155th AGM of BBTC, online AGM experience.
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.
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
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