Brightcom stock rebounds after massive value erosion

Brightcom stock rebounds after massive value erosionJune 3, 2023New Delhi, June 3 (IANS) Brightcom Group shares continue to rise after regaining multibagger tag up 27 per cent in five sessions.Brightcom, which turned into a penny stock at the end of April this year, has rebounded 122.33 per cent from its one-year low of Rs 9.27. The sharp movement in the share price came after the fourth-quarter (Q4 FY23) results, market sources said.As per media reports, the company has been under the spotlight due to a Securities and Exchange Board of India (SEBI) order, which pointed to many irregularities in the company’s financial statements for the period of investigation.While the SEBI investigation output was available to investors only on April 13, 2023, by which time the price had already eroded by around 85 percent from the peak, irregularities were there to be observed much before the dramatic rise and subsequent fall of BGL’s share price, media reports said.BGL is an export-oriented company and has many subsidiaries. In fact, subsidiaries are a major portion of its business as we can see from the numbers below. Almost the entire profit and total comprehensive income come from subsidiaries, and so do a majority of assets and net worth, media reports said.Media reports said that the auditors of the company have not audited 14 out of 16 subsidiaries. That’s 94 per cent of the total consolidated assets, 82 per cent of the total consolidated revenue, and over 100 per cent of the total reported profit. The entire profit is not audited by the statutory auditor of the company, media reports said.–IANSsan/ksk/