Brightcom Group Ltd.

Frds pls check this company

My few observations.

Majority sales profit out of India..So auditors has no role in auditing the nos. Has to rely on company informations.

Please read these nos. Snapshots from annual report....If able to read pls share ur findings...Who do reporting like this...Where shareholders has to do tediuos mental work

Balance sheet..Shows... Huge Acquisition and contribution of intangible assets huge.

Big gap in between payable and receivables rare in software companies...Instead huge receivable company managing wc without debt...Only short term debt..Which is constant

Cash flow having many such things like intangible assets other current assets...Read carefully...U will understand, but painful work to read these nos.

SHP and pledge data self explanatory

Sep-19 company has 14 subsidiaries...dec-19 16 subsidiaries...Plus check the % of sales and PAT not audited by auditors.

Check below snapshot of bs...Red highlighted has significant contribution...Is this bs really looking good to you...
25 cr of fix tangible assets only...Rest all intangible goodwill..Main source of revenues that too only company has control.. Auditors has to rely upon comoany

150 cr of goodwill impairment,

Note one thing in bs company having huge nos. In other account whether it's liability or assets ....Than what is the core business of company

Huge profits but defaulted payments in Mar-19..And not able to settle other dispute..Pic self explanatory

FYI

Huge receivables and each year having doubtful debts

Other current assets...Is other receivables ...532 cr...But found no explanation in AR

Check related party transaction yourself... Available in AR

Dividend a small amt wrt company earning...Pending from long...

412 cr loss in investment written off...
One side company doing aggressive acquisition and other side accounting Loss on investment and goodwill impairment...Huge value...For this kind of company...Check with peers

Main cash in operation from profit before tax one entry...30% OPM...Rest entries are adjustment no meaning ful cash generation...Check other entries...Now people will say company having good cash flow from operation 510 cr last year 314 cr. Ok wait for other cash flows

Company not able to generate cash free cash flow or not wanted check..Only 10.5 cr investment out of total 387 cr is tangible rest all other n intangible.

As not much happening in financing...So reduced reserve by 244 cr rs...Leaving 13 cr only as cash with zero dividend

Picture self explanatory....Though having huge profits....Where is the cash...Neither share price rewarded old investors nor dividend...y no dividend if having such huge OPM 30% PEERS has 16% to 20%.

SUCH A NICE OPM WITH BALOONING RECIEVABLES

N people has no doubts

Two key person sold few% of shares...Why...No explanation, will wait bse SAST disclosure...This was recent selling...

Company earning majority coming outside INDIA....In India company not doing well only 3% OPM...LOSS MAKING..Ok than no tax liabilities and not much scrutiny...All book on consolidated basis...Managed by company only.....

Many more q?

But let's stop here.....

Kindly read my observations...Do ask q? Point out my mistakes....So that this can be useful for us....Thanks....

Acquisition of a dead listed company....Has nothing to do with Indian business...All business out of India only 25 cr tangible assets.... Acquisition of foreign companies for growing or showing growth, no one knows abt the business...Only stories cooking around company..beware

The China Hustle... Must watch movie on reverse merger...For better understanding

Reverse merger takeover is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public.

Ckt broken after long time...

First LC

Do you think... promoters having no clue about this price movements

2.5 rs to 12.5 rs

Giving exit to funds...Or funds desperate to exit...

Let's do some more scrutiny of financial nos.
Below pic ...Self explanatory

Cash flow from operation telling on conso basis..306 cr increase in short term loan advance and 121 cr increase in other CA.. BUT I cudnt able to see in Balance sheet, snap shot of current assets attached...It's telling decrease in loan from 684 to 653 cr. On cumulative basis..

Bad debt written off..Need to check next AR it may be related party transaction, which went to bad debts 25.5 cr

Balance sheet start shrinking total assets shrunk by 6% or 194 cr rs...Check decrease in reserve in next pic

Reserves decreased

Auditors notes..
1.Though company making huge profits...But not able to repay loan .only 71.55 cr rs to axis Bank..
2. TDS irregularities...Why... Employee count and other detail not available in LAST YEAR AR
3. 111 CR dispute LYCOS acquisition still pending...Using Lycos name y

I am not able to find this entry in bs or cf. If anyone pls help...Also check reduction in current assets shown in BS is only 313 cr vs 868 cr shown in pic.

Almost 83% revenue from subsidiaries.

Auditors not audited these nos. Moreover all PAT shown is coming from subsidiaries...India business only for name shake.

Now look at the cash flow entries...

Foreign currency fluctuations is best source of income

Though company showing huge PAT and operative cash...All are burning in intangible assets...Means no real cash coming IN or Going OUT, it just an observation...Check at your end...y company not leaving cash for investors

What a result...No fluctuations in you EPS stood at same in bought quarters 2.26 rs per share...Kudos..

YOY EPS*

Lastly 5 paisa dividend per share in total 2.4 cr rs only from annual profit of 450 cr....O MY GOD. Till date i think not cleared previous dividends 10.50 cr rs..

This is from my end...Series of UC will force people to ignore my observations...But remember this company is not for investment.

All d best

Pls let me know, if anyone find error or wrong interpretation of data by me.

Happy investing