8k Miles Software Ltd, Cloud Computing

(Silmaril) #810

@Funda_Buffett do you think they will survive this allegation. Forgery is not a trivial corp governance issue that can be fixed. There are criminal and civil implications, and the directors are liable even if they have resigned.

I am still sold on the business model and growth, but fraud wipes out all the goods…

(Funda_Buffett) #811

I agree with you 100%. But I have a serious question which we all are ignoring. GHG resigned on April 2018, a random guy on twitter got hold of this letter few days back (i.e. we are towards the end of September now) from MCA and uploaded it on twitter and everybody else shared it and commented !!! IT MEANS WE CAME TO KNOW ABOUT IT ‘NOW’ ! But in reality GHG has resigned in april itself citing allegations on the promoters. Why GHG hasnt filed criminal case on the promoter yet? Why he is avoiding questions when I and also few other people tried calling him? He himself is hiding something very serious ! And i strongly smell vengeance of his removal from 8K Miles last year. Because it is September now and no criminal case filed ??? I doubt ! Leaving that aside, just for a second, if management indeed have done forgery, there would be case on them by now 100% ! Why that hasn’t happened yet?
Again, I may be wrong but there is something seriously wrong . If management is proved guilty then nothing can save 8K. Till that happens, I am relying on the strong facts company presents on its business. A little bit more communication will be great for clearing grey areas !

(Silmaril) #812

I have the same question, 5 months why nothing happened, is there a subjudice case already? No one knows!!! The only communication 8k miles needs to do is be transparent about the forgery allegations, I dont think the majority questions their numbers, it only questions their intentions

(Manojlion) #813

Hi bro,

Have you come up with the list of questions. If yes,can you please share the same.

Request fellow VP members to add more questions,if any

(bharat19) #814

If the numbers are too good with huge profits , why no dividends or buybacks for the Shareholders !

(Harsh Vijh) #815

@Funda_Buffett I respect your judgement and passion. Do you plan to attend AGM in person? If yes, it would help if you could raise some Q’s therein and share answers provided. I have raised some in the discussion thread above. More importantly, you will be able to guage mgmt intent since you would be in person.

Unfortunately, I am unable to attend owing to prior commitments. I have e-voted though and expressed my dissent on acceptance of annual results owing to auditor disclaimer.

Disclosure: invested.

(Funda_Buffett) #816

Have you seen the level of capex they are doing? And they are also on the verge of acquiring one more company as per his TV interview. Plus they have started investing in blockchain which will show results in 30-36 months ! Its the initial stages of growth. Wasting on dividend is something being a shareholder also i wouldnt want ! Though I am open to buyback once they are done with their capex and started earning revenue from that capex.

(Funda_Buffett) #817

Shoot your questions again please ! Too many chats for me to locate your questions !

(udayp) #818

Below are the outlines of the questions. Anyone wanting to add please copy/paste these and append so that we have a final consolidated list of questions:

To CEO and management

  1. What steps is the management taking to increase transparency in accounting practices. (This is an open ended question to understand the response of the management)
  2. Does the management plan to release individual financial statements and annual reports of the 5 subsidiaries and their subsidiaries. If yes, when. If no, why not.
  3. Why did the CFO sell stake and re loan the money to the company.
  4. Explain the fraud allegations by GHG Associates.

To the auditor

  1. Do you plan in future quarters to audit all subsidiaries. If yes from which quarter, if no what are the guidelines that you follow in accepting the audited financial information from the subsidiaries.
  2. Are you satisfied by the audited reports and accounting standards of the 5 subsidiaries for March 2018 FY reporting,

(Gaurav Agarwal) #819

I think the only question, we investors need to find confirmed answer is

Are Revenue numbers for real?

Rest all does not matter. If revenues are real, the company is grossly undervalued.

(Nasirul Amin) #821

Shouldn’t the only question to Management be that whether revenue is real?

To Auditor
Did you actually take Debtor/Creditor/Bank Balance confirmation or relied on management representation?

@diffsoft Because of you I could understand things are wrong and then someone said they need to clarify about 8K Miles Media in Moneycontrol forum, which gave me a clue and did some search how to mine MCA website. Downloaded some 10 forms one was this.

(Harsh Vijh) #823

Q’s for AGM:
Why such bizarre related party transactions: loaning money to media group and borrowing money from CFO?
When are you expanding the scope of work of Deloitte to include all subsidiaries?
When will the company start generating free cash flows?

(Krishnaraj) #824

Thanks @Nasirul.

I think you were the first one to spot the filing of the auditor resignation (due to forgery), that has led to the real spotlight on 8K Miles.

It has now been amplified by BloombergQuint, which should give legitimacy to the questions asked at the AGM.

(ragha1982s) #825

Have shared my thoughts on different topics discussed on 8K today. Hope my analysis is useful.

As mentioned before in this board, i have visited their office and spoken to couple of people during meetup events earlier. I only saw positiveness whenever i spoke to their experienced employees.Out of 600+ employees, 26 reviews in glass door and that too 6 negative reviews is not sample to discuss at all. every company will have unhappy employees, freshers during appraisal and they vent out in glass door. If there are 300+ reviews for 600+ people company then it needs to be analysed. else ignore.

Salary was delayed by 2-3 days in 8K miles chennai in two instances in last 3 years. Once during the annual appraisal period and another when their payroll provider was changed last year. this is normal to most of the organizations and i dont see red flags.

One of the senior boarder phreak pointed out 8K miles has expertise only in cloud migration and rudimentary automation but has nothing to do with AI/ML/Block chain. Iam not a financial specialst but surely experienced in the technology 8K miles is working on. Thats why i invested on them. Same way I am a fan of phreaks financial analysis posts.

Cloud transformation is one of their main business, it involves cloud architecture, cloud migration, serverless, engineering , automation, devops and Next gen managed services.

Cloud Migration: Low hanging fruit. Every cloud solutions company including our Big 5 does this and 8K also does this. they have hundreds of customers on this.

Serverless: One of the meetups i attended on 8k office was co hosted by 8K engineers and Amazon on Servless and they were discussing a GE healthcare customer case implemented by 8K on Servless. Customer GE. Vendor 8K

Cloud Transformation: I heard from their architects that they are involved in entire Novartis IT cloud transformation Journey for last 3 years for multi cloud. Cutting across cloud Security, Architecture, Automation and Next gen managed services. Next Gen Managed Services is a competency certification provided by AWS after deep technical evidence and customer proofs that 8K miles is using Machine learning algorithms to operate its cloud managed services. This is not a normal Managed Services program, please understand. 8K miles is also the core team that is involved in setting up a peta byte secured Big data cluster for Novartis for some pharma analytics. This SECURED Pharma big data cluster i heard is first of class for Novartis and Amazon. Heard this from Amazon rep. Customer Novartis. Vendor 8K.

DevOps + Automation: For Roche, 8kmiles has built a Multi region, Multi Cloud Devops pipeline platform using HPC clusters. This is like a science cloud where roche runs their genomics. Also built on AWS, Azure and Google Cloud. This i heard is a first of class in AWS globally. Customer Roche, vendor 8K.

Cloud managed Services: In Trimble, they are engaged on multi year Devops and next gen cloud managed services. Customer Trimble, vendor 8K.

Above clearly shows they are deep into cloud in following aspects like Cloud Transformation, Serverless, Next gen Managed services using ML, Automation and devops. I have listed with the customer names and the work they are doing for them after my discussions. You can cross verify this with any of 8K miles architects or with Amazon or if you have friends in their tech team. It is clear from the work (if you deeply work on this field) they are not like any other normal cloud player and very advanced. Thats why Amazon , Azure and Google recognizes them very well.

Please attend their webinars, meetups and talk to their tech people before classifying them.

Have already covered my thoughts on Cloud/ML areas . I am currently gathering the information on AI / Block chain.

AGM thought. Many of the questions i wanted ask is already discussed. but i have a suggestion :
If the question is not framed correctly, Their management can say 8K media questions are strictly out of scope of 8K Miles software services Ltd meeting. Suggest one senior boarder to coordinate with others and ask this properly.

(Nasirul Amin) #826

People are still talking about business model and Fundamental, when fraud has already come to light. Even if they have an iota business investors won’t get anything.

Anybody remembers Arvind Remedies, Rei Agro, Anil Ltd & many more. Regulatory authorities do nothing or even if they do something it’s too late & mostly useless for safeguarding your money.

(Gaurav Agarwal) #827

What fraud has come to light? An allegation has been leveled by fired auditor that his letter has been misused.

All the facts have not come to light and many possibilities exists. Don’t you think?

(PavanM) #828

Not Invested. Following the thread to understand if there is any fraud.

A few boarders have recently joined (just a couple of weeks ago) and have commented on this thread only.
Couple of them (have) posted within 2 hours of joining the forum.

May be they are genuine investors, may be not. Cannot prove.
But I urge the readers to weigh in the profile of the poster with the content they publish.

As it is a public forum, caution is advisable on the part of the reader.
I assume the management is following this thread; and posting questions intended for them at the AGM will help them prepare and rehearse, rather than being spontaneous.

(Nasirul Amin) #829

Isn’t the modus operandi the old one. Lend to associate companies send the money abroad. Management also resides abroad. However; I agree there are endless possibilities but at the same time I also know Suresh Venkatachary resigned from 8K Miles Media only after I posted that letter.

(Kumar Saurabh) #831

In case one wants to learn from history, listing down few companies only from tech or so called edutech (yea, edutech looked cool those days) which looked at its prime and then fizzled out. You will find many similarities:
Core projects and technologies
Glodyne Technoserve
Allied Digital Services Limited
Omnitech Infosolutions
Teledata Informatics

Glad I worked for few months in one such organization and got life learnings later validated through academic readings with some live case studies in market :slight_smile:

And yes, before one calls it hindsight bias, kindly remember that a repetitive hindsight bias is nothing but pattern and those patterns lead to foundations for buzzwords like machine learning n artificial intelligence which some of these companies boast of. :slight_smile:

Note : Many of these companies do not even trade today where as just 8-10 years back they were in the hottest areas of technology , featuring in deloitte asia top 50 n what not. 10 years is a very long time in market it seems but people like me who learnt their 1st lesson , paying tuition fee, mano kal ki baat ho…

Baaki sawari apne maal ka khud jimmewaar hai :stuck_out_tongue:

On this company, i think a year back , had given my views n warned in whatever ways i could n i think @phreakv6 @diffsoft have been raising key warning alarms regularly. Dont think any of us do because we are interested in a bull bear game, its just because equities is not only about where to invest but its more about where not to invest - " All I Want To Know Is Where I’m Going To Die So I’ll Never Go There" . So, before we say “when you are not invested, why are you wasting your time here on this thread”, think again my friend.

(Gaurav Agarwal) #832

Yes, that is true. But that surprises me. This means he did not know about the resignation letter of auditor otherwise he would have resigned earlier.

On standalone basis company has almost no business. Standalone revenue for fy18 is around 5 crore. Therefore question of Indian business sending money abroad does not arise.

Look at the borrowings of the company.

Out of total 62 crore, 37.5 crore are lend by Ramani, therefore no question of sending Indian bank money outside comes into picture.

Now, look at the loan of the company. No loan on standalone basis (Indian company) is given to 8K Miles Media.