Paras Ajmera too resigns from MCX board

With the resignation of Paras Ajmera, the country’s largest commodity exchange would be controlled by people who are not promoters

Paras Ajmera, the lone nominee director from Financial Technologies India Ltd (FTIL), on the board of Multi Commodity Exchange of India Ltd (MCX) has resigned. FTIL is the main promoter of MCX. This leaves complete control of the country's largest commodity exchange in the hands of people who are non-promoters.

 

The resignation comes amid the continuing Rs5,600 crore payment crisis at the FTIL-promoted National Spot Exchange Ltd (NSEL).

 

In a regulatory filing, MCX said, “FTIL has withdrawn the nomination of Paras Ajmera, shareholder director, from the board of MCX with effect from close of business hours on 12 November 2013 consequent to his resignation from MCX board.”

 

FTIL may nominate another person on MCX board, however this cannot be confirmed.

 

On 31st October, Jignesh Shah, the promoter of MCX resigned as non-executive chairman of the commodity exchange. This followed the notice issued by Forward Markets Commission (FMC) to Shah questioning his ‘fit and proper’ status.

 

As reported by Moneylife, following the resignations of Shah and Ajmera, the country's largest commodity exchange would be now run by all nominated directors. This not only raises a big question over the future of MCX but also makes foreign investors to re-consider their decision to stay invested. After all, who would be interested, if there is nobody to grow the company?

 

While commodities market regulator FMC has appointed six directors, the National Bank for Agriculture and Rural Development (NABARD) has nominated one director on the MCX board of 11 members. There are three representatives from banks as shareholder director on MCX board. This includes KN Raghunathan (general manager for treasury at Union Bank of India), Sanjaya Agarwal (general manager for treasury and investment at Bank of Baroda) and P Paramasivam (general manager at Corporation Bank).

 

At present, RM Premkumar, nominated by the commodity market regulator is the chairman of MCX.

 

For the September quarter, MCX reported 67% decline in its net profit at Rs27.04 crore against Rs81.40 crore in the year-ago period.

 

The performance of MCX has been hit badly due to the imposition of commodity transaction tax (CTT) since July and also because of the recent payment crisis at NSEL.

 

MCX closed Wednesday flat at Rs432.7 on the BSE, while the 30-share benchmark ended marginally down at 20,194.

User

Infinite Computer Q2 net profit falls 19% on lower revenues

Infinite Computer Solutions September quarter net profit fell 19% due to lower revenues

Infinite Computer Solutions (India) Ltd, an information technology (IT) service provider, reported a 19% fall in its second quarter net profit on lower revenues.
 

For the quarter to end-September, Infinite Computer said its net profit declined to Rs19.4 crore from Rs23.8 crore while total revenues fell 24% to Rs100.5 crore from Rs132.1 crore, same period a year ago.
 

During the quarter, the company’s revenues from its telecom vertical, as a share of total revenues decreased to 36.5%, as compared to 39.2% in a year ago period. Infinite Computer’s product engineering mobility and internet protocol (IP) leveraged businesses contributed to 27% of its revenues, while healthcare vertical contribution stood at 16.8%. Revenues generated from other services stood at 19.70%.
 

During September quarter Infinite computers has increased footprint in Europe with its European headquarter at Munich in Germany.
 

Infinite Computer added six clients during September quarter and its global employee headcount stood at 5,170 as on 30 September 2013.
 

During the second quarter, the company promoters increased thier shareholding to 70.73% from 67.47% after buying shares worth of Rs20.95 crore through buy back offer at re-purchase price of Rs107.03 per share.
 

Infinite Computer Solutions closed Wednesday 3.4% down at Rs119.5 on the BSE, while the S&P BSE Sensex ended marginally down at 20,194.
 

For more stock results, check out this page

User

SBI Q2 net profit falls 35% on higher costs, provisioning for NPAs

The bank reported lower net profits due to higher operating cost, provisioning and slack in retail loans despite recording higher savings deposits

State Bank of India (SBI), reported a 35% fall in its second quarter net profit due to higher provisions to hedge against the now familiar script of rising bad loans.
 

For the quarter to end-September 2013, the country’s largest lender said its net profit fell to Rs2,375 crore from Rs3685 crore while its total revenues, including interest income, increased 13% to Rs37199.9 crore from Rs32953.5 crore, same period last year.
 

During the second quarter, SBI said its net interest income (NII) increased to Rs12,251 crore from Rs10,974 crore from September 2012 quarter, an increase of 11.64%. The lender’s domestic net interest margin (NIM) was pegged at 3.51%, lower than 3.77% recorded in the same period last year.
 

For the quarter to end-September 2013, the company’s operating expenses increased 32.31% to Rs12,251 crore, from Rs10,974 crore. Likewise, its staff expenses rose 35.94% to Rs5,819 crore.
 

The bank reported strong current account-savings account (CASA) ratio of 43.58%, with savings bank deposits touching all time high at Rs4,45,443 crore (a 12.33% year-on-year increase). The average cost of capital inched up to 6.32% for the current quarter when compared to 6.30% for the same quarter last year. Total deposits of the bank stood at Rs11,33,644 crore, up 14.01% when compared to the 30 September 2012.
 

The company’s advances were driven by the corporate sector and less by the retail sector. The bank saw increase in advances by 36.17% to Rs1,45,969 crore for the large corporate sector while retail sector saw just Rs1,91,760 crore sanctioned, a 16.90% increase.
 

The company’s return ratios are disappointing. As on 30 September 2013, the company’s return on assets stood at 0.69%, lower than the 1.07% it recorded in September 2012.
The return on equity plummeted to 11.77% in September 2013 as against 18.18% recorded in the same period last year.
 

The company’s assets quality saw mixed performances. The gross NPA stood at 5.64 while net NPAs stood at 2.91, even though fresh NPAs declined 39.23% on a sequential basis. Net accretion to NPA stood at Rs3,315 crore, down 13.23%.

 

During the quarter, the bank revised its base rate by 20 basis percentage points (bps) from 9.80% pa to 10.00% pa and benchmark prime lending rate by 20 bps from 14,55% pa to 14.75% pa, with effect from November 7th.

At 3.40pm Wednesday, SBI was trading 1.3% up at Rs1,697.8 on the BSE while the S&P BSE Sensex was marginally down at 20,194.

For analysis on other stocks and companies, check

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)