The managing director of scam-ridden NSEL has been arrested after months since the NSEL scam broke out
Anjani Sinha the managing director of scam-ridden exchange NSEL has been arrested. The arrest comes after months of sordid facts and revelations that NSEL is involved in a Rs5,600 crore scam that shook the very foundation of trust in the Indian capital markets. It also comes after the enforcement directorate (ED) questioned the managing director.
The NSEL scam happens to be the biggest of the multiple scams that have hit the commodities markets, thanks to poor regulation. However, no action had been taken by authorities so far, until now. Even the Financial Technologies managing director, Jignesh Shah, accused Anjani Sinha of defrauding him, though it remains to be seen whether action will be taken against the promoter company Financial Technologies for lapse in corporate governance.
The impact of poor regulatory framework, disempowered regulator, sloppy supervision and the lack of checks & balances was apparent when commodities markets were just coming to the fore.
Soon after suspicions were mounting that NSEL would default on its payments, the managing director went on record to say that NSEL has sufficient stocks in warehouses to cover the entire open exposure and in the event of any default, stocks will be sold to fulfill payment obligations. However, this never happened. It was found out that the warehouses receipts issued by NSEL were found to be bogus, similar to the one Harshad Mehta used for his scam. Nobody seemed to verify whether the goods actually existed or not in the warehouses. Brokers started giving out contract notes to hundreds of investors backed against just one warehouse receipt. This meant a disaster was waiting to happen.
NSEL soon suspended trading in select products. They announced a payment schedule which fell woefully short also. Some of the biggest brokers were staring at huge losses who mis-sold NSEL products to retail clients. Ironically, even NSEL biggest client, Indian Bullion Market Association (IBMA) is owned by Financial Technologies.
More shockingly, according to Economic Times, it was found out that Anjani’s wife punched as much as Rs40,000 crore of MCX trades, mostly leveraged trades and losses were incurred. No margins were collected either despite losses incurred by her.
BGR Energy has secured its first engineering, procurement and construction (EPC) project worth $246 million for Al Nasiriya gas turbine power plant from Ministry of Electricity, Iraq
BGR Energy Systems Limited, a leading Indian EPC, balance of plant (BoP), power equipment manufacturing and contracting company said it won maiden EPC contract in international power markets worth $246 million for Al-Nasiriya power project having capacity of 500 Megawatts (4 x 125MW) from Ministry of Electricity of Iraq.
In a regulatory filing, BGR Energy said it won $246 million contract includes $240 of EPC and $6 million of piling work. The EPC contract includes American standard design, plant engineering, civil works, electro-mechanical BoP, erection, gas insulated switchyard, installation and maintenance. After signing this EPC contract company’s total order book now stands at Rs13,525 crore.
BGR Energy won this contract on 13 October 2013 in Baghdad, where other international companies from South Korea, like Hyundai and STX, and from Turkey Kineeses, Kayi Lotus and Enka also took part.
On Thursday, BGR Energy Systems closed 0.48% down at Rs112.90 on the BSE, while the benchmark Sensex ended 132 at 20,415
Infotech, global diversified engineering company, in its September ended quarter reported 44% growth in its net profit due to healthy overseas revenues and strong order book. It recorded highest ever net profit, revenues and operating profit this quarter
Infotech Enterprises Ltd, a global diversified engineering, manufacturing, outsourcing and information technology (IT) solution company, in its second September quarter recorded growth of 44% in net profit at Rs72.50 crore from Rs50.31 crore in same a period year ago. This is the highest net profit company has achieved in single quarter.
The company’s September quarter revenue stood at Rs549.30 crore from Rs477.13 crore a year ago period, a growth of 15%. With this company has achieved milestone of revenues worth Rs500 crore and recorded highest revenue ever in its single quarter. Roughly 56% of the revenue contribution came from United States, 28% from Europe and 16% from Asia pacific region. The company earned 50% revenues from overseas hence and was benefited by the depreciating rupee.
The company’s maximum revenues in Q2 came from its core business of delivering engineering solutions which makes up 63% of its revenue. The remaining 36% comes from its utilities, telecom and data transformation, analytics business units.
“In-spite of uncertainties in the global economics and challenges of ramp-downs among few of our large customers, we had a very stable business for past four quarters. The current quarter performance and the strong existing order pipeline make us feel confident that we are back on accelerated growth path. While we will grow our business we are equally confident of a stronger performance in H2 of this financial year,” said by BVR Mohan Reddy, chairman and managing director (MD) of Infotech Enterprises.
The company won key deals and acquired 15 new customers during September ended quarter. Employee addition continues to be strong in second quarter, with gross addition of employees at 1,195 and net addition at 724. This too was the highest addition during any quarter.
The Board of Directors declared an interim dividend of 40% at Rs2 per share in meeting held on 17 October 2013.
On Thursday, due to healthy financial results, Infotech shares made a 52-week high at Rs245.80 and closed 6.50% up at Rs240 on BSE. The benchmark S&P BSE Sensex closed 132 points down at 20415.