CSE reduces cash loss in '03-04

Despite a meagre turnover, the beleaguered Calcutta Stock Exchange (CSE) has reduced its cash loss in 2003-04.

According to the latest balance sheet, the exchange has made a loss of Rs 1.80 crore in the financial year ended March 31, 2004. This is marginally higher than the previous year.

CSE officials claimed that the marginal increase in cash loss is due to the provisioning of bad and doubtful debt in 2003-04.

"There was no provision for doubtful debts in 2002-03. We are making the provision for the first time as we feel that these debts cannot be recovered. CSE had tried its best to recover those but without any effect," an official said.

According to the balance sheet, CSE made a loss of Rs 1.67 crore in 2002-03, which is Rs 13 lakh lower than that of 2003-04. But it has made a provision of Rs 51.56 lakh for doubtful debt in 2003-04.

"If you take out that then the cash loss would be much lower than the previous year," added an official.

CSE's income has dropped from Rs 12.24 crore in 2002-03 to Rs 10.03 crore in 2003-04, which is not unexpected. The drop in income was mainly due to fall in income from C-star system. C-star or income from trading come down drastically from Rs 62.26 crore in 2002-03 to Rs 18.67 crore in 2003-04.

The falling interest regime has taken its toll on CSE too. Its income from fixed deposits reduced by more than Rs 40 lakh due to fall in rate of interest.

"We have cut down our expenses drastically. Besides, CSE has contributed Rs 13 lakh in 2003-04 to the customer protection fund," added an official.