Brightcom Group Limited's update on Show Cause Notice from Honourable SEBI

In response to the above Show Cause Notice issued to Brightcom Group Limited and its key officers, the Company hereby, wishes to inform its stakeholders that:

A. The Regulator has made certain observations in this Show Cause Notice, the main ones being:

1. The Company had taken impairment charges in its balance sheet for FY 2020, Amounting to Rs. 868.30 crores. The honourable SEBI has observed that, as per accounting standards, these charges should have been taken through the P & L statement, and not through the Balance Sheet & that by taking the said (noncash) charges not through the P&L, the profits for that period have been overstated.

2. The Honourable SEBI has also made observations that the shareholding pattern of the Promoter holdings in the said period, were not rightly reported.

3. There are other observations on compliance & reporting done by the company.

B. We have taken on board the observations stated in the detailed report.

C. Both BGL (Brightcom Group Limited) and the Nominees have noted the directions offered by the Honourable SEBI.

D. The company is taking legal advice with respect to the overall matter.

E. The company and its key officers will, respectfully, respond to the said Show Cause Notice, about its reasons for treating the impairment charges in a particular manner, as well as on the other issues raised by the Honourable SEBI.

F. The company also welcomes this opportunity to strengthen its compliance, accounting and disclosure standards.

Shares of Brightcom Group Limited was last trading in BSE at Rs. 15.42 as compared to the previous close of Rs. 16.23. The total number of shares traded during the day was 4500693 in over 4097 trades.

The stock hit an intraday high of Rs. 16.60 and intraday low of 15.42. The net turnover during the day was Rs. 69973117.00.

Source : Equity Bulls

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