THE VICTORY OF TRUTH
"First they ignore you then they ridicule you then they ghtyou and then you win." Thus spoke the Father of the Nation Mahatma Gandhiwho swore by the power of truth and fought non-violently all his life for the victory oftruth and justice. Your Company's belief and experience too has been no differentfrom this deeply moving ever-relevant reality. More than two decades ago Mr. JigneshShah a young innovator / entrepreneur founded your Company and with his innovative zealand entrepreneurial aggression turned it into one of the finest examples of Make inIndia creating 9 robust exchanges across the globe in a variety of asset classesincluding commodities currency equity energy and bonds in as many years. However yourCompany's rapid growth in the markets was looked upon as a threat by certainmonopolistic forces who envied us. These forces joined hands with certain vested intereststo form an unholy nexus that created an artificial payment default crisis at one of oursubsidiariesthe National Spot Exchange Limited (NSEL) in 2013. By now theperpetrators of this crisis stand exposed in the public domain and all of you know whothese forces are and how they with the revengeful motto
4 desired not just to halt our progress but to also force us out of theExchange businesses completely. Despite the entire money trail of the default amounthaving been traced to the 24 defaulting entities by the investigating agencies and not apaisa was found with NSEL FTIL and its founder Mr. Jignesh Shah the facts were ignoredwe were ridiculed and attacked with vengeance but finally we won!
Truth and justice won a hard-fought battle when in a historicjudgment the Hon'ble Supreme Court set aside the forced merger of your Company withNSEL. In doing so the apex court has taken away once and for all the proverbialDamocles' Sword of such arbitrarily forced mergers on India Inc. since no conglomeratewould dare do new business via a subsidiary for the fear of facing amalgamation in so-calledpublic interest' if the subsidiary were to face any trouble.
It is indeed a welcome move that while pronouncing the judgment in ourcase the Supreme Court laid down the precise definition and the elaborate criterion forwhat constitutes public interest' and it is worthwhile to mention that here.
The SC ruled:
"In the context of compulsory amalgamation of two or morecompanies the expression public interest' would mean the welfare of the publicor the interest of society as a whole as contrasted with the "sel sh" interestof a group of private individuals..."
All of you are aware that the vested interests of a group of privateindividuals comprising HNI traders have not only been misleading but also coercinginvestigative agencies the media and the government to take unfair and unwarrantedactions against your Company so that their attention is deffected from the right path ofrecovering the default amount from the defaulters to whom it has been traced.
Furthermore it merits mention here that the apex court deemed it mostappropriate to hold the interests of our shareholders that is you paramount in thepresent case.
In this context the SC ruled:
"Even otherwise this is a case where there is completenon-application of mind by the authority assessing compensation to the rights andinterests which the shareholders and creditors of FTIL have and which are referred to inSection 396(3) of the Act. This being the case it is clear that Section 396(3) has notbeen followed either in letter or in spirit."
Thus in the end the legitimate ght that your Company put through overthe last six years has been worth the effort. We have succeeded in protectingshareholders' value and the larger democratic interest of Corporate India.
As far as business technologies are concerned we have proved ourmettle time and again. The mainstay of your company continues to be its strong balancesheet impeccable infrastructure dynamic human capital and an even stronger resolve tocreate value for its shareholders. Your Company remains virtually a zero-debt companyunlike many others. It has created over 1 million jobs through its allied ecosystemventures directly and indirectly without using any tax incentive loan or favour from thegovernment. At the same time it has been paying taxes to the exchequer and distributingdividends among shareholders every year without a break.
As we look into the future 63 moons with technology embedded in itsDNA is poised to create sustainable new digital ecology for full-scale commercializationof tech-innovation for the dynamic India of tomorrow!
Chairman Independent Non-executive Director 63 moons technologieslimited