The letter to stock exchange is dt.13 Nov but says that the meeting concluded on 14th Nov!!
The board received and approved only the ‘Standalone results’ subject to auditors comments.
The consolidated it appears was neither presented and approved by the Board nor reviewed by the auditors.The consolidated results do not even carry anyone’s signature.Need to check if this is in compliance of listing regulations.
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The page 10 of the released pdf doc says: “Chennai, November 13, 2018: 8K Miles Software Services, Ltd., a leading …Services Provider, today announced the Company’s unaudited financial results for the quarter ended 30th September, 2018 as approved by the Board of Directors.“ And this is followed by the consolidated numbers. It seems to suggest that consolidated were presented and approved by the board…though there is no signature at the end as was the case when June 2018 qtr result was released. An act of inadvertent omission or ominous commission?
Positives are - revenue growth and partial return of loaned amount to US based 8K Miles Media Group…leaving Rs 21 crores (as of 13 Nov) to be repaid. This is down from Rs 34 crores (as of 30 Sep). Also apparent is that revenue growth hasn’t translated proportionately into profits with expenses eating significant part of it. Trade receivables of Rs 290 crores (~equal to full Q2 revenue of Rs 282 crores) boggles my mind. Is it like this for Infosys, TCS, Wipro…of this world? Then you have Rs 14 crores of 9 months+ old unpaid export invoices! Think…it wasn’t disclosed before. How does that happen?
There is this point 4.3 that says Indian 8KMS has to receive Rs 62.25 crores from its main US subsidiary 8KMS Inc. Is it a loan from the Indian entity? Not clear to me…
Overall business appears to be growing well and as market initiatives fructify, at least the topline should keep getting better. Also it is critical that they become a strategically focused professional organization. This ‘loaning’ business is highly distracting. Overall the impression that emerges is…they are trying to get their act together. Let’s see…
Page 1 clearly states the board approved the unaudited standalone results Last year sep qtr says" board approved unaudited results" without mentioning if it was standalone or consolidated.
The SEBI regulations states that every notice sent to SEs must be signed by a Director or MD.God knows if they surreptiously attached the consolidated results with standalone
One couldn’t say objectively if these fund managers including IFCI did a great job selling 8KMS in Rs 60-70 range (now it is ~80% up). As it appears, when the holding/valuation drops below a certain %age, they couldn’t care less and exit.
For sure, it is hard to say if this recent price rise is based on fundamentals (assuming released consolidated is a reflection of firm’s fundamentals) or again some ‘punting’ by operators as called by SV in one of his earlier interviews.
A fund operates differently vis a vis an individual.There is a risk assessment dept,a investment committee and a fund manager.They waited long and once you they saw that IFCI has sold the shares because the interest could not be serviced and Credit rating has downgraded the company it makes no sense to hold.Recovery will b ake many quarters. Why will it go up?Just because someone buys it is not going to help the company.It needs funds to be injected in the company which is going to be hard.
Saw Deloitte’s latest comments:
1)A sarcastic reference to Ramani resigning as CFO to clear his name of forgery charges but the auditor says he continues (quote) “Company stating that his
resignation was to have the necessary time to clear all the baseless allegations and
unsubstantiated allegations of 8K Miles Media. However, he continues to be a director
in both the Company as well as 8K Miles Media.”.
He also signs the standalone accounts when the previous auditor has accused him of forgery.
The use of “however” is a strong word.
2)See the second adverse comment.The US subsidiary borrows Rs62crs from the listed company and lends Rs58 crs to “related company” 8K media inc.He says they are unable to assess if there would be any effect on the listed company because of the ongoing charges, the resignation of auditor in 8K media. And then he says " We are unable to conclude if the above events in 8K Miles Media have any effect on: the ability of the Company’s subsidiary to repay its dues to the Company, in view of
the loans receivable by it from the entities of 8K Miles Media Group in the USA as
described in paragraph 4.3 above".
3)He has clarified that 8K media is a related entity though the management went about saying it has nothing to do with the listed entity.
4)Finally he says he doesn’t know why Rs36.11 lacs were paid as processing fees to a bank and he says “were informed” and “not been provided with the borrowing/proposed borrowing” indicating that there is no papers to back this claim.
5) I also saw that the consolidated accounts are not signed but uploaded on the exchanges and there is no way it was even presented to the board because it is not signed by anyone.Regulation 33 of listing rules says a company may submit standalone or consolidated accounts on a quarterly basis or both but it must be reviewed by the auditor. Here they have got the standalone reviewed but uploaded the consolidated too without any review or even approval.
This company offers so much of opportunity to learn.
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Well…seems market has priced and is still pricing all these aspects alongside the positives in the upward movement of scrip’s price.
Need to focus on positives too. Top line growth is very good across the portfolio of products as well as sectors. It makes the firm reasonably diversified. And it is in its early stages of growth. Let’s see how SV steers the firm ahead…
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Moving in circuits only will not give anyone any chance to exit once it will start correcting.
Have seen people getting into Vakrangee False Price Rise Trap.
Possible , it might repeat here very soon !
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You are absolutely right.There is no fundamental reason for it to move up except for a technical bounce after a massive fall.
The consolidated figs are provided by the management.The board had not taken responsibility for it.The acquisition has been dropped.Between April 18 and Sep’18 sales moved up by Rs57 crs and PBT by Rs7 crs.Each succeeding qtr the stress is going to show,till a restructuring is done.
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I looked at Vakrangee financials first time ever…as I keep seeing this name being compared relentlessly. The context, industry, markets, background of promoters, numbers across the line/item level of financial statements…are vastly different. Comparison requires a huge stretch of imagination.
And for sure…8KMS’s conduct has given everyone reason to doubt them in every conceivable way. However they (SV in particular) know that they are in public glare with law keeping a close eye. SV has committed to taking actions to improve governance and investors are watching him 24x7.
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I wonder how long this bounce will continue. I am more concerned about this scrips movement in either direction. While the down moves can be explained by people losing faith in management given their mis-steps and lack of transparency, I am wondering what is propelling the stock up? Could it be manipulation or is it bottom fishing (I doubt though). Any thoughts from the learned cohort here are appreciated. Thanks!
8K Miles Software Services Awarded Premier Consulting Partner Status in the Amazon Web Services Partner Network
I see the same is updated in AWS website as well now: https://aws.amazon.com/partners/premier/
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The December shareholding pattern is out and it shows SV having disposed an additional quantity amounting to 10.74% shares in the quarter, even as he was shouting from the rooftops that some brokers forged and ‘illegally’ sold his shares.
Like I had mentioned earlier 8.64% shares, in Post#968 were disposed for 48 crores. This even as he was giving interviews at the time about 8K MIles being undervalued, shares were sold by forging his signatures etc.
Even as he disposed in the manner given below, he did not disclose to the stock exchanges until today.
His disclosure that filed today but signed on 03 Jan 2019 is attached here 21022019 8K Miles SAST.pdf (81.6 KB)
Astounding!
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#diffsoft
Wasn’t about 17 odd lac shares sold by IFCI which was pledged as COLLATERAL, included in this?
Now we find CTO Harish has quit, Ramani has sold almost all but a few shares at Rs750, Suresh has sold about 59lac shares. So all founders have sold in the 6month window fom Jan-June.
The company has almost 80% of its income and profit from the US subsidiary which is unlisted. But it has zero borrowings in US.
The company knows that given that the US subsidiary accounts are window dressed with intangibles and goodwill and any probe will land them in trouble if they borrowed in US, they have raised all their funds from India using the US accounts which lenders in India have no access to.
This year we will see Deloitte doing a make or break audit having been indicted by ICAI for their role in ILFS accounts.
The two quarterly results of FY19 says Deloitte has not even reviewed the subsidiary accounts and by the wording of press release it looks even the board did not approve the consolidated results but only approved the standalone though the consolidated results were released.
Harish was a founder member and a class mate of Suresh and his quitting was immediately followed by Ramani selling his holding and that followed by Suresh selling.
I remember Maybank Kim did the first analyst meet and took them on a road show to HK and Taiwan and since then have completely disassociated with the company and today they have only regrets for having been associated in the past.
There is something that is horribly wrong.
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The shareholding for Dec18 is out.DSP and Canara HSBC have dumped the shares and booked huge losses.All shares have been picked up by individuals.I will later on post who lost and who made money in the last four years.
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The quarterly results are out. Again the auditor has not reviewed the consolidated results nor were the consolidated results presented and approved by the Board, yet released to the public.
Does anybody see the startling resemblance between 8K and ISFT charts, as if they were the same company. Theres not much on ISFT blog. Can anyone shed some light? Even their daily moves are almost identical
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