iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

SEBI orders forensic audit of Brightcom Group

1 Mar 2022 , 10:05 AM

In a communication, BSE said, The Exchange is in receipt of a letter dated 16 September 2021, from SEBI, issued to the Company, Brightcom Group Ltd, informing the Company about the appointment of a forensic auditor, Deloitte Touche Tohmatsu India LLP, for conducting the forensic audit for the financial years FY15 to FY20. The same is being disseminated for the information of the Investors.

BGL is a digital marketing solutions company. SEBI ordered a forensic audit by Deloitte Touche Tohmatsu India into the financial statements of BGL for the financial years 2014-15 to 2019-20.

The market regulator has said that it found discrepancies in the disclosures by BGL that could be detrimental to the interests of investors and securities markets.

The auditor will check if there are any manipulation of books of accounts of the company and its subsidiaries; misrepresentation of consolidated financials and business operations; and wrongful diversion or siphoning off company funds by promoters, directors and key managerial persons.

BGL, in a regulatory filing to the stock exchanges on Monday (28 February 2022), said it received SEBIs communication in September 2021, informing it about the appointment of the forensic auditor.

?It was primarily concerning queries relating to Impairment of Assets in 2019-20. The 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,? it said.

?We have represented to SEBI that the said audit was unnecessary because several internet companies had to take such charges globally, owing to the GDPR norms,? it said.

However, the market regulator informed on 25 February 2022 that the audit would be necessary.

Since September 2021, the company has extensively cooperated with the SEBI and the auditor, in this regard, by supplying volumes of data, including a break-up of the impaired assets, it said.

BGL said it was audited by EY for 40% of its revenues, and nearly 70% of our revenues come from Israel and the US, two of the most regulated countries in the world.

BGL consolidates ad-tech, new media and IoT based businesses across the globe, primarily in the digital eco-system. Brightcom Media enables businesses, agencies, and online publishers worldwide in meeting their digital marketing needs.

On a consolidated basis, net profit of BGL surged 168% to Rs 371.45 crore on 130.08% rise in net sales to Rs 2021.33 crore in Q3 December 2021 over Q3 December 2020.

The company allotted 1,50,00,000 (one crore and fifty lakh only) warrants convertible into equity shares to Shankar Sharma and 80,50,000 (eighty lakh and fifty thousand only) equity shares to the 21 other allottees on 23 January 2022 at an issue price of Rs 37.77 per warrant/share on preferential basis.

Sharma is vice chairman & joint managing director of First Global, an investment management firm.

Shares of BGL rose 0.68% to Rs 119.05 on Monday (28 February 2022). The domestic stock market is shut today, 1 March 2022, on account of Mahashivratri.

Powered by Capital Market – Live News

Related Tags

  • capital market
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.