BSE-Financial Results

BSE Limited (Formerly known as Bombay Stock Exchange Limited) Consolidated Financial Result For The Nine Month Ended December 31, 2012
( in Lakhs)
Particulars	For The Quarter Ended 31.12.12 (Unaudited)	For The Quarter Ended 30.09.12 (Unaudited)	For The Quarter Ended 31.12.11 (Unaudited)	For The Nine Month Ended 31.12.12 (Audited)	For The Nine Month Ended 31.12.11 (Unaudited)	For The Year Ended 31.03.12 (Audited)
I. INCOME
a) Operating Income	12,488	12,117	12,630	37,138	38,577	53,758
b) Other Income	1,083	1,009	1,004	3,194	2,960	4,084
Total Income	13,517	13,126	13,634	40,332	41,537	57,842

II. EXPENDITURE
a) Employee Costs	1,914	2,010	1,951	5,943	5,877	7,713
b) Computer Technology Related Expenses	1,886	1,333	1,814	5,237	4,527	6,340
c) Administration and Other Expenses	2,215	1,839	1,554	5,639	4,802	7,236
d) Depreciation	742	680	890	2,033	2,516	3,407
Total Expenditure	6,757	5,862	6,209	18,852	17,722	24,696

III. Profit from operations before Prior Period items, Interest, Exceptional items & Tax	6,814	7,264	7,425	21,480	23,815	33,146
a) Prior Period items (Note 4)	-	201	-	1,027	-	-
IV. Profit from operations before Interest, Exceptional items & Tax	6,814	7,063	7,425	20,453	23,815	33,146
a) Interest	31	28	29	242	94	136
V. Profit from operations before Exceptional items & Tax	6,783	7,035	7,396	20,211	23,721	33,010
a) Exceptional Items (Note 5)	1,756	2,515	1,867	8,284	1,880	6,049
VI. Profit from operations before Tax	5,027	4,520	5,529	11,927	21,841	26,961
a) Extraordinary Item	-	-	-	89	-	-
VII. Profit before tax	5,027	4,520	5,529	11,838	21,841	26,961
a) Tax Expenses	1,264	1,244	1,366	3,265	5,670	6,426
VIII. Net Profit For The Period after tax but before minority Interest & share of associates	3,763	3,276	4,163	8,573	16,171	20,535
Share of Profit / (Loss ) of Associate (Net)	(9)	(16)	(57)	(44)	(57)	(41)
Share of Minority	(590)	(646)	(693)	(1,894)	(2,005)	(2,681)
IX. Net Profit For The Period	3,164	2,614	3,413	6,635	14,109	17,813
Paid up Equity Capital (Face Value Per Share 1 Each)	1,037	1,037	1,035	1,037	1,035	1,035
Reserves (Excluding Revaluation Reserve)	-	-	-	-	-	221,987
Basic and Diluted EPS before Extraordinary Item (Not Annualised)	2.98	2.47	3.23	6.33	13.34	16.85
Basic and Diluted EPS after Extraordinary Item (Not Annualised)	2.98	2.47	3.23	6.26	13.34	16.85

Notes:

1.	The above audited consolidated financial results for the nine months ended December 31, 2012 have been reviewed by the Audit Committee and approved by the Board of Directors on February 26, 2013.

2.	The Consolidated results of the group includes seven subsidiaries, a joint venture and an associate. The results of all the subsidiaries, a joint venture and an associate included in the consolidated results have been reviewed / audited.

3.	As per the definitions of 'business segment' and 'geographical segment', contained in Accounting Standard-17 "Segment Reporting", the Management is of the opinion that as the Exchange's operations comprise of two segments viz. a) Stock exchange activity i.e. facilitating trading of securities and the activities incidental there to and b) Depository activity i.e. providing depository related services, and accordingly following disclosure is made.

( in Lakhs)
Sr. No	Particulars	For The Quarter Ended 31.12.12 (Unaudited)	For The Quarter Ended 30.09.12 (Unaudited)	For The Quarter Ended 31.12.11 (Unaudited)	For The Nine Month Ended 31.12.12 (Audited)	For The Nine Month Ended 31.12.11 (Unaudited)	For The Year Ended 31.03.12 (Audited)
I	Segment Revenue
	(a)Stock Exchange Activity	9,767	9,193	10,491	28,469	30,535	41,805
	(b)Depository Activity	2,682	2,851	2,719	8,487	8,677	11,967
	Total	12,449	12,044	13,210	36,956	39,212	53,772
	Less : Inter Segment Revenue	-	-	-	-	-	-
	Total Income	12,449	12,044	13,210	36,956	39,212	53,772

II	Segment Results
	(a)Stock Exchange Activity	3,992	3,012	4,573	7,439	17,552	19,058
	(b)Depository Activity	1,539	2,217	2,150	5,894	6,500	9,507
	Total	5,531	5,229	6,723	13,333	24,052	28,565
	Add : Unallocated Corporate Income	1,121	1,082	424	3,375	2,325	4,070
	Less : Unallocated Corporate Expenses	1,625	1,791	1,618	4,870	4,536	5,674
	Profit before taxation	5,027	4,520	5,529	11,838	21,841	26,961
	Less : Provision for taxation	1,264	1,244	1,366	3,265	5,670	6,426
	Profit after taxation	3,763	3,276	4,163	8,573	16,171	20,535

					As at	As at	As at
					Dec 31, 2012 (Audited)	Dec 31, 2011 (Unaudited)	March 31, 2012 (Audited)
III	Capital Employed
	(a)Stock Exchange Activity				188,258	190,533	184,537
	(b)Depository Activity				34,757	30,688	32,991
	(c)Unallocated				6,672	5,409	5,495
	Total				229,687	226,630	223,023


4.		Prior Period items comprise reversal of operating income and accrual of certain expenses aggregating 1,027 lakh relating to prior years.

5.	a)	Pursuant to SEBI Circular CIR/DNPD/5/2011 dated June 2, 2011 (BSE Notice no-20110602-18, dated June 02, 2011), permitting stock exchanges to introduce Liquidity Enhancement Schemes (LES) for illiquid securities in their equity derivatives segment, the Exchange has launched a series of Liquidity Enhancement Incentive Programmes (LEIPS) to enhance liquidity in BSE's Futures & Options Segment. The programme was launched on 28th September, 2011 and an expense of 8,047 lakh has been incurred towards the same for the period ended December 31, 2012 ( 1,880 lakh for the period ended December 31, 2011). Considering the special nature of this expense and its impact on the profit of the Exchange, the same has been recognised as an exceptional item

	b)	During the current period the Joint Venture of the Group had implemented a Voluntary Retirement Scheme 2012 for its employees. The expenses on account of the same amounting to 237 lakhs for period ended December 31, 2012 is treated as an exceptional item.

6.		One of the group's subsidiaries suffered a loss by fire at its office premises during April 2012. This has been disclosed as an extraordinary item during the period. Insurance claim for the same has been lodged.

7.		The Securities Contracts (Regulation) (SECC) Regulations, 2012 requires every recognised stock exchange to credit twenty five per cent of its annual profits every year to a fund to guarantee settlement of trades of the recognised clearing corporation(s) which clears and settles trades executed on that stock exchange. Pending clarification from SEBI regarding the norms for sourcing including transfer of profits by stock exchanges to the above mentioned fund, no transfer of profits has been recorded in the books of account as at December 31, 2012.

8.		SEBI has issued Depositories and Participants (Amendment) Regulations, 2012 on September 11, 2012. According to these Regulations depositories are required to establish and maintain an Investor Protection Fund for the protection of interest of beneficial owners and every depository is required to credit twenty five per cent of its profits every year to the Investor Protection Fund. Pending clarification from SEBI no transfer of profits has been recorded in the books of account as at December 31, 2012.

9.		During the period ended 31st December, 2012 the Exchange has received notices from Department of Telecommunication (DoT), Government of India to pay a revised VSAT Network License Fees, Royalty etc. aggregating 14,725 lakh. The Management has filed a reply, after legal consultations, with DoT challenging the claim stating that the demand notices are based on an incorrect interpretation of the existing guidelines/orders. Hence no provision for the same is made in the accounts and has been considered as a Contingent Liability.

10.		The Statutory Auditors have carried out a audit of the financial results for nine months ended December 31, 2012.

11.		Previous period figures have been regrouped / reclassified wherever necessary to correspond with the current period classification / disclosure.


		For and on behalf of Board of Directors
		BSE LIMITED

Mumbai, 26th February, 2013		Ashishkumar Chauhan Managing Director & CEO

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