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Multi Commodity Exchange of India Ltd.

BSE: 534091 Sector: Financials
NSE: MCX ISIN Code: INE745G01035
BSE 09:43 | 22 Feb 675.40 2.55
(0.38%)
OPEN

670.00

HIGH

677.80

LOW

668.00

NSE 09:34 | 22 Feb 677.05 3.40
(0.50%)
OPEN

676.00

HIGH

678.80

LOW

673.50

OPEN 670.00
PREVIOUS CLOSE 672.85
VOLUME 581
52-Week high 917.00
52-Week low 643.50
P/E 25.78
Mkt Cap.(Rs cr) 3,445
Buy Price 674.80
Buy Qty 62.00
Sell Price 675.45
Sell Qty 49.00
OPEN 670.00
CLOSE 672.85
VOLUME 581
52-Week high 917.00
52-Week low 643.50
P/E 25.78
Mkt Cap.(Rs cr) 3,445
Buy Price 674.80
Buy Qty 62.00
Sell Price 675.45
Sell Qty 49.00

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

Company auditors report

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 the BalanceSheet as at 31st March 2018 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 (herein after referred to as "Standalone Ind AS financialstatements")

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveIncome cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under Section 133 of the Act read with Companies (Indian Accounting Standards)Rules 2015 as amended. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone Ind AS financial statements that give a true and fair viewand are free from material misstatement 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 there under and the Order issued under Section143(11) of the Act.

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 Ind AS and other accounting principles generally accepted in India including Ind ASof the state of affairs of the Company as at 31st March 2018 and its profittotal comprehensive income its cash flows and the changes in equity for the year ended onthat date.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act.

(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 unmodified opinion onadequacy and operative effectiveness of the Company's internal financial controls overfinancial 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. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 31 to standalone IndAS financial statements

ii. The Company did not have any long-term contracts including derivative contracts onwhich there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For SHAH GUPTA & CO.

Chartered Accountants Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai Date : April 28 2018

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(The Annexure referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' 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 programme of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets. In accordance with this programme certainfixed assets were verified during the year by the Management. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of anexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company as at the balance sheet date.

ii. Since the Company does not have inventory the Clause 3(ii) of the Order is notapplicable to the Company.

iii. According to the information and explanations given by the Management the Companyhas not granted any loans secured or unsecured to companies firms and other partiescovered in the register maintained under Section 189 of the Act. Accordingly sub clause(a) (b) & (c) are not applicable to the Company.

iv. According to information and explanations given to us the Company has compliedwith provisions of Section 185 and 186 of the Act in respect of grant of loans makinginvestments and providing guarantees and securities as applicable.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public within the meaning of directives issued by ReserveBank of India provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed there under. Accordingly clause 3(v) of the order is not applicableto the Company.

vi. To the best of our knowledge and as explained the Central Government has notprescribed maintenance of cost records under sub-section (1) of Section 148 of the Act.Accordingly clause 3(vi) of the order is not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding provident fund Income-Tax Sales Tax Value Added Tax Duty of Customs Duty ofExcise Service tax Cess Goods and Service Tax and other material statutory duesapplicable to it to the appropriate authorities.

(b) There were no undisputed amount payable in respect of provident fund Income-TaxSales Tax Value Added Tax Duty of Customs Duty of Excise Service tax Cess Goods andService Tax and other material statutory dues in arrears as at 31st March 2018for a period of more than six months from the date they became payable.

(c) According to the records of the Company there are no dues of provident fundIncome-Tax Sales Tax Value Added Tax Duty of Customs Duty of Excise Service taxCess Goods and Service Tax and other material statutory dues which have not beendeposited on account of any disputes other than as follows:

Name of the statute Nature of dues Amount (Rs in Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Tax 2245.09* AY 2013-2014 CIT (Appeals)
Uttar Pradesh Trade Tax Act 1948 Penalty 726.24# For the years 2005-2006 to 2007-2008 Deputy Commissioner of Commercial Tax
Finance Act 1994 Service Tax Interest@& Penalty 246.49$ For the period October 2006 to March 2015 Commissioner of Services Tax (Appeals)

* Net of Deposit of ' 306.36 Lakhs

# Net of Deposit of ' 288.73 Lakhs $ Net of Deposit of ' 11.69 Lakhs

@ excluding Interest amount as the same is not quantified

viii. According to the information and explanations given to us the Company does nothave any loans or borrowings from any financial institution banks government ordebenture holders during the year. Accordingly clause 3 (viii) of the order is notapplicable to the Company.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyclause 3 (ix) of the Order is not applicable to the Company.

x. According 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 given 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 and explanations given to us the Company is not aNidhi Company as prescribed under Section 406 of the Act. Accordingly clause 3 (xii) ofthe Order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Standalone Ind AS financial statements as requiredby the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them and hence provisions of section192 of the Act are not applicable. Accordingly clause 3(xv) of the Order is notapplicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For SHAH GUPTA & CO.

Chartered Accountants

Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai

Date : April 28 2018

ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls over Financial Reporting under clause (i) ofsub-section 3 of section 143 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 31st March2018 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for 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 audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

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 31st March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SHAH GUPTA & CO.

Chartered Accountants Firm Registration No.: 109574W

Vipul K. Choksi

Partner

Membership No.: 37606

Place : Mumbai Date : April 28 2018