It will be great if you can elaborate on above or just point to source. Thanks
I am not sure why some people are defending 8k miles when a lot of concerns have been raised about it time to time. There is no smoke without fire. Price action of 8k miles is suggesting the same.
No stock loses 75% of it value in a sector where most of the companies are making new highs unless it’s a fraud.
There is a lot of smoke but no sign of big fire. It is evident that there may be some corporate governance issues (Infy has corporate governance issues) but not sure if the beating the stock is taking is commensurate to these issues.
Just measuring in terms of revenues, cornerstone alone has an estimated revenue of ~15M and Nexage ~ 10M
This seems to be heavily over sold territory.
Amit got the attached letter from MCA filings on 8K Miles Media Pvt Ltd, which is on the auditor’s letterhead. 8k Miles - Resignation Letter.pdf (258.4 KB)
I called up Mr Haresh (on the number in the letterhead) to verify. He picked up the phone and identified himself but disconnected the call when I broached the topic.
GHG Associates and its auditors will be more worried about its reputation (being small and relying on their word-of-mouth than a big-4 than can rely on its brand) and most likely will also have complained to RBI. Since the letter is dated April 30, there is some chance that they got to know of the alleged forgery in the course of their statutory audit of 8K Miles Media Pvt Ltd.
To say that the company involved is not the listed entity, but only have shared common promoters (allegedly forging) who control both firms, hence we are possibly safe, is quite self-delusional.
Based on trading volumes, deliveries, coupled with timing of corporate announcements, and movement to 100% delivery, I suspect that the large non-institutional shareholders have offloaded their shares (I think more than 10% of total outstanding shares) between 01 July and 26 August (~ when it became 100% delivery) and the counter parties have largely been genuine investors. The two institutional shareholders have a small %age of their AUM and they would rather mark to market than sell it down, for NAV purposes.
Thus, the new guys left with the shares are for the most part, genuine investors, and a heavily increased number since June 30, who may not be aware of the drastic impact of reduced market making with 100% delivery. After a spate of bad news, ‘prisoner’s dilemma’ would have set in (thanks to @phreakv6 for seeding this in my head) and there is a rush to exit before ‘anyone else does’. Now as more people think and act on the same, it pulls down the price creating more number of people wishing to exit, in a downward spiral and creating a one sided trade.
I have been following this thread from a long time and this is my first post. Its sad the way some investors have been personally feeling offended if some negatives are highlighted. We should not be in love with our stocks and should take a rational view. When someone i knew introduced this company to me few years back, first thing i did was a cursory google search on the founder and it was enough not to touch his company seeing his past. Of course i missed the manufactured bull run on this counter but have no regrets. Its the process which counts and not the outcome.
When the Facts Change, I Change My Mind. What Do You Do, Sir?
I still think the so called facts are being fabricated. I ran the resignation letter scan image through a photo forensic tool and it appears that that CHG rubber stamp and the signature have been copied from another source and pasted later on.
I then did did a manual check on the borders or the stamp and signature and you can see for yourself that both have a different baground and pixel density than the rest of the image. I am really curious to see how and if an investigation happens.
I for one feel that this is an attempt to destroy the marketcap of 8k miles. Maybe Suresh made someone very angry and this is their way of getting back.
Im invested and adding…
Can you name the photo forensic tool you used?
You can use jpegsnoop or ghiro, it will help if you consult someone who knows how to use these tools
Thanks. This seems technical for non-experienced. I do not know if it would right to ask you to explain with evidence you findings of analysis of resignation letter.
@diffsoft Callup the auditor but he did not deny the resignation, instead disconnected the call. I believe he would have denied, if he would not written it.
Clarification issued by 8K Miles
Best clarification would be to give regular high dividends. They are in business which needs no capex.
Something is missing here. Reminds me of things like Geodesic.
Not sure what purpose this really serves as the document is from the MCA filing and can be independently verified at source.
The document link was a Google drive link and not the MCA website link. It would be good to see the verification. The last time I fact checked an article on 8k miles annual report, I found it to be factually incorrect. Hence I’m doubting this source as well as its not yet verified.
My point was anyone can visit the MCA site and download the document - forensic analysis not required as the source (MCA) is open to all.
@Altruist can you please help me find the link on the MCA website. I tired but couldnt figure out how to navigate to such filing information.
Yes. Create an account. Find CIN of the Company under Company Services. Then go to View Public Documents under Document Related Services and enter the CIN and search for attachments under year 2018. There is a resignation letter uploaded on 07-May which should be the document being circulated. You can pay a very small fee (Rs. 50 or so) to access all the documents.
Interestingly, while navigating the portal now, I noticed that there has been a change of directors today.
Please see the screenshot from the MCA website. The Form ADT-3 which seen to be filed on 18/05/2018 is for resignation of auditors, so the letter doing rounds is not forged. No auditor will file a fake resignation letter with the ministry.
All the seen documents can be downloaded from the MCA website for verification by paying a nominal fee.
It is also seen that subsequent to filing of above letter, there is alteration in equity capital.
The auditor resignation letter is authentic. I have downloaded it from MCA website. Attached for reference.
Today Suresh Venkatachari resigned as director of 8K Miles Media. Attached documents for reference.
I have downloaded other documents as well. I can share if anyone wants.
20180518.pdf (3.6 MB)
Changeindirector_5.pdf (29.2 KB)
The PDF (resignation letter of auditor) has two digital signatures, both of which are valid. So, there should not be any ambiguity now on the authenticity part.
Meanwhile the other PDF talks about ‘personal reasons’. Considering the timing of the events, isn’t it very obvious that the director is now trying to distance himself from the company as a damage control exercise (perhaps after getting legal opinion)?
I could not open the resignation letter. Instead it is showing
Also if you could upload P&L and B/S. Thanks