Financial Technologies (FTIL) @ Rs 144 (FV Rs 2)~ A Story of Guts and Glory now Guttered ! ?….though Jignesh Shah ,the Founder Chairman and MD of the FTIL Group (MCX,NSEL and others)states this in his message in the FY 13 Annual Report “….these are tough times the Company is facing and Financial Technologies is making all efforts to come out of such situation”
I don’t own any shares of the FTIL Group but I do have some very good friends and associates who work for it and are extremely wise and forward thinking and manage the FTKMC admirably and who graciously invited me for the MCX Equity Exchange Launch at Hotel Trident where our FM,Mr Chidambaram in his inaugural speech lamented Insider Trading and Speculation but amusingly went on to sound the gong for the Exchange’s first and symbolic Future trade !
Media has justifiably gone to town on the NSEL and FTIL Group Plight ~Realms can be written on this and am sure a Best Seller Book too will finally be published to reveal what went wrong ! and was it a deliberate sinster plan right at the outset ! ~ and what is the extent of Political patronage at the highest level that’s keeping the Group alive and kicking till now !
For Now this is all that I’m going to say…….
From Rs 1224 on November 13,2012 last year the Share price of FTIL sank to Rs 102 on August 30,2013 and had recovered since then to Rs 160 levels
However today the Share Price intraday dropped over 10% to Rs 140 levels as yesterday on the eve of the AGM the Auditors Deloitte Haskins & Sells has announced that their report of May 30,2013 on the standalone and consolidated results of FTIL results as on March 31,2013 should no longer be relied on !
Remember the Satyam fiasco and how the Auditors Pricewater House had released a similar note warning that the last 39 quarters of their audited results should not be relied on ! ~ this went all the way back from 2009 to 2001 !
FTIL’s EPS for FY 13 was Rs 70 ~ It’s June Q 1 FY 14 shows Rs 17 ~ but Deloitte now tells us not to rely on their report !
FTIL owns nearly 100% of the troubled National Spot Exchange Ltd (NSEL) which is embroiled in a Rs 5600 crs payment crisis ~ there is more than meets the eye in NSEL ~ FTIL has already lend Rs 173 crs to NSEL to fund payouts to smaller investors ~How in Hell did this hole in NSEL go undetected for so long !? ~ the answer is suspected to lie in that there was hardly any internal control and deliberately so ~ there was no eternal regulation worth mentioning~ the Operators or Borrowers,the Exchange Administration,the Directors and FTIL as the near 100% Owner were all seemingly colluding parties ~thousands of crores of borrowed monies were created for the benefit of just a chosen few ,and some were director related parties,through scheming financial structured products,supposedly backed by physical comfort of commodities in warehouses ~ these products were aggressively hawked to high networth investors by a network of brokers,including leading names like Motilal Oswal,Anand Rathi and India Infoline, for a few additional interest points and rolling commission or brokerage ! ~ Most of these funds are suspected to be diverted away from the exchange