Original Source: https://boringmoney.in/p/brightcom-made-a-profit-by-hiding (my newsletter Boring Money. If you like what you read, do visit the link and subscribe to receive future posts directly in your inbox)

The standard way for a company to make a profit is to produce a thing at some cost, then sell that thing at a higher cost, and pocket the difference. Another, if slightly frowned upon, way of making a profit is to not worry too much about what your company is producing or selling. Instead, at the end of the quarter, you can pick up your financial statements, take a pen, put some nice numbers under “revenue” and erase the numbers under “expenses”. On paper, the company’s making a profit either way.
The risk, apart from running out of money, is that the company might get caught. This month, Brightcom Group, an ad-tech company, got caught. [1] Here’s a SEBI enforcement order describing the stuff Brightcom did, and one of the many things it did was to show profits which didn’t exist.
Some intangible assets are under development
If your company buys, say, a truck, the standard way to account for this expense in your books is by dividing the cost of the truck by the number of years you expect this truck to last, and then adding this number to your expenses every year. This is slightly weird because you do pay cash upfront for the truck. But still, it’s useful to not have to call it an expense just for the first year because it is an asset that lasts many, many years.
If you buy a truck, account for it the standard way I described above, but then the truck meets with an accident and gets trashed the next day? Then that’s it. You have to now account for the full expense of the truck in one go and can’t split it into chunks every year.
In short, as long as an asset is “alive,” you can split its expense into chunks and account for each chunk every year. If it’s “dead,” you have to account for it right away.
Modern accounting is surprisingly thoughtful and there’s a weird in-between “alive” and “dead” that it allows for. Instead of buying an asset, if you’re building it, your asset is in some sense neither dead nor alive. So you can just, umm, add nothing to your expenses until you figure if your asset is actually dead or alive.
Brightcom was spending a lot on salaries, marketing, and stuff, but it didn’t want to show these expenses. So it decided that it wasn’t “spending” but instead “investing” in building an asset. From SEBI’s order, here’s Brightcom’s CFO:

Brightcom was building software and this software would eventually be an intangible asset. But, until Brightcom could figure whether this asset would eventually be dead or alive, it didn’t count any of its expenses as expenses, instead put it under an “intangible assets under development” category. This way, the company could show a nice profit because all its expenses were apparently assets. In all, the company hid ₹863 crore ($100 million) and showed a profit of ₹440 crore ($50 million) in 2020. If its expenses had actually been counted as expenses, Brightcom would’ve shown a loss of ₹428 crore.
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Asset’s dead but it’s not an expense
One problem with showing your expenses as an “asset under development” is that this asset can’t be under development forever. At some point, depending on if this asset is dead or alive, you have to account for your expenses in some way.
… Or not. If your company makes any money, you put those figures in your profit and loss statement. This is simple and straightforward. But accounting isn’t simple and straightforward. If your company makes money, but it’s not a result of your actual business, then you can’t put it under the P&L. Instead, you have to account for it under a separate subheading called “Other Comprehensive Income”.
The idea behind this new sub-head is that the company's P&L is supposed to reflect its actual ability to make money. If you hold a lot of dollars and the price of the dollar goes up (or down), your company didn’t really do anything to make that profit (or loss) so you’d put it under Other Comprehensive Income and not in your P&L. So stuff like this wouldn’t affect your profit, on paper at least. [2]
Yes, of course, Brightcom recognised the ₹863 crore loss that it had hidden under “intangible assets under development” by categorising it as Other Comprehensive Income. SEBI wasn’t excited about it.
Share this post so that Boring Money can move from “asset under development” to P&L
Sell your stake but keep quiet about it
If a company is doing well, its founders don’t usually sell stock. So if a founder sells some shares, they have to tell everyone about it by regulation, because it could be a sign that things aren’t well.
There are three entities that need to know if a founder sells stock:

1. The company itself, via its registrar and transfer agent (RTA)
2. Depositories that hold stock on behalf of investors
3. Stock exchanges

1 and #2 are important, but they’re obvious. The company has to know if its founders sell stock, and so does the depository that actually moves the stock from one account to another. #3 is how the rest of the rest of the world gets to know. A founder sells some stock, files a disclosure in a stock exchange, the exchange updates its records and screams out that this has happened, and that’s how public investors know.

In March 2014, if you had asked Brightcom’s RTA, a depository, or a stock exchange about how much stake its founders owned, they would’ve all said, “about 40%”. If you asked them again in June 2022, the RTA and the depository would say “about 3.5%”, but the stock exchange would scratch its head and say “18.47%”.
That’s because Brightcom’s founders—primarily CEO Suresh Reddy, his friends and family—sold their stock but didn’t inform the stock exchanges. Here’s what they said when SEBI asked what’s up:

Man, I’m just some dumb guy writing about finance every once in a while, and even I know that if you pledge your shares as collateral to get a loan, you don’t transfer ownership. You just inform your depository and investors about it, and you still own the shares. Reddy & Friends transferred some of their shares to someone else (that is, sold them) and decided not to inform the stock exchanges. Then they used pledging as an excuse and everyone had different answers about how much stock they really owned.
How much money they make tho
When a company’s stock price shoots up in a short period of time, and there’s no concrete reason for it to happen, in all likelihood, it’s a scam. The management of the company may or may not be involved, but it definitely helps if they are.
Last month, I wrote about Sadhna, a company that SEBI charged with running a pump-and-dump. The founders owned a lot of shares, they spread some false news, the share price shot up, then happily sold their stock to naive investors, and made a profit. If you see Brightcom’s share price trajectory without knowing any of the company’s other shenanigans, it might seem a similar story. The stock price was around ₹3 in January 2021. By December, it was at ₹117. 40X in a year is definitely not normal.
In a pump-and-dump, it’s important for those running the fraud to own shares before the price goes up. The fraud that Reddy & Friends are accused of, which I described above, was of selling stock and hiding the fact that they sold it. By early 2021, they had in fact sold 80% of their shares and it’s only later that the share price started going up.
But wait, here’s more from SEBI:

In 2020 and 2021, Brightcom sold a large chunk (almost 15% stake) of shares to a group of investors. [3] Later, Suresh Reddy—who had been selling Brightcom shares all these years—became a partner at these entities that had just bought a large chunk of stock.
It’s all a bit confusing but here’s what I think happened. In late 2020 and early 2021, it had become apparent if you called yourself a tech company, investors would push your price up. The finer details didn’t matter. Brightcom, of course, happened to be an “ad-tech” company. So there was a decent chance that its share price would go up (or it could be made to go up, there are ways). But since Reddy & Friends had already sold nearly all of their shares, they needed to buy more shares so that they could sell them when the price went up. But they couldn’t buy them directly—because how would they justify selling shares so soon?—so they got some proxy investors to do so on their behalf.
As expected, the share price did go up. A lot. Around the same time, SEBI started investigating the company because of all the shady stuff it had done over the years. If the proxy investors were to sell this stock now, SEBI would definitely catch on, it was already investigating them! So instead of selling any shares at crazy high prices, Reddy instead came out with his association with those proxy investors so that the total founder ownership would go back up to the exact amount expected [4] by the public, that is, 18.47%.
It’s possible that Reddy & Friends made some profit but SEBI says it needs more information to be sure about just how much it would be. It would’ve been easier to know had they also run a pump-and-dump for good measure.
Footnotes
[1] Technically, Brightcom got caught earlier when SEBI actually started investigating. But it’s just this month that SEBI put a nice document out with whatever its investigation found.
[2] This “Other Comprehensive Income” should be a small number. If it’s a huge figure more than your actual profit, there’s usually something fishy happening.
[3] Brightcom didn’t directly sell shares to the group of investors. Instead, it issued warrants. What this meant was that the investors had the right, but not the obligation, to buy shares from the company at a fixed price at a later date. This was a good way for these investors (who are now part of the founder group) to not risk too much money buying shares in case the price went down.
[4] Reminder, the reason that the public expected the founder group to own 18.47% was that they hadn’t informed the stock exchanges when they had reduced their stake.
Original Source: https://boringmoney.in/p/brightcom-made-a-profit-by-hiding

hello! i’ve been looking at the cardigan forever but couldn’t justify spending $350AUD on it so i wanted to try and knit it instead! i was wondering if anyone had any idea on how to knit it - would i be better off free handing? i’ve found patterns for cardigans but they tend to be quite bulky and oversized so don’t know how to modify unless someone knows a pattern that would be similar!! thank you <3

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Canon Underwater Camera Cases are perfect for capturing those unforgettable underwater moments. Our article presents a comprehensive roundup of the best models, highlighting their features, durability, and ease of use. Whether you're an amateur or a professional photographer, this review will help you choose the right Canon Underwater Camera Case to protect your camera and enhance your underwater photography experience.
In this article, we'll delve into the top Canon Underwater Camera Case models in the market, discussing their unique selling points and how they cater to different photography needs. Our comparison will provide you with all the information you need to make an informed decision and ensure your camera remains safe on your next underwater adventure.

The Top 6 Best Canon Underwater Camera Case

1. Canon WP-DC40 Underwater Camera Case - Capture stunning underwater shots with Canon's Waterproof Underwater Case WP-DC40 for S60/70 cameras, perfect for depths up to 130 feet, and ideal for rainy, beach, or ski trip photography.
2. Underwater Case for Canon PowerShot SD700 IS - The Canon WP-DC5 Waterproof Case is a must-have for divers and beach lovers, providing top-notch protection and enabling your Canon PowerShot to capture stunning underwater shots at depths of up to 130 feet.
3. Waterproof Case for Canon Digital Cameras - Canon's waterproof camera case, designed for EOS and PowerShot models, offers durability and access to all photographic controls, safeguarding against water, snow, sand, and dust, making it perfect for both underwater and land photography adventures.
4. Ikelite Underwater Housing for Canon PowerShot G9/G9 Mark II - Dive to 200' with Canon G9 X or G9 X Mark II Digital Camera in Ikelite's compact, lightweight underwater action housing, offering access to important camera functions, a scratch-resistant glass lens port, and compatibility with optional accessories.
5. Ikelite Underwater Housing for Canon EOS M10 (200 ft Depth Rating) - Discover breathtaking underwater photography with Ikelite's Underwater Housing for Canon EOS M10 - perfect for capturing up to 60m depth, compatible with various lenses, and allows for connection of optional external strobes.
6. Nauticam Canon EOS R5 Underwater Housing - The Nauticam Underwater Housing provides top-of-the-line protection and functionality for your Canon EOS R5, making it easy to capture stunning underwater shots with a variety of Canon EF and RF lenses.

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Reviews

🔗Canon WP-DC40 Underwater Camera Case

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I recently took my Canon camera on a snorkeling trip to Hawaii, and it was nothing short of amazing. With the Canon Waterproof Underwater Case WP-DC40 (S60/70), I didn't have to worry about water damage and could take stunning photos at depths up to 130 feet. The case's intuitive controls allowed me to capture every breathtaking underwater moment with ease.
One of the standout features was the accessibility of all camera buttons and knobs. This made it incredibly user-friendly, even for someone like me who isn't a professional photographer. The seal also proved to be reliable, with no leaks even during my 102-foot dives.
On the downside, the sunlight through the water occasionally made it difficult to see the screen, but it wasn't a deal-breaker. Overall, the Canon Waterproof Underwater Case was a fantastic addition to my camera gear, and I can't imagine traveling without it now.

🔗Underwater Case for Canon PowerShot SD700 IS

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As a photography enthusiast, I recently discovered the Canon WP-DC5 Waterproof Case. I've been taking my Canon PowerShot SD700 IS digital camera everywhere, and this underwater case has been a lifesaver. The case is designed to protect my camera from sea water and sand, which means I don't have to worry about damaging it while exploring the underwater world.
Its reliability and ease of use are truly impressive. Using it underwater was a breeze, and it opened up new shooting possibilities that I never thought were possible with a regular camera case. With its help, I've been able to capture stunning underwater photos at depths of up to 130 feet, even on my first dive.
The highlights of this product are its ability to protect your camera from harsh underwater environments and its ease of use. However, it's essential to take care of the lens port and keep the camera open when not in use to maintain the seals. Additionally, some users might experience issues with water droplets on the port affecting their shots.
Overall, the Canon WP-DC5 Waterproof Case has been a game-changer for me. It has allowed me to explore the underwater world without worrying about damaging my camera. Its reliability, ease of use, and ability to capture high-quality underwater photos make it a must-have for any adventurous photographer.

🔗Waterproof Case for Canon Digital Cameras

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I recently had the chance to use Canon's WP-DC27 Waterproof Case for my underwater photography explorations. As an avid scuba diver and photographer, finding a reliable case to protect my camera was crucial. The Canon WP-DC27 didn't disappoint. It provides excellent protection against water, sand, and dust, making it accessible for photographers who want to capture dynamic shots in various environments.
The ease of use was one of the highlights of this product. Its compact design and secure seals made the camera easy to load and unload, even with my hands covered in scuba diving gloves. The clear front panel allowed for easy access to the camera's controls, such as adjusting white balance and toggling shooting modes.
On the downside, I did find that the lens port wasn't threaded to accept additional lenses like macro or wide-angle options. While this isn't a deal-breaker for basic scuba diving and snorkeling, it may be disappointing for photographers looking for more flexibility in their shots.
In conclusion, Canon's WP-DC27 Waterproof Case is a reliable and user-friendly option for photographers on-the-go and exploring different terrains. Its durability and ease of use make it a worthwhile investment for those looking to capture their adventures to the fullest without worrying about their camera's wellbeing.

🔗Ikelite Underwater Housing for Canon PowerShot G9/G9 Mark II

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I recently got my hands on the Ikelite Underwater Action Housing for my Canon PowerShot G9 X camera, and let me tell you, it has been a game-changer for my underwater photography adventures! With its ability to capture high-quality video and still images at depths up to 200 feet beneath the surface, this compact, lightweight housing has made exploring the depths of oceans and lakes a whole new experience.
One of the standout features of this action housing is its scratch-resistant glass lens port. This ensures full use of the camera's zoom range without any vignetting, giving me super-clear shots even in the most challenging underwater environments. Additionally, the front of the port accepts press-on color-correcting filters and is 67mm threaded for attaching optional accessories, which further enhances the versatility of my underwater photography setup.
Another feature I absolutely love is the custom ABS-PC blend housing with acetyl controls. This material provides strength, UV protection, and fundamentally corrosion-free performance, making it perfect for withstanding the harsh underwater conditions. Plus, its light gray/white color on the front, sides, top, and bottom contrasts with the clear back, making it easy for me to monitor the O-ring seal and rear camera controls at a glance.
The built-in, flat, optical glass lens port with a 3-inch diameter is another highlight. It allows attachment of optional, accessory wide-angle and macro conversion lenses as well as color-correction filters, giving me the flexibility to capture the perfect shot in any underwater environment.
However, there is one downside to this action housing – it lacks a strobe connector and access to the camera's flash. While quality photos are still possible with an optional constant light source at any depth or with available sunlight down to about 60 feet, I would have appreciated more connectivity options for even greater creative control.
In summary, the Ikelite Underwater Action Housing has made exploring the depths of oceans and lakes an unforgettable experience. Its scratch-resistant glass lens port, custom ABS-PC blend housing, and compatibility with various accessories make it a top choice for avid underwater photographers. While it may not have the most advanced features and lacks a strobe connector, the overall quality and performance are worth considering for anyone looking to take their underwater photography skills to the next level.

🔗Ikelite Underwater Housing for Canon EOS M10 (200 ft Depth Rating)

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Ikelite's Underwater Housing for Canon EOS M10 is like a trusty, waterproof companion for my beloved camera. It's more than capable of keeping up with my adventurous spirit, offering a depth rating of 200 ft (60m).
The controls on this housing are impressive, allowing me to access all my camera's functions except for the Mobile Device Connection button. A slight negative buoyancy in fresh water means I don't have to worry about it floating away.
But it's not all perfect. The actual buoyancy can vary depending on the lens and port I choose, which can be a bit of a pain. Also, the 1/4-20 thread tray mounting with 3-inch (76mm) spacing is a bit limiting if you're looking for more versatile mounting options.
All in all, Ikelite's housing has been a game-changer for my underwater photography adventures. It's made capturing those magical moments much easier and more enjoyable.

🔗Nauticam Canon EOS R5 Underwater Housing

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I recently had the opportunity to use the Nauticam Underwater Housing for my Canon EOS R5. This housing follows Nauticam's innovative approach, offering compatibility with both EOS R lenses and native RF optics using an adapter. The dimensions of the housing are 357mm x 200mm x 161mm (W x H x D), and it has a depth rating of 100m. It weighs 3.5kg in air, but becomes slightly lighter at -0.5kg in water when including the camera body and battery. The port area is of the N120 type.
One of the standout features for me was its portability. Even with my Canon EOS R5 securely tucked inside, the housing felt sturdy and reliable. It's evident that a lot of thought has gone into the design, making it incredibly user-friendly.
However, there were a few cons to consider. While the housing is generally well-built, the included torque screws for the port attachment feel a bit delicate. Additionally, the integrated vacuum system, though a useful feature, can be a bit sensitive to pressure changes and occasionally needs resetting.
Overall, the Nauticam Underwater Housing for the Canon EOS R5 provided excellent protection and control for my camera while underwater. Despite some minor drawbacks, I would recommend this product to any Canon users looking to take their photography skills below the surface.

Buyer's Guide

Choosing the right Canon underwater camera case can be essential, whether for professional photography or casual photography while exploring the depths. This guide will inform you of the crucial factors to consider prior to making your decision in order to equip you with the ideal underwater camera case for your needs.

1. Type of Underwater Activity

Underwater housings are designed to cater to different activities such as scuba diving, snorkeling, or surf photography. For example, some cases are suitable for deep-sea diving whilst others could be for surface water sports. Hence, it is essential to consider the type of underwater photography you're likely to engage in for you to choose the appropriate housing.
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2. Depth Rating

The depth rating of a case indicates the maximum depth it can withstand without water seeping into the camera. This detail is critical as it ensures the camera stays protected at your desired depth. If you're primarily shooting above water while surfboard, a low depth rating would suffice. However, for professional divers, a high depth rating camera case would be more appropriate.

3. Lens Compatibility

Lens compatibility could restrict your choices. Some underwater camera cases are compatible with wide-angle lenses, others with standard lenses. Depending on your photography requirements, you should choose a case that fits your preferred lens.

4. Ease of Use

Underwater photography often involves quick action. Hence, it’s necessary to select a model that allows simple and swift movement, particularly during those crucial underwater moments. Features such as ergonomic handling, easy-to-use buttons, and controls would be beneficial for smooth photography sessions.
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5. Durability

The durability of the underwater camera cases is another crucial factor to consider. High-quality polycarbonate materials or aluminum bodies are known for their robustness and long-lasting performance. Ensure you select a case designed to withstand the rigors of your photography activities.

6. Price Range

Underwater camera cases can vary significantly in price. The cost is often dependent on factors such as complexity of design, type of materials used, and additional features. While it’s vital to invest in a high-quality case, ensure that you only pay for what you need by prioritizing the features that are most essential for your photography style.

7. Brand Reputation

The credibility and reputation of the brand can be a strong indication of the quality and reliability of the product. Make sure to choose a reputable brand known for producing high-quality waterproof camera housings.
By taking these considerations into account, you will be well-equipped to choose the ideal Canon underwater camera case to suit your specific photography needs.
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FAQ

How deep can a Canon underwater camera case go?

The depth rating varies depending on the specific model and brand of the underwater camera case. Generally, Canon underwater camera cases can withstand depths between 150 to 200 feet (approximately 45 to 60 meters). It's crucial to check the product's specifications to ensure it meets your needs for the depth of water you plan to explore.

Which Canon camera models are compatible with these underwater camera cases?

Almost all the Canon PowerShot series and some EOS DSLR and mirrorless models are compatible with Canon underwater camera cases. Popular models include the PowerShot G7 X Mark III, G5 X Mark II, SX70 HS, and the EOS 90D. Please refer to Canon's compatibility chart for the specific model you own or consider purchasing.
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Can I use my Canon camera in a generic underwater camera case?

While it is possible to use a generic underwater camera case for some Canon camera models, it is highly recommended to use the original Canon underwater camera case designed specifically for your camera model. This ensures proper fit, functionality, and protection for your camera, ultimately extending its lifespan.

How do I clean and maintain my Canon underwater camera case?

After each use, rinse the case thoroughly with clean water and thoroughly dry it with a soft, lint-free cloth. Avoid using any solvents or abrasive cleaners. Keep the seals and O-ring clean and free of sand or grit. Lubricate the O-ring with a silicone lubricant occasionally to ensure a tight seal. Regularly inspect the case for wear, damage, or accumulated debris.

What is the best setting to use on my Canon camera when shooting underwater?

Using the underwater shooting mode (typically designated as "UW" or "sea") is often recommended, as it optimizes the camera settings for shooting in low-light, minimizing backscattering, and increasing color reproduction. Additionally, ensure that you shoot in RAW format to have greater flexibility in post-processing.

How do I ensure a leak-free seal on my Canon underwater camera case?

Before each dive or use, inspect the seals and O-ring for any wear, damage, or accumulated debris. Clean the seals and O-ring thoroughly and apply a silicone lubricant. Secure all latches on the case, ensuring they are fully engaged. Perform a "vacuum test" by submerging the case in a shallow pool or tub of water, and inspect for any visible water or bubbles after about 10 minutes. If everything is dry, your case is properly sealed. Always double-check the seals and latches before every dive or use.

What is the difference between a DSLR and a mirrorless Canon underwater camera case?

The primary differences between a DSLR and mirrorless Canon underwater camera case are their size, weight, and controls. DSLR underwater camera cases tend to be larger and heavier, provide more physical controls, and accommodate interchangeable lenses, offering more flexibility for advanced photographers. In contrast, mirrorless underwater camera cases are more compact, have fewer physical controls, but often yield higher image quality relative to the camera size.

How do I prevent fogging inside the Canon underwater camera case?

Before diving or shooting underwater, put a silica gel desiccant packet or anti-fog gel on the inside of the lens port. This helps absorb any moisture and prevent fogging. Make sure the camera, lens, and case are at the same temperature as your surroundings before sealing the case. When changing lenses, ensure the camera is dry and free of any moisture. Avoid touching any lens elements or the interior lens port, as body oils and moisture can cause fogging.

Can I use third-party strobes with my Canon underwater camera case?

Yes, you can use third-party strobes with some Canon underwater camera cases. However, compatibility depends on the model of your case and the specific strobe. Some strobes may require a dedicated adapter or sync cord to connect to the camera, so it's essential to consult the manufacturer's guidelines for proper installation and compatibility.
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