Event Date: April 11, 2024
The document is a review report and the consolidated unaudited financial results of the National Stock Exchange of India Limited (NSE) and its subsidiaries for the quarter and half-year ended September 30, 2024. The review was conducted by Price Waterhouse & Co Chartered Accountants LLP, addressing the Board of Directors of NSE.
Review Scope and Basis:
The review encompassed the consolidated unaudited financial results, including the Statement of Consolidated Unaudited Assets and Liabilities as of September 30, 2024, and the Statement of Consolidated Unaudited Cash Flows for the half-year ended on that date. The statement has been submitted to comply with Regulation 33 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, read with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The review was conducted as per the Standard on Review Engagements ('SRE') 2410, issued by the Institute of Chartered Accountants of India. The objective was to obtain moderate assurance that the Statement is free of material misstatement. The procedures performed were substantially less in scope than an audit.
Key Entities Included:
The consolidated financial results include those of the Holding Company (NSE) and its subsidiaries, as well as the share of net profit after tax and total comprehensive income of its associate companies. A detailed list of these entities, including their names and nature of relationship (subsidiary or associate), is provided. Significant subsidiaries include NSE Clearing Limited, NSE Investments Limited, and NSE IFSC Limited. Key associate companies include National Securities Depository Limited, Power Exchange India Limited, and Protean eGov Technologies Limited.
Conclusion:
Based on the review conducted and the reports of other auditors, nothing came to the attention of Price Waterhouse & Co Chartered Accountants LLP that would suggest the Statement has not been prepared in accordance with the Indian Accounting Standard 34 and other accounting principles generally accepted in India, or that it contains any material misstatement. The conclusion is not modified regarding specific matters discussed in the report.
Attention Matters:
The report draws attention to Note 2 of the Statement regarding orders passed by SEBI related to preferential access to tick-by-tick data at the Holding Company's Colocation facility, Dark Fiber point-to-point connectivity and Governance and Conflict of Interest matters and the adjudication orders in relation to these matters. The future outcome of these matters is uncertain, however, based on the legal opinion obtained by the Holding Company, except for the penalty amount of Rs. 100 crores, no provision has been recognized towards the above matters. The conclusion is not modified in respect of this matter.
Financial Highlights (Consolidated):
The interim financial information of two subsidiaries and consolidated financial information of two subsidiaries reflect total assets of Rs. 43,243.96 crores and net assets of Rs. 7,917.18 crores as at September 30, 2024 and total revenues of Rs. 966.85 crores and Rs. 1,863.85 crores, total net profit after tax of Rs. 1,026.31 crores and Rs. 1,622.13 crores and total comprehensive income of Rs. 1,026.53 crores and Rs. 1,623.40 crores, for the quarter ended and for the period from April 1, 2024 to September 30, 2024, respectively, and cash flows (net) of Rs. 2,474.82 crores for the period from April 1, 2024 to September 30, 2024, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also include the Group's share of net profit after tax of Rs. 0.51 crore and Rs. 0.94 crore and total comprehensive income of Rs. 0.48 crore and Rs. 0.93 crore for the quarter ended and for the period from April 1, 2024 to September 30, 2024, respectively, in respect of one associate. There also exist the financial information of one subsidiary which have not been reviewed/ audited by their auditors, whose interim financial information reflect total assets of Rs. Nil and net assets of Rs. Nil as at September 30, 2024 and total revenue of Rs. * and Rs. *, total net (loss) after tax of Rs. (0.06) crores and Rs. (0.06) crores and total comprehensive (loss) of Rs. (0.06) crores and Rs. (0.06) crores for the quarter ended September 30, 2024 and for the period from April 1, 2024 to September 30, 2024, respectively, and cash flows (net) of Rs. Nil for the period from April 1, 2024 to September 30, 2024, as considered in the consolidated unaudited financial results. The consolidated unaudited financial results also include the Group's share of net profit after tax of Rs. 29.28 crores and Rs. 53.42 crores and total comprehensive income of Rs. 30.55 crores and Rs. 56.53 crores for the quarter ended September 30, 2024 and for the period from April 1, 2024 to September 30, 2024, respectively, as considered in the consolidated unaudited financial results, in respect of five associates based on their interim financial information, which have not been reviewed/ audited by their auditors. The Statement does not include Group's share of total comprehensive income/(loss) in respect of two associate companies in which investment of Rs. 21.62 crores made by the Group has been fully impaired.
Statement of Consolidated Unaudited Financial Results Highlights: Total Income for the half year ended September 30, 2024, reached Rs. 9,973.53 crores, compared to Rs. 7,379.99 crores for the corresponding period in the previous year. Profit before tax for the period was Rs. 7,194.73 crores (previous year: Rs. 5,152.36 crores). Profit for the period was Rs 5,322.90 (previous year: Rs 3,893.92). Earnings per equity share were Rs. 23.05 (previous year Rs. 15.52). Discontinued operations also contributed, with a profit of Rs. 381.10 crores.
Segment Information:
NSE operates primarily through three segments: Trading Services, Clearing Services, and Others. Trading Services contributed Rs 8,158.07 crores, Clearing Services contributed Rs 1,463.75, and Others Rs 267.79 crores during the half year ended September 30, 2024. Total Segment assets were Rs 41,480.73 crores. The Core SGF maintained by NSE Clearing Limited and NSE IFSC Clearing Corporation Limited (NSE IFSC CC) was 9,428.55 crores.
Cash Flow Statement Highlights:
Net cash inflow from operating activities amounted to Rs. 5,892.35 crores. Net cash outflow from financing activities totaled Rs. (4,382.15) crores. Resulting in an increase of cash and cash equivalents of Rs. 1,589.38 for the half year. Cash and cash equivalents at the end of the period was Rs 24,959.22.
Other Key Points/Notes:
The report concludes with the signatures of Amit Borkar, Partner, and the firm registration number for Price Waterhouse & Co Chartered Accountants LLP.
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