a…

— Shankar Sharma (@1shankarsharma) August 26, 2023

[whyShares]

Tension regarding BCG continues……
But some comforting facts.

1. First day after the bombshell news, BSE+NSE trade volume was over a crore, second day it was over 50Lakhs and today the third day – let us wait and see, already at 10:50am crossed 12 Lakhs.
2. Posts in X (erstwhile Twitter) postings quoting 2012 performance of Ybrant Digital (the name of BCG in 2012)
Quote:
“As #BCG #Brightcom board is to meet to give effect to Sebi’s order.
Lets see below statements by earlier CEO of our israeli subs before acquisition and 2012. So lets not fall prey to narrative. Business is authentic. We used to do 9 billion impresions/month in 2007.”

As #BCG #Brightcom board is to meet to give effect to Sebi's order.
Lets see below statements by earlier CEO of our israeli subs before acquisition and 2012. So lets not fall prey to narrative. Business is authentic. We used to do 9 billion impresions/month in 2007. pic.twitter.com/tu8Q86U0uT

— Mayur (@mayur78900) August 25, 2023

[whyShares]

The total volume of trade in BCG today, NSE: 4598411 and BSE: 5469045 making a total of 1,00,67,456 shares (over a crore). This much volume is very surprising. Especially since it takes place on such a negative news day for BCG and in a share with compulsory delivery and shorting not allowed. This can only mean that there are people who think BCG will pull through this crisis. I also believe so.

Another thing, all the 51.21 crore shares allotted under preferential issue, in all probability, will be cancelled. This means the share capital of the company will come down by about 25%. This will be a bonanza for us retail investors.

My feeling is that there are people or entities targeting BCG for a hostile takeover by cornering as many shares as possible from the market. I do not expect the price of BCG to go down much further. Fingers crossed.

This is just my opinion, not a recommendation.

[whyShares]

Never expected Mr. Reddy to be a fraud. I can’t imagine Suresh being so dumb and stupid, thinking he could get away by submitting forged bank docs to SEBI. We should give him a chance to reply to these allegations.
If there is fraud, I hope it is only in the Share Capital accounts and not in the business income and expense accounts. If these accounts are somewhat clean (minimum 30% genuine), then we can expect BCG to rise again under new management.

[whyShares]

Recent article on BCG

https://simplywall.st/stocks/in/media/nse-bcg/brightcom-group-shares/news/brightcom-groups-nsebcg-five-year-earnings-growth-trails-the

[whyShares]

Here is my take on SRK’s journey to the making of BCG what it is today. It is pure educated guess work and what I imagine may have happened.

The evolution of BCG from being an online Greeting Card Company to one of the world’s leading programmatic digital Ad-Tech Company is something spectacular. SRK did it by taking over budding Ad-Tech Companies from all the world. In the process Mr. SRK borrowed left and right and pledged whatever shares he had. His single minded drive and vision to grow BCG into the new 4AM field of Ad-Tech taking big risks with his personal fortune has to admired. In between his pledged shares got sold, he may have been on the verge of Bankruptcy and about to lose all what he worked for.

Anyone in this position would have resorted to wheeling and dealing, sometimes at the borders of legality. To regain control of his Company he may have resorted to desperate means like issuing preferential shares, unwanted bonuses, not declaring share holdings, announcements of taking over Companies like Media Mint, Audio Company, etc. etc. – all done for survival.

Now I think he is firmly in the driver’s seat and BCG should be rising to new highs.

Here is a factual listing of BCG’s History
https://www.moneycontrol.com/company-facts/ybrantdigital/history/LGS

[whyShares]

Regarding the erosion of Brightcom share price – Now it is all due to the share holding of promoters AND/OR whether they artificially inflated the prices and enriched themselves AND/OR if they pledged their shares and it got sold, etc. etc. Everything about the share holdings of individual promoters.

But nowhere is there any talk of the sales and profits of the company being manipulated NOR is there any talk about the foreign subsidiaries being paper companies and that their sales and profits are cooked up. This even after a Forensic audit conducted by a world leading auditor.

Thus the business of BCG is real and generating profits. At the end of the day the share price of BCG will be determined by the Profits it generates. No matter who owns how many shares, eventually it is the value of the BCG business which will determine its price.

When people realise that the BCG share price should depend on P/E ratio and not on who owns what shares, the BCG shares will zoom up.

Please people! post some comments. Thanks.

[whyShares]

Share holding pattern of BCG as on 31-03-2023 uploaded. It puts to rest all speculation that the promoters have sold their shares. They not only have their 18% + intact but FIIs have increased their holding to 15% +
See share holding pattern at the bottom of the Screener India website
https://www.screener.in/company/BCG/consolidated/

[whyShares]

Maybe the price of BCG will start going up from now.

This FA report proves that BCG’s businesses overseas are genuine and creating good revenue. Many were doubting whether these foreign companies existed.

SEBI is not questioning the revenue income of the company. It seems that BCG getting big revenue. The questions raised by the F. Audit is how they spent it and reported its profits. So being a revenue generating Company with no debts, it is a good candidate for take over by some big guns. So there is still hope.

I am not an accounting expert and it will be good if a CA can give us an opinion. Below a screen shot where the revenue income is accepted as genuine by the SEBI Auditor

Attachments:

1. 

   BCG-FA-Screenshot-1.jpg
   

[whyShares]

This is a 3 months old video
Bcg share latest news | देश के सबसे बड़े investor Raamdeo Agrawal sir ने Bcg को cover किया। bcg news

[whyShares]

There is also speculation that Raamdeo Agrawal, ace investor, is also targeting BCG. This is based on interview given by him 5 days ago on Zee

Comment from one of the BCG Telegram Channel about this video:
“Watch last 5 – 10 mins of Interview..
The way he said International Business Entrepreneurs of India similar to Facebook & Google and also 70% Growth rate. Can you tell me which Digital Stock in India matches this criteria.. Only BCG

By the way, he also said some where in 90s or 80s HDFC Bank stock was easily available as much as you want. I found similarity there as well in free float”

[whyShares]

There is talk going around that Porinju Veliath, a star investor, has started buying BCG from the open market. Not sure if there is any substance in these roomers.

Thank you Shankar, – highly intelligent, sharp, informed …opinionated yet flexible…Says what is in his head and heart…no filters …and super fun to spent time with. https://t.co/2pyLnoiBJ6

— Porinju Veliyath (@porinju) March 2, 2023

[whyShares]

Here is the snapshot of the conversation with Chat GPT

Attachments:

1. 

   BCG-shareholder-grievances.jpg
   

[whyShares]

Qustion to Chat GPT:
“how can common stock holders force company to hold an emergency meeting to address their grievances in india?”

Chat GPT Answer:
“In India, common stockholders can force a company to hold an emergency meeting to address their grievances by exercising their rights as shareholders. The specific process may vary depending on the company’s articles of association and applicable laws, but generally, the following steps can be taken:

Check the company’s articles of association: The articles of association typically outline the process for calling a shareholder meeting. Review these provisions to understand the requirements and procedures that must be followed.

Gather support from other shareholders: Contact other shareholders who share your concerns and request their support. If you can gather enough support, you can jointly demand the company to convene an emergency meeting.

Draft a written requisition: Prepare a written requisition requesting the board of directors to call an emergency meeting to address the specific grievances.

Submit the requisition to the company: Submit the written requisition to the registered office of the company. The requisition must comply with the requirements specified in the articles of association.

Follow up with the company: Follow up with the company to ensure that the requisition is being considered and to request an update on the status of the meeting.

If the company fails to hold the emergency meeting within the prescribed timeframe or fails to address the grievances satisfactorily, shareholders can take further legal action. It is advisable to consult a legal expert for guidance on the specific laws and regulations applicable to the company and the shareholders.”

The screen shot of above chat is attached below

[whyShares]

On checking BCG result: BCG paid 202 crores as tax for just Q3, that is for 3 months ending December 2022
Do you think a fraud company will pay this much taxes?

[whyShares]

Below I am sharing some exchange I had with Chat GPT:

Q:
News about brightcom forensic audit?

A:
Brightcom Group is an advertising and marketing company that was previously listed on the Indian stock exchanges. In 2020, the Securities and Exchange Board of India (SEBI) ordered a forensic audit of Brightcom Group’s books after receiving several complaints from investors about irregularities in the company’s financial statements and share price movement.

The forensic audit was conducted by an independent auditor, and its findings were submitted to SEBI in early 2021. The audit reportedly found several irregularities, including related-party transactions, non-disclosure of material information, and potential market manipulation. Based on the findings of the forensic audit, SEBI has taken several actions against Brightcom Group and its executives, including imposing fines and banning them from trading in the securities market.

Q:
This answer is not correct. SEBI has not concluded its forensic audit. where did you get the info that actions were taken against Brightcom

A:
I apologize for the error in my previous response. You are correct that SEBI’s forensic audit of Brightcom Group is still ongoing, and no final conclusions or actions have been taken yet.

To provide some background, SEBI ordered a forensic audit of Brightcom Group in 2020 based on allegations of irregularities and non-disclosures in the company’s financial statements and share price movement. The forensic audit is being conducted by an independent auditor, and its findings have not been made public yet.

I regret any confusion caused by my previous response and strive to provide accurate and up-to-date information.

My opinion of what is happening. Please comment with your frank opinion:

Even Chat GPT has misinformation about Brightcom to beat down its price. There may be gangs of Shorters like HINDENBERG / or people who want to buy BCG at rock bottom price, working overtime to feed misinformation to the public.

We cannot even rule out the promoters of being guilty of intentionally working to keep the prices down in order for their relatives and friends to accumulate BCG.

The other unthinkable alternative is that BCG is a fraud Company. But Brightcom is paying a lot of income tax in India and abroad (mainly Israel). So I can’t imagine a fraud Company with imaginary profits paying income tax.

Please comment on your take on the income tax paid by BCG in India as well abroad.

Attachments:

1. 

   ChatGPT-BCG.jpg
   

[whyShares]

Correction to above post
BCG Profit for first 9 months of the financial year (1st April 2022 to 31 December 2022 is: 1,57,250.33 Lakhs

This is 50% more than the profit for the full financial year (1st April 2021 to 31 March 2022) = Rs.1,03,484.46 Lakhs

[whyShares]

BCG Profit for first 9 months of the financial year (1st April 2022 to 31 December 2022 is: 1,57,250.33.

This is 50% more than the profit for the full financial year (1st April 2021 to 31 March 2022) = Rs.1,03,484.46

So on completion of the full financial year 2022-2023 expect profit to more than double from last financial year.

What is holding back the share price of BCG is mainly due to the scare mongering by BCG Shorters.

A big hue and cry is made of the Forensic Audit. SEBI ordered the fornsic audit because BCG had written off some “impared Assets”.

Impared Assets are like the value of expired medicines, the value of which has to be written off when it is destroyed.

In Software business a value is given to their software. When new software is developed the old software becomes expired or of no value and written off from the books.

This is a normal accounting practice by all software companies. When BCG did it it was made into a big issue and the Shorters had a field day.

Hindenberg is a shorter of Adani Group. That should tell you a lot.

[Author]

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