BBTC 155th AGM online experience and takeaways. ~ Shareholder Awareness Program

Shareholder Awareness Program

Welcome to our blog, our objective is to bring positive change in quality of corporate governance in Indian companies by starting shareholder activism in India!

We will be also sharing experiences on AGM, stock reports and management quality reports.

(click here to download presentation on Shareholder activism)

BBTC 155th AGM online experience and takeaways.


155th AGM of BBTC, online AGM experience.



Nusli wadia, Ness wadia, Jehangir wadia, Gauri kirloskar,YSP thorat, Minnie Bodhanwala, Rajesh batra, Vinesh Kumar Jairath in the 155th Online AGM of BBTC.

Article published as on Friday, 24th July, 2020 at 11:30 p.m.   


24th July, 2020 Friday at 3:30 p.m.
 (this is an update to the previous article : link here)

Meeting started 10 minutes late.
As usual the formal statement relating to financial statements was made. And this time a proper speech relating to condition of business was made.
Speakers were invited to speak

Bharat shah & Smita shah ~requested for face to face meeting in January / February.

Lekha shah ~ thanked the management for various issues.
(Most questions were not relevant to add here and other queries were asked through email and were answered personally.)
‘This was the last question on the line’ moderator said.
Now Nusli Wadia and Ness Wadia answered the questions.

Meeting concluded in approximately 15 minutes at 3:55 p.m.
(Nusli and Ness wadia were not looking sincere enough throughout the AGM although it was just for 15 minutes, look at the pictures above.)

There were no takeaways from the AGM, And the only reason and incentive to remain invested in this company is due to its holding in Britannia and the discount it is trading at.

RESOLUTION ITEMS important to note.

Coming to the item number 7 & 8
(Link to the annual report , BBTC AGM notice included, page number 13)
In simple language (item no.7) it states that BBTC shall be allowed to borrow 1000 crores in excess of its net worth, and (item no.8) seeks consent from members in order to create charge/mortgage/pledge/hypothecation on the assets in order to secure the loan amount mentioned above.

This indicates that they want BBTC to raise money and provide it to other promoter-run group companies.

In FY20 they had reduced these ICD's to Go-Air but after these resolutions it seems clear they want to continue with their practices.

Conclusion:

As mentioned in my previous article (link here), the BBTC is being used by promoters to borrow cheap and then lend to Group companies like Go-Air as an inter corporate deposit. (Which is totally unsecured)

This company is having its own operations (loss making) and huge holding in Britannia, and currently it’s trading at 80%+ discount to the value of its holdings (main reason being huge rally in Britannia and relative dull performance of BBTC in last one year’s period.)

This article is just for update, next time I would better prefer to attend AGM of other companies as BBTC has mostly become nothing but a proxy play for Britannia.

Stock code: 501425            name: BBTC
Price: 1245.90                     website link: click here
Previous
Next Post »