Stock Report

Brightcom Group Ltd clarifies on forensic audit

Posted On : 2022-02-28 22:40:39( TIMEZONE : IST )

Brightcom Group Ltd clarifies on forensic audit

On September 16, 2021, approximately five months ago, we received a letter from the Securities & Exchange Board of India, dated September 16, 2021, wherein they appointed a forensic auditor, primarily concerning queries relating to Impairment of Assets in the FY 19-20 and the charge taken thereon. Impairment charge, a non-cash charge, was taken by the Company due to the Global Data Protection Regulation (GDPR) in Europe and its applicability worldwide.

The company represented to SEBI that the said audit was unnecessary because several internet companies had to take such charges globally, owing to the GDPR norms.

However, SEBI on 25th February 2022 (Friday) intimated the company that this audit would be necessary. Accordingly, we are notifying the Exchanges.

Since September 2021, the company has extensively cooperated with SEBI and the Auditor, in this regard, by supplying volumes of data, such as below:

trial balances, ledger accounts, bank books of the company; Detailed breakup of the impaired assets by subsidiary; Impact of GDPR law by product; Audit committee and board resolutions regarding the impairment, etc.

We wish to categorically state that Brightcom, a global company with strong internal controls and an effective audit system, is compliant with all applicable laws and regulations, across jurisdictions.

The company is audited by EY for 40% of it's revenues, and nearly 70% of our revenues come from Israel and the US, two of the most regulated countries in the world.

The Company is committed to extending its total cooperation in this regard, to the Regulator and Auditor.

Shares of Brightcom Group Limited was last trading in BSE at Rs. 119.05 as compared to the previous close of Rs. 118.25. The total number of shares traded during the day was 1002929 in over 5194 trades.

The stock hit an intraday high of Rs. 122.90 and intraday low of 112.35. The net turnover during the day was Rs. 115250821.00.

Source : Equity Bulls


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