Downturn of FTIL’s income

Agenda

Introduction

FTIL’s consolidated results

  Increase in legal costs

FTIL’s forfeiture

Conclusion

Introduction Financial Technologies India Limited (FTIL) has been massively

affected after the NSEL payment crisis in July 2013

According to latest financial statements released by FTIL, total

income has fallen considerably

Total Income has fallen to around 72% between financial years ended

March 2013 & March 2015.

According to the consolidated segment-wise results, income from

exchange-based services like trading platforms for currency &

commodity exchanges has dropped

Income from exchange-based services fell to Rs.18.08 crores in the

last financial year.

FTIL’s consolidated results

FTIL could not declare consolidated results for last 2 years after NSEL faced default by borrowers on its platform of Rs 5,600 crores

FTIL has released consolidated financial statements for financial years 2012-13 (amended), 2013-14 & 2014-15 for the first time

This was mainly due to announcements by auditors that NSEL statements for financial year 2012-13 could not be relied upon due to the crisis

 Increase in Legal costs

NSEL-related litigations fees crossed Rs. 100 crores.

FTIL paid Rs.102.73 crores as legal & professional charges in the financial year 2014-15

legal & professional charges amounted to Rs.92.06 crores in the previous year.

In the year ended March 2013, only Rs.22.1 crores was paid as legal fees.

FTIL’s forfeiture

Payment crisis at NSEL attracted litigation in the Company Law Board, Bombay High Court, Supreme Court, & MPID court.

 After NSEL crisis, Forward Markets Commission & Securities & Exchange Board of India declared FTIL an entity unfit to hold a stake in any exchange

FTIL has challenged the regulatory orders

However FTIL was compelled to sell its stake in MCX & Metropolitan Stock Exchange of India Ltd (mSXI)

Conclusion

FT could only complete audit of some group companies & posted a consolidated income from operations of Rs 191.12 crores for 2014-15 against Rs 735.08 crores in 2012-13

NSEL suspended trading amid default on July 31, 2013

In 2013-14, FTIL posted its income at Rs 557.29 crores