Thread by @vishalks28

Unvieling Corporate Mismanagements: #brightcom

A thread:

Imagine a listed company reporting growth in revenue and profits QOQ at more than 30-40% consistent every year!! Should realisticly be a mutlibagger stock for investors?

Well not really - Introducing #brightcom

The Company reported a consolidated PAT of Rs 483 crores in FYE 21, PAT of Rs 912 crores in FYE 22 and PAT of Rs 1141 crores for 9 months of FYE 23!!

#brightcom

So we read through the financials and ask the management to clairfy the manner in which it supports the carrying value of more than a thousand crores of intangibles in its books of accounts

#brightcom

Why we ask this is the group has reported PAT of more than 1400 crores in last 2 years, raised 900 crores of preferential allotment and paid a paultry sum of aprx 85 crores as dividend in 2 years. So cash effectively is “invested” back in business in intangibles

#brightcom

The management response:

We have policy of amortization of 6 years as per industry norms. No rationale, no independent valuation just plain vanilla “industry norms” whereas notified Accounting Standards require support for carrying value

#brightcom

So we follow up and reiterate and ask the management to provide the basis for carrying value of “intangibles” in its books of accounts.

#brightcom

And then we wait, wait and keep waiting for the management to reply for over 2 months now and have no response!!

#brightcom

A small case study on what corporate mismanagement is and how retail investors are “mistreated”! You can keep asking the Company, keep adding the stock exchange surveillance team on follow ups. All u will get is eerie silence!!

#brightcom

So what next as retail investors??

You have a company which is unresponsive, you have stock exchanges which turn a blind eye on investor queries. You attend “investor CON calls” where you get no chance to ask any questions

#brightcom

The exchanges themselves send an update mentioning the company is unresponsive and has not clarified on queries raised

#brightcom

Even after almost 2 months neither the exchanges nor the company come out with any clarifications

@NSEIndia - How can you let such companies trade their shares on exchange when they do not even respond to yu!

This is just the tip of iceberg

The Group doesnt even share the results of its subsidiary companies. Again when asked for reason - No response

#brightcom

The Group has not uploaded the audited financials statements of its subsidiaries outside India which consitutes 99% of their revenue and profits!!

#brightcom

First Company in the universe whose share price falls the same amount as much as their reported profits rise every quarter!

#brightcom

It has been 3 months since some simple queries were raised with the management and they have failed to even respond. Only wasting time in sending follow up and calling the investor cell. @peshwaacharya @BrightcomGroup

27 reminder mails in 3 months and @BrightcomGroup @BrightcomGlobal management has no answers to simple basic questions on financial statements on accounting for intangibles, subsidiary financial statements and cancellation of MediaMint. Too busy to respond to investors!!

Reminder number 28! @BrightcomGroup @BrightcomGlobal

#brightcomgroup

Core Values in investor Presentation = Shareholder Centric

Reality = Shareholders be dammed. We cannot respond to your queries!

#brightcom #brightcomgroup

Another day, another reminder to the Shareholder Centric Company

#brightcom @BrightcomGroup

Another reminder to shareholder centric company!

I wonder if i asked something which is so difficult to understand for the management!

#brightcom @BrightcomGroup

Another reminder and another call to Investor Helpdesk! The only help they give is to disconnect the call on your face!! #brightcomgroup
@peshwaacharya - Nice way to waste money on setting up an investor helpdesk who lack basic courtesy to talk to investors!

Fiction: we respond to all investor queries.

Fact: Despite 30+ reminders over 3 months, there is no response from “Shareholder Centric Company”
#brightcom #brightcomgroup

@MLJ_GoI @NSEIndia : How do you allow such Companies to remain listed!!

And they dont fail to disappoint again!!

A long last ask from investors to publish the auidted financials of subsidiaries is partailly met by uploading financials without the financial details!!

brightcomgroup.com/investors/subs…

Time to meet certain privileged investors and answer querires, while other investors can keep waiting for an enternity

@BrightcomGroup - Can you official confirm or deny such meetings between CEO and certain investors

@SEBI_India - Is this even legal?

#brightcomgroup

So its public news now that the Shareholder Centric company is in elite company by not resolving investor queries for over 3 months!! Not less then
@SEBI_India
making this annoncement!!

#brightcom #brightcomgroup

So the investors have spoken and dumped this stock today. A lesson for all retail investors: If a story is too good to believe, it is obviously a façade

Ps: Management has still not has responded to queries sent 3 months ago. So much for being "shareholder centric"

#brightcom

So these meetings appear now to be last attempt to pump up the stock before the final downfall!!

#brightcom

@SEBI_India : While you sleep and let such companies have access to public money, you continue to fail your purpose of existence - To protect public money.

#brightcom #brightcomgroup

@NSEIndia - You continue to let such entities trade when they fail to respond to investor queries only shows you are hand in glove with management.

#brightcom

49* reminders to the Shareholder Centric Company to provide some basic clarifications!

Unilaterally extended the lock in for shares issued for a failed acquistion in a Board Meeting. Does it even bind the shareholder to extend the lock in!!

Just another eye wash!
#brightcom