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Multi Commodity Exchange of India Ltd.

BSE: 534091 Sector: Financials
NSE: MCX ISIN Code: INE745G01035
BSE 00:00 | 22 May 733.80 -4.45
(-0.60%)
OPEN

745.00

HIGH

745.00

LOW

721.55

NSE 00:00 | 22 May 733.90 -5.40
(-0.73%)
OPEN

736.50

HIGH

743.90

LOW

720.95

OPEN 745.00
PREVIOUS CLOSE 738.25
VOLUME 32552
52-Week high 1181.90
52-Week low 665.00
P/E 35.19
Mkt Cap.(Rs cr) 3,742
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 745.00
CLOSE 738.25
VOLUME 32552
52-Week high 1181.90
52-Week low 665.00
P/E 35.19
Mkt Cap.(Rs cr) 3,742
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Multi Commodity Exchange of India Ltd. (MCX) - Auditors Report

Company auditors report

MULTI COMMODITY EXCHANGE OF INDIA LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of MULTICOMMODITY EXCHANGE OF INDIA LIMITED ("the Company") which comprise theBalance Sheet as at March 31 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Cash Flows and the Statement of Changes in Equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (herein after referred to as ‘the Act') withrespect to the preparation and presentation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive Income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of the stateof affairs of the Company as at March 31 2017 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Report on other legal and regulatory requirements

1. A s required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet Statement of Profit and Loss the Statement of Cash Flows andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account.

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting

Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

(f) With respect to the adequacy of the Internal Financial Controls over financialreporting of the Company and operative effectiveness of such controls refer to ourseparate report in "Annexure B"; Our report expresses an unmodifiedopinion on adequacy and operative effectiveness of the Company's internal financialcontrols over financial reporting.

(g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsstandalone Ind AS financial statements. ii. The Company did not have any long-termcontracts including derivative contracts on which there were any material foreseeablelosses. iii. There has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company. iv. As mentioned in note 41of the Standalone Ind AS financial statements the disclosure requirement in respect ofSpecified bank notes as envisaged in notification G.S.R 308 (E) dated March 30 2017 isnot applicable to the Company.

For SHAH GUPTA & CO.

Chartered Accountants

Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai

Date : May 04 2017

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report of even date)

i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b. The Company has a regular programof physical verification of its fixed assets by which fixed assets are verified in aphased manner over a period of three years. In our opinion this periodicity of physicalverification is reasonable having regard to the size of the Company and the nature of itsassets. In accordance with this programme certain fixed assets were verified during theyear by the Management. According to the information and explanations given to us nomaterial discrepancies were noticed on such verification. c. According to the informationand explanations given to us and on the basis of an examination of the records of theCompany the title deeds of immovable properties are held in the name of the Company asat the balance sheet date. ii. Since the Company does not have inventory the Clause 3(ii)of the Order is not applicable to the Company. iii. According to the information andexplanations given by the Management the Company has not granted any loans secured orunsecured to companies firms and other parties covered in the register maintained underSection 189 of the Act. Accordingly sub-clause (a) (b) & (c) are not applicable tothe Company. iv. According to information and explanations given to us the Company hascomplied with provisions of Section 185 and 186 of the Act in respect of grant of loansmaking investments and providing guarantees and securities as applicable. v. According tothe information and explanations given to us the Company has not accepted any depositfrom the public and hence the directives issued by the Reserve Bank of India and theprovisions of Sections 73 to 76 or any other relevant provisions of the Act and theCompanies (Acceptance of Deposit) Rules 2015 with regard to the deposits accepted fromthe public are not applicable. vi. To the best of our knowledge and as explained theCentral Government has not prescribed maintenance of cost records under sub-section (1) ofSection 148 of the Act. vii. (a) According to the information and explanations given to usand on the basis of our examination of the records of the Company amounts deducted /accrued in the books of account in respect of undisputed statutory dues includingProvident fund Income-Tax Sales Tax Value Added Tax Duty of Customs Duty of ExciseService tax Cess and other material statutory dues have been regularly deposited duringthe year by the Company with the appropriate authorities. As explained to us the Companydid not have any dues which were in arrears as at March 31 2017 for a period ofmore than six months from the date they became payable.

(b ) According to the records of the Company there are no dues of Sales Tax ValueAdded Tax Duty of Customs

Duty of Excise Service Tax and Cess which have not been deposited on account of anydispute.

However according to information and explanations given to us the following dues ofIncome Tax and U.P. Transaction Tax have not been deposited by the Company on account ofdisputes:

Name of the statute Nature of dues Amount ( ` in lakhs) Period to which the amount relates Forum where dispute is pending
Uttar Pradesh Trade Penalty 1014.97 For the years 2005-2006 Deputy Commissioner of Commercial
Tax Act 1948 to 2007–2008 Tax
Income Tax Act 1961 Tax 2167.77 AY 2013-2014 CIT (Appeals)

viii. A ccording to the information and explanations give to us the Company does nothave any loans or borrowings from any financial institution banks government ordebenture holders during the year. Accordingly clause 3(vii) of the order is notapplicable to the Company. ix. The Company did not raise any money by way of initialpublic offer or further public offer (including debt instruments) and term loans duringthe year. Accordingly clause 3 (ix) of the Order is not applicable to the Company.

x. A ccording to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employee has been noticed or reported duringthe year. xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act. xii. According to the information andexplanations given to us the Company is not a Nidhi Company. Accordingly clause

3 (xii) of the Order is not applicable to the Company. xiii. According to theinformation and explanations given to us and based on our examination of the records ofthe

Company transactions with the related parties are in compliance with Sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe Standalone Ind AS financial statements as required by the applicable accountingstandards. xiv. According to the information and explanations give to us and based on ourexamination of the records of the

Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Therefore clause 3(xiv)of the Order is not applicable to the Company. xv. According to the information andexplanations given to us and based on our examination of the records of the Company theCompany has not entered into non-cash transactions with directors or persons connectedwith them and hence provisions of Section 192 of the Act are not applicable. Accordinglyclause 3(xv) of the Order is not applicable to the Company. xvi. The Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For SHAH GUPTA & CO.

Chartered Accountants

Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai

Date : May 04 2017

ANNEXURE B HE INDEPENDENT AUDITORS' REPORTTO

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of MULTICOMMODITY EXCHANGE OF INDIA LIMITED ("the Company") as of March 31 2017 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (The "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors' judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper Management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best our information and according to the explanations given tous the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2017 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the Institute ofChartered Accountants of India.

For SHAH GUPTA & CO.

Chartered Accountants

Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai

Date : May 04 2017