Mumbai: Crisis-hit Financial Technologies India Ltd (FTIL) reported a net loss of Rs 371.25 crore for the quarter ended March 31, 2014 due to lower sales and provisions made for doubtful loans and advances. It had reported a net profit of Rs 87.81 crore in the year-ago period.
Total income fell by 69 per cent to Rs 59.21 crore during the fourth quarter of last fiscal from Rs 188.09 crore in the corresponding period of the previous year, FTIL said in a BSE filing. Profit was down during the period under review as it made a provision of Rs 350.24 crore for doubtful loans, advances and trade receivables that pertain to subsidiary NSEL and other investments.
The same was Rs 95 lakh in the same period of the previous fiscal. For the full fiscal, the company reported a net loss of Rs 228.54 crore against a net profit of Rs 322.88 crore in the previous year. Total income for the full financial year declined to Rs 462.13 crore from Rs 657.41 crore in 2012-13. FTIL's Whole Time Director Dewang Neralla said: "Profit before provisions, diminution in long-term investment and taxes for the financial year ended March 31, 2014 stands at Rs 302 crore."
"The company has adopted a conservative approach and has made a provision of Rs 486 crore during the year," he added. This provision includes provision of Rs 259 crore for equity investments, loans and other outstanding from NSEL and Rs 227 crore for diminution in value of other investments. FTIL's subsidiary National Spot Exchange Ltd (NSEL) is facing Rs 5,600 crore payment crisis after the government in July last year, had ordered NSEL to suspend most spot trading contracts in view of violation of certain regulatory norms.
FTIL has been declared unfit by the Forward Markets Commission to run an exchange and ordered to pare its stake in Multi Commodity Exchange (MCX) to 2 per cent from 26 per cent at present. FTIL is the in process of divesting its stake. Meanwhile, the company's board has recommended a final dividend of Rs 2 per share.
