Financial Technologies, the promoter of scam ridden National Spot Exchange Ltd and struggling MCX, has made a provision of Rs 486 crore in the year ended March 31, 2014 on account of investments in NSEL and other investments.

This has led the company to register a loss of Rs 229 crore in the financial year ended March 31, 2014 against a profit of Rs 329 crore recorded in the same period last year. The company has announced a dividend of Rs 2 a share.

“FTIL has made a provision for equity investments, loans and other outstanding from NSEL for a sum of Rs 259 crore and diminution in value of other investments to the tune of Rs 227 crore resulting in overall provision and diminution expenses of Rs 486 crore,” the company said in a press release on Saturday.

The company has derecognised revenue and interest dues from NSEL to the tune of Rs 25.5 crore, it said.

Depreciation expenses were higher at Rs 5.5 crore as it has revised the estimated useful life of asset with effect from January 1, 2014.

Net sales during the March quarter was down 61 per cent at Rs 55 crore (Rs 141 crore), while it recorded a net loss of Rs 371 crore in the March quarter against a profit of Rs 88 crore in the same period last year.

Reserves available with the company were down 10 per cent at Rs 2,400 crore (Rs 2,668 crore).

Related Topics