 "Listed companies keeping mum on NSEL exposure")
Several listed companies with exposure to the National Spot Exchange Ltd (NSEL) are not informing shareholders of their positions, thereby violating disclosure requirements in the listing agreement.
MMTC, Technocraft Industries, Metkore Alloys and Southern Ispat are some listed firms with exposure to the crisis-hit spot exchange — either as a buyer or a seller. Depending on their exposure and involvement, they face several consequences, ranging from financial loss to even criminal liabilities. But none of these companies have informed the details of their affairs with NSEL.
Sharad Kumar Saraf, convenor of the NSEL Investor Forum and managing director of Technocraft Industries, said: “We are in the process of recovery. So far, it was not considered doubtful. But we may take that step now and inform (the exchanges).”
According to Saraf, Technocraft had an investment of Rs 20 crore. Asked why there was no information to the shareholders for nearly two months since the crisis broke, Saraf said: “We have been receiving part-payments. The last (full) payment made was on July 30. So, it’s only about 40 days. Even after this, we have received part payments.”
Technocraft Industries’ exposure also raises questions on what a manufacturing company was doing in a paired contract investments in a spot exchange.
The figure of Rs 20 crore that Saraf gave is roughly a third of the Rs 64.7-crore profits made by Technocraft in FY13. It is two-thirds of June quarter net profit of Rs 30 crore.
Southern Ispat and Metkore have been named as companies that owe money to NSEL. Metkore was named the buyer of some 23,074 tonnes of ferrochrome and had to pay Rs 114 crore.
On the other hand, Southern Ispat was named the client of Juggnaut projects and owed Rs 24.44 crore towards steel contracts. Various investigative agencies and regulators are probing the Rs 5,600-crore payment crisis and an official report by a high-powered committee of secretaries is expected soon.
MMTC, Technocraft Industries, Metkore Alloys and Southern Ispat are some listed firms with exposure to the crisis-hit spot exchange — either as a buyer or a seller. Depending on their exposure and involvement, they face several consequences, ranging from financial loss to even criminal liabilities. But none of these companies have informed the details of their affairs with NSEL.
Sharad Kumar Saraf, convenor of the NSEL Investor Forum and managing director of Technocraft Industries, said: “We are in the process of recovery. So far, it was not considered doubtful. But we may take that step now and inform (the exchanges).”
According to Saraf, Technocraft had an investment of Rs 20 crore. Asked why there was no information to the shareholders for nearly two months since the crisis broke, Saraf said: “We have been receiving part-payments. The last (full) payment made was on July 30. So, it’s only about 40 days. Even after this, we have received part payments.”
Technocraft Industries’ exposure also raises questions on what a manufacturing company was doing in a paired contract investments in a spot exchange.
The figure of Rs 20 crore that Saraf gave is roughly a third of the Rs 64.7-crore profits made by Technocraft in FY13. It is two-thirds of June quarter net profit of Rs 30 crore.
Southern Ispat and Metkore have been named as companies that owe money to NSEL. Metkore was named the buyer of some 23,074 tonnes of ferrochrome and had to pay Rs 114 crore.
On the other hand, Southern Ispat was named the client of Juggnaut projects and owed Rs 24.44 crore towards steel contracts. Various investigative agencies and regulators are probing the Rs 5,600-crore payment crisis and an official report by a high-powered committee of secretaries is expected soon.