%20LIMITED-128413%202%2006-Jan-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
FINANCIAL TECHNOLOGIES ( |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
12.04.1988 |
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Com. Reg. No.: |
015586 |
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CIN No.: [Company Identification
No.] |
L29142TN1988PLC015586 |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business
: |
Offering Technology and Domain Expertise in Financial Markets. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 81000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Fundamentals are strong and
healthy. Trade relations are reported as fair. Business is active. Payments
are reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
MANAGEMENT NON CO-OPERATIVE.
LOCATIONS
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Registered Office : |
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E-Mail : |
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Website : |
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Corporate Office : |
6th Floor, 601 Bostan House, |
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Tel. No.: |
91-22-67099600 |
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Fax No.: |
91-22-67099066 |
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E-Mail : |
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International Operations : |
33, |
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Tel. No.: |
+ 1-732-6035238 |
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Fax No.: |
+ 1- 732-5493745 |
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Branches : |
Located at: ·
Ahmedabad ·
Chennai ·
·
·
Kolkata ·
Mumbai |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Gignesh Shah |
|
Designation : |
Chairaman cum Managing Director |
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Name : |
Mr. Dewang Neralla |
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Designation : |
Co-Founder and Director – Technology |
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Name : |
Mr. V Hariharan |
|
Designation : |
Director- Technology |
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Name : |
Mr. Manjay Shah |
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Designation : |
Director – Business Development |
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Name : |
Mr. Paras Ajmera |
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Designation : |
Director- Operations and Human Resources |
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Name : |
Mr. Arshad Khan |
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Designation : |
Director- Business Development - MENA |
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Name : |
Mr. Shreekant Javalgekar |
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Designation : |
Director- Finance and Investor Relations |
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Name : |
Mr. Miten Mehta |
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Designation : |
Director – Global Market Development and Communication |
KEY EXECUTIVES
|
Name : |
Mr. Naishadh P Desai |
|
Designation : |
Senior Vice President- Legal and Company Secretary |
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Name : |
Mr. Hariraj Chouhan |
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Designation : |
Vice President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
|
|
|
8,723,388 |
18.93 |
|
|
12,191,418 |
26.46 |
|
|
20,914,806 |
45.39 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
20,914,806 |
45.39 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,199,555 |
6.94 |
|
|
137,533 |
0.30 |
|
|
10,789,005 |
23.41 |
|
|
168 |
- |
|
|
168 |
- |
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|
14,126,261 |
30.66 |
|
|
|
|
|
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2,812,669 |
6.10 |
|
|
|
|
|
|
3,046,247 |
6.61 |
|
|
723,418 |
1.57 |
|
|
4,091,168 |
8.88 |
|
|
113,138 |
0.25 |
|
|
3,838,891 |
8.33 |
|
|
136,259 |
0.30 |
|
|
2,880 |
0.01 |
|
|
10,673,502 |
23.16 |
|
Total Public shareholding (B) |
24,799,763 |
53.82 |
|
Total (A)+(B) |
45,714,569 |
99.21 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
363,968 |
0.79 |
|
Total (A)+(B)+(C) |
46,078,537 |
100.00 |
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Individuals / Hindu Undivided Family%20LIMITED-128413%202%2006-Jan-2011_files/image006.gif){kind=small}
Foreign BUSINESS DETAILS
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Line of Business : |
Offering Technology and Domain Expertise in Financial Markets. |
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Products : |
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GENERAL INFORMATION
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No. of Employees: |
150
(Approximately) (Confirmed by Mr. Rajesh – Accounts Assistance Manager) |
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Bankers : |
·
Union Bank of ·
Axis Bank Limited ·
Deutsche Bank ·
HDFC Bank Limited ·
HSBC Limited |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Joint Venture : |
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Associates : |
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Subsidiaries : |
·
Tickerplant Limited (Tickerplant) ·
IBS Forex Limited (IBS) ·
Atom Technologies Limited (Atom) ·
Riskraft Consulting Limited (Riskraft) ·
National Spot Exchange Limited (NSEL) ·
National Bulk Handling Corporation Limited (NBHC) ·
Financial Technolgies ·
Global Board of Trade Limited (GBOIT) ·
·
Knowledge Assets Private Limited (KAPL) ·
FT Group Investments Private Limited (FTGIPL) ·
Financial Technologies Communications Limited
(FTCL) ·
Global Payment Networks Limited (GPNL) ·
FT Knowledge Management Company Limited (FTKMCL) ·
Indian Bulion Market Association Limited
(Subsidiary of NSEL) ·
Trans- Global Credit and Finance Limited (TGCFL) ·
·
Financial Technologies Middle East FZ-LLC
(Subsidiary of FTME) (Deregistered / liquidated on 25.11.2009 w.e.f. 28.02.2009) ·
Capricorn Fin – Tech (Private) Limited
(Subsidiary of FTME) ·
Bourse Africa Limited (Subsidiary of FTGIPL)
(w.e.f. 15.10.2008) ·
Boursa India Limited ·
ICX Platform (Pty) Limited ·
Credit Market Services Limited (CMSL) ·
Takshashila Academia of Economic Research Limited
(TAER) ·
Apian Finance and Investments Limited ·
Grameen Pragati Foundation (Subsidiary of atom) ·
Baharn Financial Exchange BSC ( C) (BFX)
(Subsidiary of FTME) ·
Financial Technologies ·
BFX Clearing and Depository Corporation BSC (C )
Subsidiary of BFX) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs. 2/- each |
Rs. 300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
46078537 |
Equity Shares |
Rs. 2/- each |
Rs. 92.157
Millions |
Notes:
a) Of the above
i)
33000494 Equity Shares of
Rs. 2/- each fully paid up have been allotted for consideration other than cash
pursuant to scheme of amalgamation.
ii)
538630 Equity Shares of
Rs. 2/- each fully paid-up have been allotted to the employees under employee
stock option (ESOP) Scheme.
b) 1662811 Equity Share of Rs. 2/- each fully
paid up have been allotted against Global Depositary Receipts (‘GDR’) issued by
the company
c) Particulars of options on unissued capital
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
92.157 |
91.767 |
91.767 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
20324.469 |
17405.221 |
14602.008 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20416.626 |
17496.988 |
14693.775 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
4085.170 |
4610.975 |
3994.510 |
|
|
TOTAL BORROWING |
4085.170 |
4610.975 |
3994.510 |
|
|
DEFERRED TAX LIABILITIES |
87.980 |
166.703 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference Account |
52.087 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
24641.863 |
22274.666 |
18688.285 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
873.892 |
531.654 |
380.513 |
|
|
Capital work-in-progress |
1865.267 |
2309.428 |
1692.093 |
|
|
|
|
|
|
|
|
INVESTMENT |
20019.480 |
14444.655 |
13743.256 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.0000 |
10.979 |
|
|
Foreign Currency Monetary Item Translation Difference Account
(FCMITDA) |
0.000 |
352.608 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.390 |
|
|
Sundry Debtors |
604.265
|
840.143 |
189.641 |
|
|
Cash & Bank Balances |
2090.922
|
4407.681 |
3502.472 |
|
|
Other Current Assets |
39.302
|
105.052 |
20.175 |
|
|
Loans & Advances |
1621.661
|
1085.881 |
416.204 |
|
Total
Current Assets |
4356.150
|
6438.757 |
4128.882 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
614.542
|
459.482 |
394.294 |
|
|
Other Current Liabilities |
345.271
|
274.647 |
206.519 |
|
|
Provisions |
1513.113
|
1068.307 |
666.625 |
|
Total
Current Liabilities |
2472.926
|
1802.436 |
1267.438 |
|
|
Net Current Assets |
1883.224
|
4636.321 |
2861.444 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
24641.863 |
22274.666 |
18688.285 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3069.872 |
3343.224 |
1375.564 |
|
|
|
Other Income |
3411.911 |
3718.573 |
12099.213 |
|
|
|
TOTAL (A) |
6481.783 |
7061.797 |
13474.777 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of Trading Goods |
46.373 |
86.455 |
45.804 |
|
|
|
Operating and Other Expenses |
1904.601 |
2252.979 |
881.091 |
|
|
|
Increase in Closing Stock |
0.000 |
0.391 |
[0.390] |
|
|
|
TOTAL (B) |
1950.974 |
2339.825 |
926.505 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4530.809 |
4721.972 |
12548.272 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.156 |
1.397 |
109.314 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4530.653 |
4720.575 |
12438.958 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
58.924 |
72.387 |
23.532 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4471.729 |
4648.188 |
12415.426 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1028.070 |
962.225 |
2802.907 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
3443.659 |
3685.963 |
9612.519 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
11095.989 |
8315.439 |
743.425 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
350.000 |
368.596 |
970.000 |
|
|
|
Final Dividend (Proposed) |
92.157 |
91.767 |
183.535 |
|
|
|
Interim Dividend |
275.717 |
367.069 |
731.466 |
|
|
|
Tax on Dividend |
62.494 |
77.979 |
155.504 |
|
|
BALANCE CARRIED
TO THE B/S |
13759.280 |
1105.991 |
8315.439 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
74.97 |
80.33 |
214.15 |
|
|
|
Diluted |
74.96 |
80.33 |
208.10 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
736.290 |
1092.110 |
|
Total Expenditure |
|
448.740 |
510.670 |
|
PBIDT (Excl OI) |
|
287.550 |
581.440 |
|
Other Income |
|
205.360 |
379.920 |
|
Operating Profit |
|
492.910 |
961.360 |
|
Interest |
|
0.010 |
4.620 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
492.900 |
956.740 |
|
Depreciation |
|
20.120 |
20.290 |
|
Profit Before Tax |
|
472.780 |
936.450 |
|
Tax |
|
21.230 |
89.950 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
451.550 |
846.500 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
451.550 |
846.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
53.13
|
52.20 |
71.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
145.66
|
139.03 |
902.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
85.50
|
66.69 |
275.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.27 |
0.84 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.32
|
0.37 |
0.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
3.57 |
3.26 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
Total Outstanding dues of creditors other than micro and small
enterprises |
614.542 |
459.482 |
394.294 |
|
Total |
614.542 |
459.482 |
394.294 |
RESULTS OF
OPERATIONS
Standalone Financials
On a stand-alone basis, the Company has reported a total income of Rs.
6,481.78 million and net profit of Rs. 3,443.66 million.
Business
• Technology Business:
The Company is providers of end-to-end straight through processing
("STP") technology solutions. The Company offers packaged STP
products, which provide transaction automation solutions for all stages of the
trade life cycle for equity, foreign exchange, commodity markets, and
derivative markets for clients in
The Company provides exchange solutions, brokerage solutions including
front office and back-office solutions, and messaging solutions that provide
online interface between the market constituents. The current clients for
technology business primarily include the exchanges and related constituents
including brokers, fund houses and custodians.
• Exchange Business:
The Company is involved in the incubation of exchanges in underpenetrated
asset classes and markets, such as South East Asia, Middle East, Africa and
The exchange network of the Company provides transaction opportunities
that are transparent and regulated, providing mark-to-market valuation,
clearing house guarantees, fungibility of deliveries and liquidity. It will
provide the opportunity for hedging, cross-listing, margin credits,
carry-forward positions across exchanges, and will create liquidity across the
exchange network based on regulatory framework.
• Ecosystem Ventures Business:
The Company's ecosystem ventures create upstream and downstream
solutions to support its exchanges, including those related to clearing, depository
operations, warehousing infrastructure, information vending, and payment
gateways.
The Company is one of the leading providers of end-to-end STP technology
solutions for exchanges and related constituents. In fiscal 2010, the company
implemented DOME and CnS at the Singapore Mercantile Exchange Pte. Limited,
The Company believes that the ODIN 64-bit version has delivered an
increase in performance, scalability and compatibility of the flagship product
and it was extended to provide support to the currency derivatives segment.
While the revamped flagship products continue to drive growth, the
Company expect Its new products such as ODIN Greek Neutralizer, ODIN ATS,
Advanced Charting, ODIN X plaza, FTNET and DMA LIVE to contribute to growth in
the future. Other product offerings include CnS, STP-Gate, FX-Direct, Net.net
iWin, MATCH, e-Hastakshar and Protector.
The Company constantly pursues opportunities to enhance its existing
product portfolio to be able to deliver value-added solutions appropriate to
the changing business environment. For example, in fiscal 2010, the Company
developed new products and launched new version as outlined below:
• Technical Alerts :
An advanced functionality in ODIN TWS and ODIN Diet applications that provides
customized alerts on regular as well as advanced collection of Technical
indicators to support the trading decision process.
• Net.net on Low Bandwidth
:
A unique trading platform that allows users to trade on low bandwidth
internet connections like data cards, GPRS Connections etc. at faster speed.
• Two Factor Authentication support of IBT Products.
• ODIN :
Support for NSEL (Spot) and NMCE Exchanges in ODIN™ Suite of
Solution.
• ODIN™ ATLAS :
A special trading application with following functionalities.
• Ez Jobber
A unique functionality that allows Jobbers to effectively and
efficiently execute orders at lightening speed in various market segments.
• Ez Trader :
A functionally that allows traders to program their execution to capture
a favorable price movement in underlying stocks / contracts effectively based
on the progression parameters defined by the user.
• ODIN ATS :
An automated trading application with "Ez Tracker"
functionality that allows users to create and reverse positions in the selected
underlying stock / contract automatically based on the parameters set.
• Match :
Support for NSE's Interest Rate Futures (IRF) segment in Match
Suite of solution.
• STP-Gate :
This year they have launched new Version / optimized version of
STP-Gate for handling of Volumes along with speed and upgraded Hardware /
Software at the backend.
• Enhanced version of STP-Gate product suite for superior connectivity,
operational efficiency and complete automation.
• ESG :
Enterprise Solutions Group has the following verticals; Technology
Consulting, Process Consulting, Quality Assurance Services and Facility
Management. They have started a new service which offers the clients Co-location
along with FMS.
For this service, called EQS (Enterprise Quality Services), they have
tied up with Netmagic to provide the datacenter facilities. A dedicated team of
engineers sits out of the Netmagic office in Vikhroli to support the clients
who have availed this service. Within seven months of incorporation of this
service, they have three clients viz. Bonanza, R. K. Global and Celebrus
Capital
• DOME
During fiscal 2009-10, the flagship product suite for exchange solutions,
DOME (Distributed Order Matching Engine) and clearing and settlement solution -
CnS, released its new versions with enhanced performance and functionalities.
The upgraded DOME application was deployed at MCX and was also installed at
MCX-SX and NSEL. As part of exchange suite, new solutions like FIX Engine,
Exchange Direct and exchange were successfully launched at various exchanges.
• During the fiscal 2009-10, FTIL joined the STAC Benchmark
Council™ to help define industry-standard performance metrics for trading
technology solutions. The STAC Benchmark Council is a global industry body
consisting of leading trading organizations and vendors, facilitated by the
Securities Technology Analysis Center (STAC). The Council develops standard
benchmarks for technology used in the capital markets. End-user firms such as
brokers, hedge funds, exchanges, and alternative trading systems control the
STAC Benchmarks™ through their votes, keeping the benchmarks tied to real
business needs.
The Company's experience, knowledge and domain understanding of
technology, the financial services industry and exchanges along with its
relationships with various market constituents provides a strong platform for
incubation of exchanges. These exchanges have facilitated better price
discovery, risk management and structured finance.
The key components of the Company's exchanges business are companies
promoted by it, its subsidiaries, associates and joint venture companies,
including; Multi Commodity Exchange of India Limited ("MCX"), Dubai
Gold and Commodities Exchange ("DGCX"), IBS Forex Limited ("IBS
Forex"), National Spot Exchange Limited ("NSEL"), Indian Energy
Exchange Limited ("IEX"), MCX Stock Exchange Limited ("MCX-SX"),
Singapore Mercantile Exchange Pte. Limited ("SMX"), Global Board of
Trade Limited ("GBOT"),
AWARDS /
RECOGNITION
The Company received the following awards and recognition during the
year:
• Financial Technologies was ranked No.1 in terms of 10-year profit
growth by Business Today's ranking of
• Financial Technologies Group won the 4th Employee Branding Award for
Innovation in Retention Strategy-Global HR Excellence Award in March 2010.
•
Group Companies received the following awards and recognitions during
the year:
• MCX was awarded the NASSCOM Social Innovation Honours: for Gramin
Suvidha Kendra, a CSO initiative with India Post, for exemplary use of IT in
areas of social transformation, social change and development in February 2010.
• Indian Energy Exchange (IEX) won the "Best E-enabled customer
platform" at the India Power Awards on 17th November, 2009 in
• Best Commodity Exchange Award: MCX was honored as the "Best
Commodity Exchange for the Year 2009" in the 6th India International Gold
Convention 2009 (IIGC) held at
SUBSIDIARIES
During the year the Company incorporated / set up / de-registered the
following subsidiary / stepdown subsidiary Companies namely:
I) Financial Technologies Singapore Pte Limited (FTSPL)
FTSPL was incorporated on 15th April, 2009, as a wholly owned subsidiary
of the Company. Financial Technologies Singapore Pte Limited was mainly
incorporated as an approved Investment Holding Company of Singapore Mercantile
Exchange Pte Limited for complying with local Regulatory requirements .viz.,
Monetory Authority of Singapore (MAS).
II) BFX Clearing and Development Corporation (BCDC)
A step-down subsidiary viz., BCDC was incorporated on 29th March, 2010.
Being the first financial year of BCDC which will end on 31st March, 2011, the
financial statements of BCDC are not attached.
III) Financial Technologies
The Company's Step-down subsidiary viz., FTME FZ LLC, Dubai, was
de-registered with effect from 28th February, 2009 as per the De-registration
certificate dated 25th November, 2009, issued by Dubai Technology and Media
Free Zone Authority.
The Company has been granted exemption for the year ended 31st March,
2010, by the Ministry of Corporate Affairs from attaching to its Balance Sheet,
the individual Annual Reports of its subsidiary companies. In terms of the
approval, Balance Sheet, Profit and Loss Account, Report of the Board of
Directors and Auditors of the Subsidiaries have not been attached with the
Annual Report of the Company.
These documents will be made available upon request by any member of the
Company interested in obtaining the same. However, as directed by the Central
Government, the financial data of the subsidiaries has been furnished under
'Statement Regarding Subsidiary Companies', which forms part of the Annual
Report. Further, pursuant to Accounting Standard AS-21 issued by the Institute
of Chartered Accountants of India, Consolidated Financial Statements presented
by the Company includes financial information of its subsidiaries.
The statement pursuant to Section 212 of the Companies Act, 1956,
containing details of subsidiaries of the Company, forms part of the Annual
Report.
OUTLOOK
The Company is focused on developing intellectual property rights
catering to financial markets and trading industry. Globalization,
deregulation, advances in technology, innovation in products, and increasingly
sophisticated market participants offer significant opportunities for expanding
the Company's markets and are expected to remain key determinants for sustainable
growth.
Technology infrastructure has emerged as one of the key determinants of
efficiency in transaction processing within exchange markets.
The Company intends to continue to expand its customer base by
introducing new products and new technologies and capabilities.
The Company's flagship product, ODIN Suite, has evolved over last 10
years and has made transactions between market participants efficient and
technologically advanced.
The Company's philosophy is to transform markets by creating technology
enabled exchange trading platforms that offer a transparent pricing mechanism
to mitigate counterparty risks associated with non-transparent products traded
off-exchange.
By working closely with various domestic and international associations
and exchanges, the Company intends to introduce global products customized to
the local needs of individual markets.
The Company believes that through technology, its exchanges will achieve
cost and time efficiency for various settlements and other day to day
operations in the exchanges. The Company believes that there is a growth
potential for its ecosystems applications in
The Company intends to use its ecosystem applications to improve and
enhance the exchange business. The Company also intends to leverage its
relationships with its institutional participants to expand its customer base,
and use its ecosystem applications to facilitate access to exchanges,
information and payment modes in underpenetrated rural areas.
Fixed Assets:
·
·
·
Building
·
Improvements to Leasehold Premises
·
Office Equipments
·
Computer Hardware
·
Furniture and Fittings
·
Vehicles
·
Trade Mark
·
Technical Knowhow
·
Computer Software
UNAUDITED
FINANCIAL RESULTS (STAND ALONE) FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER
30, 2010
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.09.2010 |
Half Year Ended 30.09.2010 |
|
(Unaudited) |
(Unaudited) |
|
|
1 (a) Net Sales/ Income from Operations |
1037.765 |
1718.541 |
|
(b) Other Operating Income |
54.347 |
109.861 |
|
Total Income form Operations |
1092.112 |
1828.402 |
|
2. Expenditure |
|
|
|
a) Purchase of traded goods |
11.760 |
20.458 |
|
b) Employees Costs |
308.603 |
216.509 |
|
c) Depreciation / Amortisation |
20.285 |
40.408 |
|
d) Rent |
51.881 |
100.525 |
|
e) Other Expenditure |
122.930 |
235.540 |
|
f) Total |
515.459 |
984.324 |
|
3. Profit from operations before other Income, Interest and
Exceptional Items |
576.653 |
844.078 |
|
4. Other Income |
364.416 |
569.778 |
|
5. Profit Before Interest and Exceptional
Items |
941.069 |
1413.856 |
|
6. Interest |
4.622 |
4.634 |
|
7. Profit from ordinary activities before
tax |
936.442 |
1409.222 |
|
8. Tax expenses (net of MAT Credit) |
89.949 |
11.178 |
|
9. Net profit for the period |
846.498 |
1298.044 |
|
10. Paid-up Equity Share Capital (Face Value
Rs. 2/- per share) |
92.157 |
92.157 |
|
11. Reserve excluding Revaluation Reserve |
-- |
-- |
|
12. Earning per Share |
|
|
|
a) Basic (Rs.) |
18.37 |
28.17 |
|
b) Diluted (Rs.) |
18.37 |
28.17 |
|
13. Public Shareholding |
|
|
|
a) Number of Shares |
25163731 |
25163731 |
|
b) Percentage of shareholding |
54.61 |
54.61 |
|
14. Promoters and promoter group
shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
- Number of shares |
Nil |
Nil |
|
- Percentage of Shares (as a % of total
Shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares (as a % of total
share capital of the company) |
Nil |
Nil |
|
b) Non - encumbered |
|
|
|
- Number of shares |
20914806 |
20914806 |
|
- Percentage of Shares (as a % of total
Shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of shares (as a % of total
share capital of the company) |
45.39 |
45.39 |
Notes:
- The above unaudited financial results, have been reviewed by the Statutory
Auditors, recommended by the Audit Committee and approved by the Board of
Directors of the company at its meeting held on November 9, 2010.
- The Board of Directors in their meeting held on November 9, 2010
have declared second Interim dividend of Rs. 2/- per Equity share of face
value Rs. 2/- each (i.e. @ 100%) on equity share capital of the company.
- The company, as a part of its core business strategy, promoters and
Invests in new ventures that utilize its technological capabilities and
domain expertise towards creating world class enterprises. The investment
in each such venture is assessed for it risks and is limited to a
pre-determined lever and will generate returns after the venture start
ramping-up operation in about 2 to 4 years time frame. The company, as
part of its non-linear business model, will continue to unlock value by
broadening the Investor base of its ventures.
- The company has investments aggregating Rs. 9585.304 Millions in certain
subsidiary companies and a joint venture company and loans and advances/
debtors aggregating Rs. 1416.280 Millions as at September 30, 2010 are
receivable form these entities. Thes entities are at various stages of
executing their business plans/ commencing operations which is expected to
result into profitability. These entities have continuing losses (share of
aggregate losses to date Rs. 3509.366 Millions) Including on account of
expensing out startup costs and costs relating to research and development
activities. On an evalust on of the business plans for these entities, a
provision for other than temporary diminution of Rs. 569.026 Millions has
been made during earlier year which is considered adequate. The company
expects that the value of the investments in these entitities will be
unlacked at appropriate times.
- During the year ended March 31, 2010 the company had sold 71875
million equity shares of Rs. 1/- each at Rs. 35/- per share in an unlisted
company to an investor under a share purchase agreement which, inter alia,
included a covenant for a price reset, in the event of certain conditions
not being met within an prescribed time frame, which has not arisen.
Accordingly, no liability is due for recognition in terms of Accounting
Standard 29.
- Other Income Consists of:
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.09.2010 |
Half Year Ended 30.09.2010 |
|
(Unaudited) |
(Unaudited) |
|
|
a) Foreign exchange gain/ loss (Net) |
[15.497] |
[4.173] |
|
b) Profit on sale/ disposal of investments
(net) |
192.047 |
223.617 |
|
c) Dividend income |
147.981 |
247.503 |
|
d) Diminution in value of investments
(reversal/ charged) (Net) |
3.272 |
1.489 |
|
e) Others (net) |
36.613 |
101.342 |
|
|
364.416 |
569.778 |
7. During the quarter ended September 30, 2010,
the company has made additional long term investments aggregating Rs. 350.008
Millions in equity share of subsidiaries.
8. Segment wise Revenues and Results as per
clause 41 of listing agreement.
|
Particulars |
Quarter Ended 30.09.2010 |
Half Year Ended 30.09.2010 |
|
(Unaudited) |
(Unaudited) |
|
|
Segment Revenue |
|
|
|
STP Technologies/ Solutions |
1014.121 |
1665.420 |
|
Others |
77.991 |
162.972 |
|
Total Income form operations |
1092.112 |
1828.402 |
|
|
|
|
|
Segment Results |
|
|
|
STP Technologies/ Solutions |
738.656 |
1128.785 |
|
Others |
18.089 |
50.751 |
|
Total |
756.745 |
1179.536 |
|
Less: Interest |
[4.622] |
[4.634] |
|
Add: Unallocable Income |
364.416 |
569.778 |
|
Less: Unallocable Expenses |
[180.092] |
[335.458] |
|
Profit before tax |
936.447 |
1409.222 |
Notes:
i)
Segment have been
identified in accordance with the Accounting Standard (AS 17) “Segment
Reporting” considering the organization structure and the return/ risk profits
of the business.
ii)
STP Technologies/
solutions segment represents straight through processing solutions and includes
an Integrated mix of various products, projects and activities incidental
thereto. Others segment represents trading activities, process management
services and shared business support and IT Infrastructure sharing services.
iii)
Due to diversified nature
of business, significant assets are interchangeably used between segments and
the management believed that it is currently not practicable to provide segment
disclosure relating to total assets and liabilities since a meaningful
segregation is not possible.
9. Statement of
Assets and Liabilities
(Rs. In Millions)
|
Particulars |
As on 30.09.2010 Rs. In Millions |
|
Shareholders Fund: |
|
|
a) Capital |
921.157 |
|
b) Reserve and Surplus |
21363.884 |
|
Loan funds |
4065.260 |
|
Deferred Tax Liability (net) |
30.765 |
|
Foreign currency Monetary item Transaction
Difference Account (FCMITDA) |
48.498 |
|
Total |
25600.564 |
|
|
|
|
Fixed Assets |
2853.584 |
|
Investments |
20495.223 |
|
Foreign currency monetary Item Transaction
Difference Account (FCMITDA) |
-- |
|
Current Assets, Loans and Advances |
|
|
a) Sundry Debtors |
883.808 |
|
b) Cash and Bank Balances |
1827.527 |
|
c) Other Current Assets |
143.137 |
|
d) Loans and Advances |
2029.381 |
|
|
4888.853 |
|
Less: Current Liabilities and
provisions |
|
|
a) Liabilities |
815.599 |
|
b) Provisions |
1818.497 |
|
|
2637.096 |
|
Net Current Assets |
2251.757 |
|
Total |
25600.564 |
|
* Includes investment in mutual funds |
8148.659 |
|
Aggregate of cash and bank balance and
investments in mutual funds |
9976.186 |
10. No. of Investor complaints (i) at the beginning
of the quarter : Nil (ii) received during the qauarter : 5 (iii) disposed off:
5 and (iv) unresolved at the end of the quarter : nil
11. Present year/ period figures have been
regrouped/ reclassified, wherever necessary, to conform to current period’s
presentation.
PRESS RELEASE:
Financial
Technologies (Standalone) operating revenue increased by 48% to Rs. 1,092
million (Q-o-Q) for the quarter ended September 30, 2010
Profit from
Operations before Other Income and Interest (Standalone) increased by 116% to
Rs. 577 million (Q-o-Q) for the quarter ended September 30, 2010
Net Profit
(Standalone, excluding capital gain on shares) increased by 54% to Rs. 696
million (Q-o-Q) for the quarter ended September 30, 2010
Declares interim
dividend of 100% on the face value of Rs 2/- per share Total interim dividend
for FY 2010-11 so far - 200% Mumbai, November 09, 2010:
Financial Technologies (India) Limited (Financial Technologies), the
global leader in offering technology solutions and domain expertise for
creating and operating financial markets for multi asset class, announced today
its un-audited financial results for the quarter ended September 30,2010
• Financial Technologies (Standalone) operating revenue increased by 48%
to Rs. 1,092 million (Q-o-Q) for the quarter ended September 30, 2010 from Rs.
736 million in the last quarter
• Profit from Operations before Other Income and Interest (Standalone)
increased by 116% to Rs. 577 million(Q-o-Q) for the quarter ended September 30,
2010 from Rs.267 million in the last quarter
• Net Profit (Standalone, excluding capital gain on shares) increased by
54% to Rs. 696 million(Q-o-Q) for the quarter ended September 30, 2010 from Rs.
452 million in the last quarter
• The board declared interim dividend of 100% on the face value of Rs
2/- per share
Standalone
performance for the half year ended September 30, 2010:
H1 FY2010-11 (Apr - Sept 2010) vs. H1 FY2009-10 (Apr - Sept 2009)
• Operating revenue increased by 27% to Rs. 1,828 million
• Profit from Operations before Other Income and Interest (Standalone)
increased by 32% to Rs.844 million
• Net profit excluding capital gain on shares increased by 39% to Rs.
1,148 million.
Commenting
on Financial Technologies’ Q2 FY 2010-11 performance, Dewang Neralla, Whole
Time Director, said:
“We have witnessed a yet another strong quarter. Operating
revenue increased by 48% to Rs. 1,092 million quarter on quarter. Net profit
excluding capital gain on sale of shares increased by 54% to Rs. 696 million
quarter on quarter. We are confident that the company is well positioned for
long term growth.
This quarter the focus has been on execution. Two of our
international exchanges went successfully live; SMX commenced operations on August
31, 2010 in
On the domestic front, we have experienced a steady growth.
MCX witnessed 53% Y-o-Y growth in volumes with 84% market share, MCX-SX
garnered 52% market share in FXDerivatives. IEX maintained its leadership
position with 87% market share in electricity trading. NSEL introduced an array
of unique investment products like e-gold and e-silver. Eco system ventures
like NBHC, ATOM and Ticker have also witnessed growth over the quarter.”
About
Financial Technologies (
(NSE:
FINANTECH, BSE: FINTECH, Bloomberg: FTECH:IN)
Financial Technologies (India) Limited is a US$ 1.19 billion
(market capitalization on BSE price as on September 30, 2010), Financial
Technologies Group (FT Group) is among the global leaders in offering
technology IP (Intellectual Property) and domain expertise to create and trade
on next generation financial markets, that are transparent, efficient and
liquid, across all asset classes including - equities, commodities, currencies
and bonds among others.
The FT Group operates one of the world’s largest network of
ten exchanges connecting fastgrowing economies of Africa,
The business of creating and operating new generation
tech-centric financial markets allows us to build unprecedented shareholder value
through a non-linear business model and also help democratize global trade,
transform economies, and empower the common man, unlocking value from the
middle and bottom of the socio-economic pyramid.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.