Higher expenses see BSE net profit plunge by 90%

Our Markets Bureau

Mumbai, Dec 10: Sharp surge in expenses of The Stock Exchange, Mumbai (BSE) has resulted in its net profits plunging during the year to March 2001.

The much-awaited BSE balance sheet was released to its members last week. Members of the BSE are scheduled to meet on December 28 at the annual general meeting (AGM) to consider and adopt the accounts for the year.

According to the annual report, a sharp surge of 70 per cent in expenses saw BSE’s net profit for the year dip 90 per cent to Rs 5.20 crore against Rs 52.26 crore in 1999-2000. Income was flat during the year under review. Some of key factors which contributed to the fall in net profit was higher depreciation charges during the year, aggreggating Rs 63.18 crore against Rs 31.15 crore last year, computer maintenance and service charges were doubled at Rs 17.88 crore from Rs 8.73 crore in the previous year.

The total income for the financial year showed negligible improvement at Rs 139.04 crore, as against Rs 130.07 crore reported last year, while the expenditure column for the year to March 2001 really shook the balance sheet. Expenses for year to March 2001 was up at Rs 133.44 crore from Rs 77.81 crore.

On the income side, listing fees showed a marginal improvement at Rs 12.02 crore, compared to Rs 11.90 crore, charges recovered from members was up at Rs 65.40 crore, as against Rs 58.11 crore, while income from investments and deposits slid to Rs 47.11 crore as compared to Rs 48.27 crore in 1999-2000. The newly introduced derivatives segment fetched BSE Rs 75.15 lakh, which was absent in the corresponding period last year.

Investments for the year to March 2001 was down to Rs 132.52 crore, as against Rs 666.83 crore, while fixed assets was up at Rs 99.58 crore, compared to Rs 62.60 crore.

During the year membership increased by 55, thus taking the total membership to 710.