Notes to Accounts of Multi Commodity Exchange of India Ltd.

Mar 31, 2025

S. Provisions, contingent liabilities, contingent assets
and commitments

A provision is recognised when the Company has a
present obligation as a result of past events and it is
probable that an outflow of resources will be required
to settle the obligation in respect of which a reliable
estimate can be made.

Provisions (excluding retirement benefits) are not
discounted to their present value and are determined
based on the best estimate required to settle the
obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the
current best estimates.

I f the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the

provision due to the passage of time is recognized as a
finance cost.

Contingent liability is disclosed in the case of:

• a present obligation arising from past events, when
it is not probable that an outflow of resources will be
required to settle the obligation;

• a present obligation arising from past events, when
no reliable estimate is possible;

• a possible obligation arising from past events, when
the probability of outflow of resources is remote.

Contingent liabilities are not disclosed in case the
possibility of an outflow of resources embodying
economic benefits is remote.

Commitments include the amount of purchase order
(net of advances) issued to parties for completion of
assets.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each Balance Sheet date.

T. Exceptional items

Certain occasions, the size, type or incidence of an
item of income or expense, pertaining to the ordinary
activities of the Company is such that its disclosure
improves the understanding of the performance of
the Company, such income or expense is classified
as an exceptional item and accordingly, disclosed in
the notes accompanying to the standalone financial
statements.

U. Earnings per share

Basic earnings per share are computed by dividing
the profit after tax by the weighted average number
of equity shares outstanding during the year. Diluted
earnings per share is computed by dividing the profit
after tax as adjusted for dividend, interest and other
charges to expense or income (net of any attributable
taxes) relating to the dilutive potential equity shares,
by the weighted average number of equity shares
considered for deriving basic earnings per share
and the weighted average number of equity shares
which could have been issued on the conversion of all
dilutive potential equity shares. Potential equity shares
are deemed to be dilutive only if their conversion to
equity shares would decrease the net profit per share
from continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued
at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares

been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential
equity shares are determined independently for each
period presented.

V. Dividend

The Company recognises a liability to pay dividend to
equity holders of the Company when the distribution
is authorised. As per the corporate laws in India, a
distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised
directly in equity.

W. Rounding of amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lakh as
per the requirement of Schedule III, unless otherwise
stated.

X. Events after reporting date

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size or
nature are only disclosed.

1.3 Key accounting estimates and Judgments

The preparation of the Company''s financial statements
requires the management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future
periods.

Estimates and underlying assumptions are reviewed on
a periodic basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised
and in any future periods affected.

Critical accounting estimates and assumptions:

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below:

Income taxes

The Company''s tax jurisdiction is India. Significant
judgements are involved in estimating budgeted profits

for the purpose of paying advance tax, determining the
provision for income taxes, including amount expected to
be paid/recovered for uncertain tax positions.

Property, plant and equipment

Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge
in respect of periodic depreciation / amortization is derived
after determining an estimate of an asset''s expected useful
lives and the expected residual value at the end of its life.
The useful lives and residual values of company''s assets are
determined by the management at the time the asset is
acquired and reviewed at each financial year end. The lives
are based on historical experience with similar assets as well
as anticipation of future events, which may impact their life,
such as changes in technical or commercial obsolescence
arising from changes or improvements in production or from
a change in market demand of the product or service output
of the asset.

Defined benefit plans

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases, mortality rates and attrition rate. Due to
the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed
at each reporting date.

Fair value measurement of financial instruments

When the fair values of financials assets and financial
liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is

measured using valuation techniques which involve various
judgements and assumptions.

Impairment of financial assets

The impairment provisions for financial assets are based on
assumptions about risk of default and expected loss rates.
The Company uses judgement in making these assumptions
and selecting the inputs to the impairment calculation, based
on Company''s past history, existing market conditions as well
as forward looking estimates at the end of each reporting
period.

Provisions

The timing of recognition and quantification of the liability
(including litigations) requires the application of judgement
to existing facts and circumstances, which can be subject to
change. The carrying amounts of provisions and liabilities are
reviewed regularly and revised to take account of changing
facts and circumstances.

1.4 Recent Accounting Pronouncements

Ministry of Corporate Affairs (''MCA'') notifies new standards or
amendments to the existing standards under the Companies
(Indian Accounting Standards) Rules, 2015 as amended from
time to time. For the year ended 31^st March, 2025, the MCA has
notified Ind AS 117, Insurance Contracts, and amendments to
Ind AS 116, Leases, relating to sale and leaseback transactions,
applicable to the Company, w.e.f., 1 April, 2024. The Company
has reviewed the new pronouncements and based on its
evaluation, has determined that the new pronouncement is
not applicable to the Company.

d. During the year ended 31^st March, 2009, the shareholders of the company approved the ''Employee Stock Options Plan 2008 (''ESOP
- 2008''). Under the said scheme, 1,625,000 equity shares of ? 10 each have been allotted to ESOP trust who will administer the
ESOP scheme on behalf of the company. Lapsed options available for reissuance are 95,551 (As at 31^st March, 2024: 95,551) shares.
During the year,there are no shares granted under Employee Stock Option Scheme.

e. There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments.

f. There are no bonus shares issued or bought back during the period of five years immediately preceding the reporting date.

g. Shares allotted as fully paid-up pursuant to contract without payment being received in cash during the year of five years
immediately preceding the date of the Balance Sheet as Nil.

Notes:

General reserve

The general reserve created from time to time transfer of profits from retained earnings for appropriation purposes. As the general
reserve created by a transfer from one component of equity to another and is not an item of other comprehensive income, items
included in general reserve will not be reclassified to the Statement of Profit and Loss.

Retained earnings

The same reflects surplus/deficit after taxes in the Statement of Profit and Loss. The amount that can be distributed by the Company
as dividends to its equity shareholders is determined based on the balance in this reserve and also considering the requirements
of the Companies Act, 2013.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purpose such as
issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Other comprehensive income

a. Equity instruments through other comprehensive income - This represents the cumulative gains and losses arising on the
revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option,
net of amounts reclassified to retained earnings when such assets are disposed off.

b. Re-measurements gain/(loss) on the defined employee benefit plan - This represents the cumulative gains and losses
arising on re-measurements on the defined employee benefit plan. ''

The Company is subject to tax assessments and ongoing proceedings, which are pending before various Tax Appellate Authorities.
Management periodically evaluates the positions taken in tax returns with respect to such matters, including unresolved tax
disputes, which involves interpretation of applicable tax regulations and judicial precedents. Current tax liability and tax asset
balances are presented, after recognising as appropriate, provision for taxes payable and contingencies basis management''s
assessment of outcome of such ongoing proceedings and amounts that may become payable to the tax authorities. Considering
the nature of such estimates and uncertainties involved, the amount of such provisions may change upon final resolution of the
matters with tax authorities.

In addition to the matters as specified in contingent liabilities above, the Company is subject to legal proceedings and claims,
which have arisen in the ordinary course of business, the impact of which is unascertainable. The Company''s management does
not expect that the legal actions, when ultimately concluded and determined, will have adverse effect on the Company''s financial
statements.

The Company received various correspondences on matters relating to operations of the Company, including inspections from
SEBI which have been replied to by the Company. Basis the replies filed; the Company''s management do not expect any material
impact on the financial statements of the Company.

32. SEGMENT REPORTING

IND AS 108 establishes standards for the way that Companies report information about operating segments and related disclosures
about products and services, and geographical areas. Based on the risks and returns identified, organizational structure and the
internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of
facilitating trading in commodities and incidental activities thereto" is considered as the only primary reportable business segment.
Further, since the Company renders services only in the domestic market in India and there is no geographical segment.

1. There are no amounts written off or written back during the year in respect of debts due from or to related parties.

2. KMPs as on the respective dates are considered and amount paid to ex-employee who were erstwhile KMP''s are not included
above.

3. 50% of variable pay is payable after 3 years subject to certain conditions.

37. EMPLOYEE BENEFIT PLANS

1.a. Post employment defined benefit plans :

The company makes annual contributions to the employee''s group gratuity assurance scheme administered by the Life Insurance
Corporation of India (''LIC''), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment
to vested employees on retirement, death while in employment or on termination of employment of an amount equivalent to
fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion
of five years of service.

Additional details :

Multi commodity exchange of india Limited Methodology adopted for valuation is projected unit credit method.

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be true on
different count. This only signifies the change in the liability if the difference between assumed and the actual is not following the
parameters of the sensitivity analysis.

Since investment is with insurance company, assets are considered to be secured.

Assumptions regarding future mortality experience are set in accordance with the Indian Assured Lives Mortality (2012-14) Urban.

Expected rate of return on plan assets is based on expectation of the average long term rate of return expected to prevail over
the estimated term of the obligation on the type of the investments assumed to be held by LIC, since the fund is managed by LIC.

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotions and
other relevant factors, such as supply and demand in the employment market.

The company expects to contribute ? 371 lakhs to the plan assets during financial year 2025-26.

Actuarial gains/losses are recognized in the period of occurrence under other comprehensive income (OCI). All above reported
figures of OCI are gross of taxation.

Maturity profile of projected benefit obligation:

38. FINANCIAL INSTRUMENTS

a. Financial instruments by category

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a

current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities and
other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account
for the expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.

1. Investment in equity instrument are not held for trading. The Company has chosen to measure these at FVTOCI irrevocably
as the management believes that presently fair value gains and/or losses relating to these investments in the Statement of
Profit and Loss may not be indicative of the performance of the Company.

2. The fair value of mutual funds is based on quoted price.

3. The fair value of unlisted equity shares is based on the valuation provided by the certified valuer on half yearly basis.

c. Financial risk management

i. Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s
financial risk management policy is set by the Company''s management.

ii. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange
rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market
risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables.

iii. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Since the Company has no borrowings, exposure to risk of change in market interest rate is nil.

iv. Foreign currency risk

The Company periodically transacts internationally and few of the transactions are conducted in different currencies. As the volume
of the transactions are few, the company has not entered in foreign exchange forward exchange contracts.

ix. Capital risk management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize
returns to our shareholders. The capital structure of the Company is based on management''s judgement of the appropriate balance
of key elements in order to meet its strategic and day-to-day needs.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.

x. Regulatory risk

The Company requires a number of regulatory approvals, licenses, registrations and permissions to operate our business For example,
the Company have licenses from SEBI in relation to, among others, introducing derivatives contracts on various commodities. The
Company''s operations are subject to continued review and the governing regulations changes. The Company''s regulatory team
constantly monitors the compliance with these rules and regulations. The Company''s regulatory team keeps a track regarding the
amendments in SEBI circulars/regulations pertaining to the functioning of the Company.

39. CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the companies Act 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

The CSR activities of the company are generally carried out through charitable organisations, where funds are allocated by the
Company. These organisations carry out the CSR activities as specified in the schedule VII of the companies Act, 2013 on behalf of
the Company.

40. CONTRIBUTION TO CORE SETTLEMENT GUARANTEE FUND (SGF):

In accordance with Securities and Exchange Board of India (SEBI) Circular dated 27^th August, 2014, the Exchange during the year
ended 31^st March, 2025, has contributed ? 4,809 lakhs (31^st March, 2024: ? 2,452 lakhs) to the Settlement Guarantee Fund (SGF)
maintained by MCXCCL.

41. Upon examination of the issues relating to the contracts executed with the software vendors, SEBI had issued a Show Cause Notice
(SCN) dated 16^th October, 2023, to the Company and its four Key Managerial Personnel''s. SEBI has, inter alia, alleged in the SCN
that the Management did not implement the SEBI outsourcing circular dated 13^th September, 2017. The Company along with its
KMP''s have filed their individual response in the matter. Separately, the Exchange has also filed settlement application under the
applicable SEBI Regulations, which is pending for disposal. Hearings in respect of SCN is pending.

42. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year 2024-25, to
the extent the company has received intimation from the "Suppliers" regarding their status under the Act.

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the management. This has been relied upon by the auditors.

43. A. DISCLOSURE AS PER REGULATION 53(F) OF SEBI (LISTING OBLIGATION AND DISCLOSURE
REQUIREMENTS) REGULATIONS:

Loans and advances in the nature of loans given to subsidiaries, associates and others and investments in shares of the
Company by such parties:

i. Details of investments made are given in note 4 & 8.

ii. There are no loans or guarantees issued in accordance with section 186 of the Companies Act, 2013 read with rules
issued thereunder.

B. DISCLOSURE AS PER SECTION 186 OF THE COMPANIES ACT, 2013

The details of loans, guarantees and investments under section 186 of the Companies Act, 2013 read with the Companies
(Meeting of Board and its Powers) Rules, 2014 are as follows:

i. Details of investments made are given in note 4 & 8.

ii. There are no loans or guarantees issued in accordance with section 186 of the Companies Act, 2013 read with rules
issued thereunder.

c. Other information:

(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(iii) The Company does not have number of layers of companies.

(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial
year.

(v) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries.

Further, the Company has not received any funds from any person or entity, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(viii) All the title deeds of immovable properties are held in the name of Company.

(ix) There are no promoters for the Company.

(x) The Company has not revalued its property plant and equipment or intangible assets or both during current year or previous year.

(xi) The Company does not have any borrowings from bank and / or financial institutions.

(xii) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xiii) There are no Core Investment Companies (CIC) in the group.

(xiv) The Company has not granted any loans or advances to Directors'', KMPs and related parties either severally or jointly with any other
persons that are:

a) repayable on demand or

b) without specifying any terms or period for repayment.

46. Correction of prior period errors in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

During the year ended 31^st March, 2025, the Company reassessed the classification of its equity investment in its wholly-owned
subsidiary, Multi Commodity Exchange Clearing Corporation Limited (MCXCCL). At the time of initial adoption of Ind AS, this
investment was classified as Fair Value Through Other Comprehensive Income (FVTOCI), based on the then prevailing facts and
circumstances, as MCXCCL was not operational and had limited strategic or economic activity.

Subsequently, MCXCCL commenced full-scale operations, undertaking critical clearing and settlement functions, and has
demonstrated sustained profitability. This operational activation and strategic realignment led the management to conclude that
the original classification no longer reflects the Company''s business model or intention with respect to the investment.

This resulted in an overstatement of other comprehensive income and total comprehensive income by ? 318 lakhs for the year
ended 31^st March, 2024. Accordingly, in line with Ind AS 109 - Financial Instruments, and based on a revised assessment of the
business model, the Company has classified the investment in the subsidiary at cost.

Reason for change in the policy:

• prudent accounting and enhanced alignment with the Company''s long-term strategic intent of holding the investment in the
subsidiary for operational synergies rather than trading purposes.

• providing a more stable and reliable presentation of 100% subsidiary investment''s value in the Company''s standalone
financial statements.

47. The Company had entered into an agreement with Tata Consultancy Services Ltd. (TCS), according to which the new Commodity
Derivative Platform (CDP) was to be developed, tested and delivered by TCS by 30^th September, 2022.

However, since the new platform was under development, the Company considering the exigency to ensure continuity of the
commodity trading and clearing platform, continued with the services of the vendor, 63 Moons Technologies Ltd., initially for a
period for quarter ended 2022 December for ? 6,000 lakhs (plus applicable taxes). Accordingly, for the quarter ended 31^st December,
2022, Company had incurred ? 4,020 lakhs (net of recoveries from MCXCCL, excluding applicable taxes). Later, these services were
extended for another two quarters ending 30^th June, 2023 for ? 8,100 lakhs per quarter (plus applicable taxes) as per the minimum
period of services offered by the vendor. Accordingly, for the quarter ended 31^st March, 2023 and 30^th June, 2023, Company has
incurred ? 5,427 lakhs (net of recoveries from MCXCCL, excluding applicable taxes) each.

Further, due to delay in the delivery of the CDP platform, the Company had decided to extend the support services being rendered
by the vendor, 63 Moons Technologies Ltd. for further two quarters, being the minimum period of services offered by the vendor,
beginning from 01^st July, 2023 at a consideration of ? 12,500 lakhs (plus applicable taxes) per quarter. Accordingly, for the quarter
ended 30^th September, 2023, Company has incurred ? 8,375 lakhs (net of recoveries from MCXCCL excluding applicable taxes) and
for the quarter ended 31^st December, 2023 has incurred ? 11,827 lakhs (net of recoveries from MCXCCL, excluding applicable taxes
only till 15^th October, 2023 on "pay for use basis" as per the existing resources sharing agreement).

TCS has completed development of CDP and the Company has gone live with CDP with effect from 16^th October, 2023 after requisite
approvals.

49. The Code on Social Security, 2020 (Code) relating to employee benefits during employment and post- employment, received
Presidential assent in 2020 September. The Company will assess the impact and its evaluation once the subject rules are notified.
The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the
related rules to determine the financial impact are published.

50. MCX has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters'' assets
not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor
Protection Fund is administered by way of a registered Trust created for the purpose. In order to enhance the effectiveness of
Investor Protection Fund (IPF) of Stock Exchange, SEBI comprehensively reviewed the existing framework. The Company recognizes
a provision for contribution payable to IPF, which is estimated by assessing maximum amount which can be paid to the individual
claimant as per the extent regulations. As on 31^st March, 2025, the corpus with the IPF was ? 28,373 lakhs (Unaudited) (31^st March,
2024: ? 22,776 lakhs). During the year, the Company had made a contribution of ? 962 lakhs (31^st March, 2024: ? 560 lakhs)
recognized as an expense. Further, the Company has received penalty ? 195 lakhs (31^st March, 2024: ? 259 lakhs) and the same is
transferred to IPF.

51. In accordance with the relevant provisions of the Companies Act, 2013, the Company has long term contracts as of 31^st March, 2025,
and 31^st March, 2024, for which there were no material foreseeable losses. The Company did not have any derivative contracts as
at 31^st March, 2025, and 31^st March, 2024.

52. For the year ended 31^st March, 2025, and 31^st March, 2024, the Company is not required to transfer any amount to the Investor
Education & Protection Fund as required under section 125 of the Companies Act, 2013.

53. The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendment Rules, 2021) which is effective
from 01^st April, 2023, states that every company which uses accounting software for maintaining its books of account shall use
only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating
an edit log of each change made to books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company uses SAP as a primary accounting software for maintaining books of account, which has a feature of recording audit
trail edit logs facility.

The audit trail features was enabled and operative throughout the financial year for the transactions recorded in the software
impacting books of account at application level.

54. The Financial Statements were approved by the Audit Committee and Board of Directors on 08^th May, 2025.

For and on behalf of the Board of Directors

Praveena Rai Dr. Harsh Kumar Bhanwala Ashutosh Vaidya

Managing Director & CEO Chairman Director

DIN:09474203 DIN:06417704 DIN:06751825

Place: Mumbai Manisha Thakur Chandresh Shah

Date: 08 May, 2025 Company Secretary Chief Financial Officer

Membership No. A10855
Place: Mumbai
Date: 08 May, 2025

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Mar 31, 2024

Capital work-in-progress: Projects with timeline delayed (as on March 31, 2024)

As on March 31, 2024, there were no capital work-in-progress, where the actual cost of an asset/project has already exceeded the estimated cost as per original plan or actual timelines for completion of an asset/project have exceeded the estimated timelines as per original plan. Accordingly, no additional disclosure was required.

3.2 Significant estimate: Useful life of intangible assets. As at 31 March 2024, the net carrying amount of the software & & license fees was f 18,797 lakh (as on March 31,2023: f 1,357 lakh). The Company estimates the useful life of the software based on the expected technical obsolescence of such assets. However, the actual useful life may deviate, depending on future technical innovations and competitor action.

Intangible assets under development: Projects with timeline delayed (as on March 31, 2024)

As on March 31,2024, there were no intangible assets under development, whose completion is overdue or has exceeded its cost compared to its original plan. Accordingly, no additional disclosure was required.

6.1: The Company is subject to tax assessments and ongoing proceedings, which are pending before various Tax Appellate Authorities. Management periodically evaluates the positions taken in tax returns with respect to such matters, including unresolved tax disputes, which involves interpretation of applicable tax regulations and judicial precedents. Current tax liability and tax asset balances are presented, after recognising as appropriate, provision for taxes payable and contingencies basis management’s assessment of outcome of such ongoing proceedings and amounts that may become payable to the tax authorities. Considering the nature of such estimates and uncertainties involved, the amount of such provisions may change upon final resolution of the matters with tax authorities. Refer also note 31 for details of contingent liabilities and litigations.

9.1 Trade receivables are dues in respect of services rendered in the normal course of business.

9.2 The normal credit period allowed by the company ranges from 0 to 30 days.

9.3 There are no dues from directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively, in which any director is a partner or a director or a member.

9.4 Credit risk management regarding trade receivables has been described in note 39.c.vii.

9.5 Trade receivables have a short credit period and does not have any significant financing component.

b. Rights, preferences and restrictions attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of f 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend recommended by the Board of Directors is subject to the approval of the shareholders at the ensuing annual general meeting, except in the case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the proportion of equity shares held.

d. During the year ended March 31, 2009, the shareholders of the company approved the ‘Employee Stock Options Plan 2008 (‘ESOP - 2008’). Under the said scheme, 1,625,000 equity shares of f 10 each have been allotted to ESOP trust who will administer the ESOP scheme on behalf of the company. Lapsed options available for reissuance are 95,551 (As at March 31, 2023: 95,551) shares. During the year,there are no shares granted under Employee Stock Option Scheme.

e. There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestments.

f. There are no bonus shares issued or bought back during the period of five years immediately preceding the reporting date.

g. Shares allotted as fully paid-up pursuant to contract without payment being received in cash during the year of five years immediately preceding the date of the Balance Sheet as under: Nil

Notes:

General reserve

The general reserve created from time to time transfer profits from retained earnings for appropriation purposes. As the general reserve created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not be reclassified to the Statement of Profit and Loss.

Retained earnings

The same reflects surplus/deficit after taxes in the Statement of Profit and Loss. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the balance in this reserve and also considering the requirements of the Companies Act, 2013.

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purpose such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Other comprehensive income

a. Equity instruments through other comprehensive income - This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

b. Re-measurements gain/(loss) on the defined employee benefit plan - This represents the cumulative gains and losses arising on re-measurements on the defined employee benefit plan.

31. Contingent liabilities and commitments (to the extent not provided for)		f in Lakh
Particulars	As at March 31, 2024	As at March 31, 2023
Contingent liabilities :
Claims against the company not acknowledged as debts :
- Income tax demands against which the company is in appeals (including interest upto date of order) (net of rectification orders)	13,786	12,705
- Others (excluding interest)	13	18
Capital commitments:
The estimated amount of capital contracts remaining to be executed and not provided for (net of advances)	6,506	10,453

The Company is subject to tax assessments and ongoing proceedings, which are pending before various Tax Appellate Authorities. Management periodically evaluates the positions taken in tax returns with respect to such matters, including unresolved tax disputes, which involves interpretation of applicable tax regulations and judicial precedents. Current tax liability and tax asset balances are presented, after recognising as appropriate, provision for taxes payable and contingencies basis management’s assessment of outcome of such ongoing proceedings and amounts that may become payable to the tax authorities. Considering the nature of such estimates and uncertainties involved, the amount of such provisions may change upon final resolution of the matters with tax authorities.

In addition to the matters as specified in contingent liabilities above, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business, the impact of which is unascertainable. The Company’s management does not expect that the legal actions, when ultimately concluded and determined, will have adverse effect on the Company’s financial statements.

The Company received various correspondences on matters relating to operations of the Company, including inspections from SEBI which have been replied to by the Company. Basis the replies filed; the Company’s management do not expect any material impact on the financial statements of the Company.

IND AS 108 establishes standards for the way that Companies report information about operating segments and related disclosures about products and services, and geographical areas. Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly “business of facilitating trading in commodities and incidental activities thereto” is considered as the only primary reportable business segment. Further, since the Company renders services only in the domestic market in India and there is no geographical segment.

The company''s leasing arrangements are in respect of operating leases for office premises. The rent period range between 2 years to 9 years and usually renewable on mutually agreed terms.

e. Extension and termination options

Extension and termination options are included in many of the leases. In determining the lease term, the Management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. This assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the Company.

38. Employee benefit plans:

1 .a. Post employment defined benefit plans :

The company makes annual contributions to the employee’s group gratuity assurance scheme administered by the Life Insurance Corporation of India (‘LIC’), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees on retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of service.

Additional details :

Methodology adopted for valuation is projected unit credit method.

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be true on different count. This only signifies the change in the liability if the difference between assumed and the actual is not following the parameters of the sensitivity analysis.

Since investment is with insurance company, assets are considered to be secured.

Assumptions regarding future mortality experience are set in accordance with the Indian Assured Lives Mortality (2012-14) Urban.

Expected rate of return on plan assets is based on expectation of the average long term rate of return expected to prevail over the estimated term of the obligation on the type of the investments assumed to be held by LIC, since the fund is managed by LIC.

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotions and other relevant factors, such as supply and demand in the employment market.

The company expects to contribute f 88 lakh to the plan assets during financial year 2024-25.

Actuarial gains/losses are recognized in the period of occurrence under other comprehensive income (OCI). All above reported figures of OCI are gross of taxation.

2. Other long term employee benefits :

Privilege leave and sick leave assumptions

The liability towards compensated absences (privilege leave and sick leave) for the year ended March 31, 2024 is based on acturial valuation carrried out by using projected accrual benefit method which resulted in increase in liability by f 25 lakh. (previous year - decrease by f 12 lakh).

39. Financial instruments a. Financial instruments by category

The fair values of the financial assets and liabilities are included at the amount at which the instrument could

be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities and other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

c. Financial risk management

i. Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Company''s management.

ii. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables.

iii. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has no borrowings, exposure to risk of change in market interest rate is nil.

iv. Foreign currency risk

The Company periodically transacts internationally and few of the transactions are conducted in different currencies. As the volume of the transactions are few, the company has not entered in foreign exchange forward exchange contracts.

vii. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. To manage this, the company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to f 5,865 lakh and f 1,207 lakh as at March 31,2024 and March 31,2023 respectively, unbilled revenue amounting to f 289 lakh and f 4,294 lakh as at March 31,2024 and March 31, 2023 respectively, non-current investments amounting to f 85,056 lakh and f 1,08,781 lakh as at March 31, 2024 and March 31,2023 respectively, current investments amounting to f 28,635 lakh and f 12,835 lakh as at March 31, 2024 and March 31, 2023 respectively, other non-current financial assets amounting to f 4,472 lakh and f 2,453 lakh as at March 31,2024 and March 31,2023 respectively, cash and cash equivalents amounting to f 16 lakh and f 41 lakh as at March 31, 2024 and March 31, 2023 respectively and Bank balances other than cash and cash equivalents amounting to f 1,680 lakh and f 1,324 lakh as at March 31, 2024 and March 31, 2023 respectively.

Where receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the Statement of Profit and Loss.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Investment in mutual fund, target maturity funds, ETF, state development loans and bonds is with financial institutions with credit rating assigned by credit rating agencies.

ix. Capital risk management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

x. Regulatory risk

The Company requires a number of regulatory approvals, licenses, registrations and permissions to operate our business For example, the Company have licenses from SEBI in relation to, among others, introducing derivatives contracts on various commodities. The Company’s operations are subject to continued review and the governing regulations changes. The Company’s regulatory team constantly monitors the compliance with these rules and regulations. The Company’s regulatory team keeps a track regarding the amendments in SEBI circulars/regulations pertaining to the functioning of the Company.

40. Corporate social responsibility

As per Section 135 of the companies Act 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

The CSR activities of the company are generally carried out through charitable organisations, where funds are allocated by the Company. These organisations carry out the CSR activities as specified in the schedule VII of the companies Act, 2013 on behalf of the Company. , ,,

41. Contribution to Core Settlement Guarantee Fund (SGF):

In accordance with Securities and Exchange Board of India (SEBI) Circular dated August 27, 2014, the Exchange during the year ended March 31, 2024, has contributed f 2,452 lakh to the Settlement Guarantee Fund (SGF) maintained by MCXCCL.

42. Upon examination of the issues relating to the contracts executed with the software vendors, SEBI had issued a Show Cause Notice (SCN) dated October 16, 2023, to the Company and its four Key Managerial Personnel’s. SEBI has, inter alia, alleged in the SCN that the Management did not implement the SEBI outsourcing circular dated 13^th September 2017. The Company along with its KMP’s have filed their individual response in the matter. Separately, the Exchange has also filed settlement application under the applicable SEBI Regulations, which is pending for disposal. Hearings in respect of SCN is pending.

43. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year 2023-24, to the extent the company has received intimation from the "Suppliers" regarding their status under the Act.

44. A. Disclosure as per Regulation 53(f) of SEBI (Listing Obligation and Disclosure Requirements) Regulations:

Loans and advances in the nature of loans given to subsidiaries, associates and others and investments in shares of the Company by such parties:

i. Details of investments made are given in note 4 & 8.

ii. There are no loans or guarantees issued in accordance with section 186 of the Companies Act, 2013 read with rules issued thereunder.

B. Disclosure as per Section 186 of the Companies Act, 2013

The details of loans, guarantees and investments under section 186 of the Companies Act, 2013 read with the Companies (Meeting of Board and its Powers) Rules, 2014 are as follows:

i. Details of investments made are given in note 4 & 8.

ii. There are no loans or guarantees issued in accordance with section 186 of the Companies Act, 2013 read with rules issued thereunder.

c. Other information:

(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) The Company does not have number of layers of Companies.

(iv) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(v) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(viii) All the title deeds of immovable properties are held in the name of Company.

(ix) There are no promoters for the Company.

(x) The Company has not revalued its property plant and equipment or intangible assets or both during current year or previous year.

(xi) The Company does not have any borrowings from bank and / or financial institutions.

(xii) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xiii) There are no Core Investment Companies (CIC) in the group.

(xiv) The Company has not granted any loans or advances to Directors'', KMPs and related parties either severally or jointly with any other persons that are:

a) repayable on demand or

b) without specifying any terms or period for repayment.

47. The Company had entered into an agreement with Tata Consultancy Services Ltd. (TCS), according to which the new Commodity Derivative Platform (CDP) was to be developed, tested and delivered by TCS by September 30, 2022.

However, since the new platform was under development, the Company considering the exigency to ensure continuity of the commodity trading and clearing platform, continued with the services of the vendor, 63 Moons Technologies Ltd., initially for a period for quarter ended December 2022 for f 6,000 lakh (plus applicable taxes). Accordingly, for the quarter ended December 31, 2022, Company had incurred f 4,020 lakh (net of recoveries from MCXCCL, excluding applicable taxes). Later, these services were extended for another two quarters ending June 30, 2023 for f 8,100 lakh per quarter (plus applicable taxes) as per the minimum period of services offered by the vendor. Accordingly, for the quarter ended March 31, 2023 and June 30, 2023, Company has incurred f 5,427 lakh (net of recoveries from MCXCCL, excluding applicable taxes) each.

Further, due to delay in the delivery of the CDP platform, the Company had decided to extend the support services being rendered by the vendor, 63 Moons Technologies Ltd. for further two quarters, being the minimum period of services offered by the vendor, beginning from July 01, 2023 at a consideration of f 12,500 lakh (plus applicable taxes) per quarter. Accordingly, for the quarter ended September 30, 2023, Company has incurred f 8,375 lakh (net of recoveries from MCXCCL excluding applicable taxes) and for the quarter ended December 31, 2023 has incurred f 11,827 lakh (net of recoveries from MCXCCL, excluding applicable taxes only till October 15, 2023 on “pay for use basis” as per the existing resources sharing agreement).

TCS has completed development of CDP and the Company has gone live with CDP with effect from October 16, 2023 after requisite approvals.

48. The Code on Social Security, 2020 (Code) relating to employee benefits during employment and postemployment, received Presidential assent in September 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

49. MCX has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters’ assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of a registered Trust created for the purpose. In order to enhance the effectiveness of Investor Protection Fund (IPF) of Stock Exchange, SEBI comprehensively reviewed the existing framework. The Company recognizes a provision for contribution payable to IPF, which is estimated by assessing maximum amount which can be paid to the individual claimant as per the extent regulations. As on March 31, 2024, the corpus with the IPF was f 22,776 lakh (Unaudited) (March 31, 2023: f 21,962 Lakh). During the previous year, the Company had made a contribution of f 560 lakh (March 31,2023: f 426 lakh) recognized as an expense.

50. In accordance with the relevant provisions of the Companies Act, 2013, the Company has long term contracts as of March 31,2024, and March 31,2023, for which there were no material foreseeable losses. The Company did not have any derivative contracts as at March 31, 2024, and March 31, 2023.

51. For the year ended March 31,2024, and March 31, 2023, the Company is not required to transfer any amount to the Investor Education & Protection Fund as required under section 125 of the Companies Act, 2013.

52. The Ministry of Corporate Affairs (MCA) has issued a notification (Companies (Accounts) Amendment Rules, 2021) which is effective from April 01,2023, states that every company which uses accounting software for maintaining its books of account shall use only the accounting software where there is a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made to books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses SAP as a primary accounting software for maintaining books of account, which has a feature of recording audit trail edit logs facility.

The audit trail features was enabled and operative throughout the financial year for the transactions recorded in the software impacting books of account at application level.

53. Previous year figures have been regrouped/reclassified wherever necessary to conform to current year figures.

54. The Financial Statements were approved by the Audit Committee and Board of Directors on April 23, 2024.

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Mar 31, 2023

Provisions, contingent liabilities, contingent assets and commitments

A provision is recognised when the Company has a present obligation as a result of past events and it is probable
that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made.

Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on
the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance
Sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation;

- a present obligation arising from past events, when no reliable estimate is possible;

- a possible obligation arising from past events, when the probability of outflow of resources is remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each Balance Sheet date.
Onerous contracts

A provision for onerous contracts is measured at the present value of the lower of expected costs of terminating the
contract and the expected cost of continuing with the contract. Before a provision is established, the Company
recognizes impairment on the assets with the contract.

Q. Exceptional items

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities
of the Company is such that its disclosure improves the understanding of the performance of the Company, such
income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the
standalone financial statements.

R. Earnings per share

Basic earnings per share are computed by dividing the profit after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share is computed by dividing the profit after tax as
adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued
at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented.

S. Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with the
conditions attaching to it, and that the grant will be received. Government grants are recognised in the Statement
of Profit and Loss on a systematic basis over the periods in which the Company recognises as expenses the related
costs for which the grants are intended to compensate. Government grants relating to tangible fixed assets are
treated as deferred income and released to the Statement of Profit and loss over the expected useful lives of the
assets concerned.

T. Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is
authorised. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders.
A corresponding amount is recognised directly in equity.

U. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as per the
requirement of Schedule III, unless otherwise stated.

V. Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the
Balance Sheet date of material size or nature are only disclosed.

1.3 Key accounting estimates and Judgments

The preparation of the Company''s financial statements requires the management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.

Critical accounting estimates and assumptions:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below:

Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the
purpose of paying advance tax, determining the provision for income taxes, including amount expected to be
paid/recovered for uncertain tax positions.

Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation / amortization is derived after determining an estimate of an asset''s expected
useful lives and the expected residual value at the end of its life. The useful lives and residual values of company''s
assets are determined by the management at the time the asset is acquired and reviewed at each financial year end.
The lives are based on historical experience with similar assets as well as anticipation of future events, which may
impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements
in production or from a change in market demand of the product or service output of the asset.

Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary
increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are
reviewed at each reporting date.

Fair value measurement of financial instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques which involve
various judgements and assumptions.

Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the
end of each reporting period.

Provisions

The timing of recognition and quantification of the liability (including litigations) requires the application of
judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions
and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

1.4 Recent accounting pronouncements which are not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31,2023, MCA amended the
Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

(i) Ind AS 1 - Disclosure of material accounting policies:

The amendments related to shifting of disclosure of erstwhile "significant accounting policies" to "material
accounting policies" in the notes to the financial statements requiring Companies to reframe their accounting
policies to make them more "entity specific. This amendment aligns with the "material" concept already required
under International Financial Reporting Standards (IFRS). The Company does not expect this amendment to have
any significant impact in standalone financial statements.

(ii) Ind AS 8 - Definition of accounting estimates:

The amendments will help entities to distinguish between accounting policies and accounting estimates. The
definition of a "change in accounting estimates" has been replaced with a definition of "accounting estimates."
Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to
measurement uncertainty." Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty. The Company does not expect this
amendment to have any significant impact in standalone financial statements.

(iii) Ind AS 12 - Income Taxes

The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12. At the
date of transition to Ind ASs, a first-time adopter shall recognize a deferred tax asset to the extent that it is probable
that taxable profit will be available against which the deductible temporary difference can be utilized. Similarly, a
deferred tax liability for all deductible and taxable temporary differences associated with:

a) right-of-use assets and lease liabilities

b) decommissioning, restoration and similar liabilities and the corresponding amounts recognized as part of the
cost of the related asset.

Therefore, if a Company has not yet recognised deferred tax on right-of-use assets and lease liabilities or has
recognised deferred tax on net basis, the same need to recognize on gross basis based on the carrying amount of
right-of-use assets and lease liabilities.

(iv) Ind AS 103 - Common control Business Combination

The amendments modify the disclosure requirement for business combination under common control in the first
financial statement following the business combination. It requires to disclose the date on which the transferee
obtains control of the transferor is required to be disclosed.

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Mar 31, 2022

Contingent liabilities and commitments (to the extent not provided for)		'' In Lakh
Particulars	As at	As at
	March 31, 2022	March 31, 2021
Contingent liabilities : Claims against the company not acknowledged as debts: - Income tax demands against which the company is in appeals (including	12,705	14,952
interest upto date of order) (net of rectification orders) - Others (excluding interest)	62	74
Capital commitments: The estimated amount of capital contracts remaining to be executed and not	12,322	4,385
provided for (net of advances)

In addition to the matters as specified in contingent liabilities above, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business the impact of which is unascertainable. The Company''s management does not expect that the legal actions, when ultimately concluded and determined, will have adverse effect on the company''s financial statements.

Other commitments:

The Company has commitments to pay for the services related to (i) maintenance of core network equipment and (ii) technology support and managed services based on long-term agreements, the cancellation of which may entail monetary compensation.

Segment reporting

IND AS 108 establishes standards for the way that companies report information about operating segments and related disclosures about products and services, and geographical areas. Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only primary reportable business segment. Further, since the company renders services only in the domestic market in India and there is no geographical segment.

Employee benefit plans:

1.a. Post employment defined benefit plans :

The company makes annual contributions to the employee''s group gratuity assurance scheme administered by the Life Insurance Corporation of India (''LIC''), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of service.

Employee stock option plan (ESOP):

During the year ended March 31, 2009, the shareholders of the company approved the ''Employee Stock Options Plan 2008 (''ESOP - 2008''). Under the said scheme, 1,625,000 equity shares of '' 10 each have been allotted to ESOP trust who will administer the ESOP scheme on behalf of the company. Out of which ESOP trust has granted (a) 1,313,250 number of options convertible into 1,313,250 equity shares of '' 10 each to eligible employees on July 02, 2008 and August 23, 2008 in aggregate; (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of '' 10 each to eligible employees on October 24, 2011; (c) 10,000 numbers of options convertible into 10,000 equity shares of '' 10 each to an eligible employee on October 03, 2012;(d) 25,300 numbers of options convertible into 25,300 equity shares of '' 10 each to eligible employees on April 19, 2013 ; (e) 10,000 numbers of options convertible into 10,000 equity shares of '' 10 each to an eligible employee on February 19, 2014 and (f) 172,600 numbers of options convertible into 172,600 equity shares of '' 10 each to eligible employees on November 11,2014.

Financial instruments

a. Financial instruments by category

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

(c) Financial risk management

1. Financial risk factors

The company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The company''s financial risk management is an integral part of how to plan and execute its business strategies. The company''s financial risk management policy is set by the company''s management.

2. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables.

3. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Since the company has no borrowings, exposure to risk of change in market interest rate is nil.

4. Foreign currency risk

The company periodically transacts internationally and few of the transactions are conducted in different currencies. As the volume of the transactions are few, the company has not entered in foreign exchange forward exchange contracts.

6. Derivative financial instruments

The company has not entered into any forward exchange contract being derivative instruments.

7. Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. To manage this, the company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to '' 1,383 lakh and '' 1,186 lakh as at March 31, 2022 and March 31,2021 respectively and unbilled revenue amounting to '' 4,079 lakh and '' 2,566 lakh as at March 31,2022 and March 31,2021 respectively.

Where receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Liquidity risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Capital risk management (a) Risk management

The company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The capital structure of the company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

11. Regulatory risk

The company requires a number of regulatory approvals, licenses, registrations and permissions to operate our business For example, the company have licenses from SEBI in relation to, among others, introducing derivatives contracts on various commodities The company''s operations are subject to continued review and the governing regulations changes. The company''s regulatory team constantly monitors the compliance with these rules and regulations. The company''s regulatory team keeps a track regarding the amendments in SEBI circulars/regulations pertaining to the functioning of the company.

I. Corporate social responsibility

"As per Section 135 of the companies Act 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

The CSR activities of the company are generally carried out through charitable organisations, where funds are allocated by the Company. These organisations carry out the CSR activities as specified in the schedule VII of the companies Act, 2013 on behalf of the company.

In accordance with the guidance note issued by the Institute of Chartered Accountants of India on "Accounting for credit available in respect of MAT under the Income Tax Act, 1961", the company can recognize MAT credit as an asset only when and to the extent there is convincing evidence that the company will be liable to pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recongnised as an asset, the said assets is created by way of a credit to the statement of profit and loss. The company reviews the same at each balance sheet date and write down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income-tax during the specified period. Accordingly, the Company had recognized MAT credit entitlement of '' 2,065 Lakh in Financial year 18-19 and in current year FY 2021-22''990 lakh has been utilised and short MAT credit utilisation relating to previous year of '' 436 lakh has been recognized.

During the past years, Hon''ble Supreme Court has stayed assessment proceedings on the request of the company for AY 2010-11, AY 2011-12 and AY 2014-15 and the Hon''ble High Court Mumbai had earlier admitted the matter for AY 2012-13 and AY 2013-14. Further during the previous year, on the basis of special audit report, assessing officer has passed assessment order u/s 143 (3) r.w.s. 142 (2A) and 144C (3) of the Income Tax Act, 1961 for AY 2015-16 determining demand of '' 644 lakh ( including interest of '' 242 lakh). Company is contesting the above demands in addition to demands raised in previous years for AY 2010-11 '' 5,160 lakh (including interest '' 2,731 lakh), for AY 2014-15''3,331 lakh including interest '' 1,314 lakh) and for AY 2013-14''2,774 lakh (including interest '' 868 lakh). In the opionion the legal counsel the company has strong case on merit, accordingly management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the company''s financial position and results of operation. Accordingly no provision has been made as on March 31,2022 and the above amounts are shown under contingent liabilities.

The Company had entered into an agreement in August 2018 with a software vendor to develop a trading system for the spot market. As per the milestones, payments were made to the said software vendor from time to time. The Company has incurred amount of '' 2,043 lakh on the said project and was shown as intangible asset under development. On account of non- fulfilment of the scope of the Project within the timelines and disputes arising between the parties, the Board has constituted an empowered Committee to evaluate the financial and technical aspects of the said System developed by the said vendors. The dispute was referred to Singapore International Arbitration Centre ("SIAC"). The Company and the software vendor, have reached an amicable out of court resolution which was confirmed by SIAC. Accordingly, the Company has settled the dues and obtained the delivered codes and specification documents of the platform. Based on the Standing Committee on Technology recommendation, a Technical Committee there after evaluated the Codes afresh and concluded in its technical report that the Codes cannot be used directly for any specific use case of the Exchange. Accordingly the Management has discontinued further development of this intangible asset under development and consequently the entire expenditure of '' 2,043 lakh has been impaired.

The management has assessed the potential impact of COVID-19 on the Company. Based on current assessment, the management is of the view that impact of COVID-19 on the operations of the Company and the carrying value of its assets and liabilities is minimal.

The company along with NSE, India INX, NSDL and CDSL have formed a consortium in the form of a Company incorporated under the Companies Act, 2013. On June 04, 2021, India International Bullion Holding IFSC Limited (IIBH) has been incorporated in India. The company has subscribed to 13,50,00,000 equity shares of IIBH of face value '' 1 at par amounting to '' 1350 lakh. The company''s holding in IIBH remain at 20% of the paid up capital of IIBH till March 3, 2022 and accordingly considered as an associate till March 3,2022. After March 3, 2022, Exchange''s holding fell below 20% of paid up capital of IIBH and stood at 14.43%.

As on March 31,2022 Exchange''s holding was at 14.43% of paid up capital of IIBH.

The Board of Directors of the company at its meeting held on February 04, 2021 has decided to award the contract of implementation of commodity derivatives platform to Tata Consultancy Services Ltd (TCS). The said contract is under process.

The Code on Social Security, 2020 (Code) relating to employee benefits during employment and post- employment benefits has received Presidential assent on in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code comes into effect has not been notified. The company will assess the impact of the Code when it comes into effect and will record any related impact in the period of the Code becomes effective.

Previous year figures have been regrouped/reclassified wherever necessary to conform to current year figures.

The Financial Statements were approved by the Audit Committee and Board of Directors on May 16, 2022.

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Mar 31, 2018

Notes:

(i) I n addition to the cash component of Base Minimum Capital, the amount of bank guarantees/fixed deposits receipts (Non cash component) forming part of SGF as at March 31, 2018 aggregate Rs, 5,493 lakh (as at March 31, 2017 Rs, 5,560 lakh).

(ii) As at March 31, 2018 and March 31, 2017, SGF does not include Base Minimum Capital of Non-SEBI registered members.

(iii) In accordance with the regulatory guidelines, the Company has conducted stress test at the end of the current financial year to determine adequacy of the Settlement Guarantee Fund (SGF). The SGF being adequate, no fresh contributions from the profits have been made during the current financial year.

33. SEGMENT REPORTING

IND AS 108 establishes standards for the way that companies report information about operating segments and related disclosures about products and services, and geographical areas. Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only Primary Reportable business segment. Further, since the Company renders services only in the domestic market in India and there is no geographical segment.

The operating lease arrangements, are renewable on a periodic basis and for most of the leases extend upto a maximum of ten years from their respective dates of inception and relates to rented premises. Some of these lease agreements have price escalation clauses. The operating leases referred above include leases relating to Investor Services Fund.

37. RELATED PARTY INFORMATION

Names of related parties and nature of relationship:

Nature of relationship Name of Related Party

Subsidiary Company Multi Commodity Exchange Clearing Corporation Limited (MCX CCL)

Shareholders'' Directors³ Mr. Amit Goela (w.e.f. 04.02.2016)

Mrs. Madhu Vadera Jayakumar (w.e.f. 04.02.2016)

Mrs. Padma Raghunathan⁴ (w.e.f. 04.02.2016)

Mr. Hemang Raja (w.e.f. 30.06.2016)

Mr. Chengalath Jayaram (w.e.f. 25.11.2016)

* Sitting fees are paid directly to the nominee institutions Independent Directors Mr. Saurabh Chandra (w.e.f. 03.07.2016)

Mr. Arun Bhargava (w.e.f. 19.11.2016)

Mr. Arun Kumar Nanda (w.e.f. 19.05.2015)

Dr. Govinda Marapalli Rao (w.e.f. 29.09.2015)**

Mr. Prithvi Haldea (w.e.f. 25.10.2016)

Mr. Subrata Kumar Mitra (w.e.f. 19.05.2015)

Mr. Shankar Aggarwal (w.e.f. 01.10.2017)

Ms. Pravin Tripathi (upto 12.08.2017)

Key Managerial Personnel (KMP) Mr. Mrugank Paranjape, MD & CEO (w.e.f. 09.05.2016)

Mr. Narendra Kumar Ahlawat, Chief Regulatory Officer (upto 31.03.2018) Mr. Rahi Racharla, Chief Information Officer, Technology (w.e.f 27.12.2016) Mr. Sanjay Wadhwa, Chief Financial Officer (w.e.f. 27.02.2017)

Mr. Ashwin Patel, Company Secretary (w.e.f. 01.07.2017)

Mr. Ajay Puri, Company Secretary (up to 30.06.2017)

Mr. Parveen Kumar Singhal, (President & Whole Time Director): upto 13.10.2017)

Others

Relatives of KMPs or company in which KMP Adya IT Services Private Limited

is interested and where transaction exists

Employee Welfare Trust MCX ESOP Trust

SEBI mandated IPF Trust Multi Commodity Exchange Investor (Client) Protection Fund (IPF)*

# Pursuant to SEBI circular no. CIR/CDMRD/DEICE/CIR/P/2017/53 dated June 13, 2017, MCX IPF Trust has ceased to be a related party w.e.f. July 01, 2017. Accordingly for FY 2017-18, transactions up to June 30, 2017 are considered as related party. Closing balance includes transactions from July 01, 2017 to March 31, 2018.

* Excludes gratuity and long term compensated absences which are actuarially valued at Company level and where separate amounts are not identifiable.

Notes :

1. There are no amounts written off or written back during the year in respect of debts due from or to related parties.

2. KMPs as on the respective dates are considered.

38. EMPLOYEE BENEFIT PLANS:

a. Post employment defined benefit plans:

The Company makes annual contributions to the Employee''s Group Gratuity Assurance Scheme administered by the Life Insurance Corporation of India (''LIC''), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of service.

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Company''s financial statements as at March 31, 2018 and March 31, 2017.

* 0 represents '' (0.28) lakhs $ 0 represents '' 0.03 lakhs

Additional Details:

Methodology adopted for Valuation is Projected Unit Credit Method.

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be true on different count. This only signifies the change in the liability if the difference between assumed and the actual is not following the parameters of the sensitivity analysis.

Since investment is with insurance company, Assets are considered to be secured.

Assumptions regarding future mortality experience are set in accordance with the Indian Assured Lives Mortality (2006-08).

Expected rate of return on plan assets is based on expectation of the average long term rate of return expected to prevail over the estimated term of the obligation on the type of the investments assumed to be held by LIC, since the fund is managed by LIC.

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotions and other relevant factors, such as supply and demand in the employment market.

The Company expects to contribute Rs, 62 lakhs to the plan assets during financial year 2018-19.

Actuarial Gains/Losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation.

b. Defined Contribution Plans:

Amounts recognized as expenses towards contributions to Provident and Family Pension Fund, Employee State Insurance Corporation and other funds by the Company are Rs, 214 Lakh (Previous Year Rs, 178 Lakh) Refer Note No. 26.

39. EMPLOYEE STOCK OPTION PLAN (ESOP):

During the year ended 31 March 2009, the shareholders of the Company approved the ''Employee Stock Options Plan 2008 (''ESOP - 2008''). Under the said scheme, 1,625,000 Equity Shares of '' 10 each have been allotted to ESOP Trust who will administer the ESOP Scheme on behalf of the Company. Out of which ESOP Trust has granted (a) 1,313,250 number of options convertible into 1,313,250 equity shares of Rs, 10 each to eligible employees on 2 July 2008 and 23 August 2008 in aggregate; (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs, 10 each to eligible employees on 24 October 2011; (c) 10,000 numbers of options convertible into 10,000 equity shares of Rs, 10 each to an eligible employee on 3 October 2012; (d) 25,300 numbers of options convertible into 25,300 equity shares of Rs, 10 each to eligible employees on 19 April 2013; (e) 10,000 numbers of options convertible into 10,000 equity shares of Rs, 10 each to an eligible employee on 19 February 2014 and (f) 172,600 numbers of options convertible into 172,600 equity shares of Rs, 10 each to eligible employees on November 11, 2014.

Each option entitles the holder to exercise the right to apply and seek allotment of one equity share of Rs, 10 each. Exercise period for each option granted on 2 July 2008 and 23 August 2008 is three years from the date of their respective vesting. Exercise period for each option granted on 24 October 2011, 3 October 2012, 19 April 2013 and 19 February 2014 and

11 November 2014 is one year from the date of their respective vesting.

Lapsed options available for reissuance are 53,654 (As at March 31, 2017: 45,582) shares.

The following table summarizes information about options exercised and granted during the year and about options outstanding and their remaining contractual life as at March 31, 2018:

For options granted on 2 July 2008 and 23 August 2008 under ESOP 2008 Scheme; the intrinsic value of each option is Nil. The estimated fair value of each option is Rs, 15.64 and Rs, 16.62 for options granted on 2 July 2008 and 23 August 2008 respectively. The weighted average fair values have been determined using the Binomial Option Pricing Model considering the following parameters:

Each option granted represents a right to the option grantee but not an obligation to apply for 1 fully paid up Equity Share of Rs, 10 each of the Company at duly adjusted exercise price after consolidation of share and bonus issue i.e. Rs, 144 pursuant to the corporate action during the year ended 31 March 2011.

For options granted on 24 October 2011, 3 October 2012, 19 April 2013, 19 February 2014 and 11 November 2014 under ESOP 2008 Schemes; the intrinsic value of each option is Nil. The estimated fair value of each option is Rs, 324.99, Rs, 342.64, Rs, 202.34, Rs, 181.47 and Rs, 363.18 for options granted on 24 October 2011, 3 October 2012, 19 April 2013, 19 February 2014 and 11 November 2014 respectively. The weighted average fair values have been determined using the Black Schole Formula considering the following parameters:

40. FINANCIAL INSTRUMENTS:

Financial instruments by category

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

Note: Investment in equity instrument & warrants are not held for trading. The company has chosen to measure these at FVTOCI irrevocably as the management believes that presently fair value gains and losses relating to these investments in Profit and Loss may not be indicative of the performance of the company.

The fair value of mutual funds is based on quoted price. The fair value of tax free bonds is based on quoted prices and market observable inputs.

The fair value of warrants & equity securities is based on the valuation provided by the certified values.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March 31, 2018:

* The carrying amount of financial asset measured at FVTOCI in the financial statements are a reasonable approximation of their fair values since the company does not anticiapate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

FINANCIAL RISK MANAGEMENT Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the company''s management.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Since the company has no borrowings, exposure to risk of change in market insterest rate is nil.

Foreign currency risk

The company periodically transacts internationally and few of the transactions are conducted in different currencies. As the volume of the transactions are few, the company has not entered in foreign exchange forward exchange contracts.

Derivative financial instruments

The company has not entered into any forward exchange contract being derivative instruments.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs, 631 lakhs and Rs, 281 lakhs as at March 31, 2018 and March 31, 2017 respectively and unbilled revenue amounting to Rs, 2248 lakhs and Rs, 1,997 lakhs as at March 31, 2018 and March 31, 2017 respectively.

Where receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Investment in mutual fund & bonds is with financial institutions with high credit rating assigned by the international credit rating agencies.

Liquidity risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Capital Risk Management (a) Risk Management

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Regulatory Risk

The Company requires a number of regulatory approvals, licenses, registrations and permissions to operate our business For example, the Company have licenses from SEBI in relation to, among others, introducing derivatives contracts on various commoditities The Company''s operations are subject to continued review and the governing regulations changes. The Company''s regulatory team constantly monitors the compliance with these rules and regulations. There have been several changes to the form and manner in which deemed recognized stock exchanges must make contributions to a Settlement Guarantee Fund. Should SEBI in the future vary the required contribution amounts to the Settlement Guarantee Fund, the Company may have to contribute more of funds to the Settlement Guarantee Fund which could materially and adversely affect the Company''s financial ability. The Company''s regulatory team keeps a track regarding the amendments in SEBI circulars/regulations pertaining to such settlement guarantee fund.

Clearing and Settlement Risk

Parties to a settlement may default on their obligations for reason beyond the control of the Company. Company guarantees the settlement of trade executed on the Company''s platform and maintains a settlement guarantee fund to support its guarantee obligations .SEBI introduced the guidelines on stress testing, Settlement Guarantee Fund ("SGF") to ensure that Company is compliant with International benchmarks and regulations.

1. Corporate Social Responsibility

As per Section 135 of the Companies Act 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

2. Event occurring after balance sheet date

The Board of Directors has recommended Equity dividend of Rs, 17/- per share (Previous year Rs, 15/-) for the financial year 2017-18 (Refer Note 40).

3. During the year, the Company received Income Tax Notices u/s 147 for reassessment of its Income for AY 2010-11 to AY 2013-14 and u/s 142 (2A) for conducting Special Audit for AY 2010-11 to AY 2014-15. The Company has obtained Interim Relief from the Hon Bombay High Court against the Notices of the Income Dept. u/s 147 and for AY 2012-13 and AY2013-14. The Interim Relief will also apply for Notices received u/s 142 (2A) for AY 2012-13 and AY 2013-14. Further the Company has received a Stay from the Hon Bombay High Court against Income Tax Notices u/s 142 (2A) for AY 2014-15. The Company is also in the process of filing Special Leave Petition before the Hon Supreme Court for Notice u/s 147 and 142(2A) for AY 2010-11 and AY 2011-12.

4. The Financial Statements were approved by the Audit Committee & Board of Directors on April 28, 2018.

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Mar 31, 2017

Notes :

(i) In addition to the cash component of Base Minimum Capital, the amount of bank guarantees/fixed deposits receipts (Non cash component) forming part of SGF as at 31 March, 2017 aggregate Rs,5,560.07 lakhs (as at 31 March, 2016 Rs,7,382.86 lakhs & at 31 March, 2015 Rs,8,159.83 lakhs).

(ii) As at March 31, 2017, SGF does not include Base Minimum Capital of Non-SEBI registered members. SGF Includes Base Minimum Capital (Cash component) of 606 members aggregating to Rs,2,662.80 lakhs who have not applied for registration with SEBI as at March 31, 2016 and Base Minimum Capital (Non cash component) comprising of bank guarantees/fixed deposits receipts as at 31 March, 2016 aggregate Rs,1,682.31 lakhs.

(iii) In accordance with the regulatory guidelines, the Company has conducted stress test at the end of the current financial year to determine adequacy of the Settlement Guarantee Fund (SGF). The SGF being adequate, no fresh contributions from the profits have been made during the current financial year.

I n addition to the matters as specified in contingent liabilities above, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business the impact of which is unascertainable. The Company''s management does not reasonably expect that the legal actions, when ultimately concluded and determined, will have adverse effect on the Company''s financial statements.

Other Commitments:

The Company has commitments to pay for the services related to (i) maintenance of core network equipment and

(ii) technology support and managed services based on long-term agreements, the cancellation of which may entail monetary compensation.

1. SEGMENT REPORTING

Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only Primary Reportable business segment as per Ind AS 108, "Operating Segments". Further, since the Company renders services only in the domestic market in India and there is no geographical segment.

2. RELATED PARTY INFORMATION Names of related parties and nature of relationship: Nature of relationship name of Related Party

Subsidiary Companies Multi Commodity Exchange Clearing Corporation Limited (MCX CCL)

SME Exchange of India Limited (SME) (Refer note no 43)

associate Company Metropolitan Clearing Corporation of India Limited (formerly known as

MCX-SX Clearing Corporation Limited) (up to 01.07.2015)

Shareholders'' directors Mr. Amit Goela (w.e.f. 04.02.2016)

Mrs. Madhu Vadera Jayakumar (w.e.f. 04.02.2016)

Mrs. Padma Raghunathan* (w.e.f. 04.02.2016)

Mr. Hemang Raja (w.e.f. 30.06.2016)

Mr. Chengalath Jayaram (w.e.f. 25.11.2016)

Mr. M. A. K. Prabhu* (up to 19.09.2016)

Mr. Ajai Kumar (up to 19.09.2016)

Mr. R. Amalorpavanathan* (up to 29.09.2015)

* Sitting fees are paid directly to the nominee institutions Independent directors Mr. Pravin Tripathi (w.e.f. 12.08.2014)

Mr. Arun Kumar Nanda (w.e.f. 19.05.2015)

Mr. Subrata Kumar Mitra (w.e.f. 19.05.2015)

Dr. Govinda Marapalli Rao (w.e.f. 29.09.2015)**

Mr. Saurabh Chandra (w.e.f. 03.07.2016)

Mr. Prithvi Haldea (w.e.f. 25.10.2016)

Mr. Arun Bhargava (w.e.f. 19.11.2016)

Mr. G. Anantharaman (up to 18.10.2016)

Mr. Satyananda Mishra (up to 18.11.2016)

Key managerial Personnel (KMP) Mr. Mrugank Paranjape, MD & CEO (w.e.f. 09.05.2016)

Mr. Parveen Kumar Singhal, President and Whole Time Director (up to 31.03.2016 : Joint Managing Director)

Mr. Ajay Puri, Company Secretary

Mr. Sanjay Wadhwa, Chief Financial Officer (w.e.f. 27.02.2017)

Mr. Rahi Racharla, Chief Information Officer, Technology Mr. Narendra Kumar Ahlawat, Chief Regulatory Officer Mr. V. Krishnan, Chief Regulatory Officer (up to 31.10.2016)

Mr. Sandeep Kumar Sarawgi, Chief Financial Officer (up to 08.08.2016) others

Relatives of KMPs or company in which KMP (i) PHD Chamber of Commerce and Industry is interested and where transaction exists (ii) Adya IT Services Private Limited

Controlled employee Welfare trust MCX ESOP Trust

SEBi mandated IPF trust Multi Commodity Exchange Investor (Client) Protection Fund (IPF)

** Dr. Govinda Marapalli Rao was appointed as an additional director from 08.08.2015 and his designation was changed on 29.09.2015.

3. Employee Benefit Plans:

a. Post employment defined benefit plans:

The Company makes annual contributions to the Employee''s Group Gratuity Assurance Scheme administered by the Life Insurance Corporation of India (''LIC''), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of service.

The following tables set out the funded status of the gratuity plans and the amounts recognized in the Company''s financial statements as at March 31, 2017 and March 31, 2016.

Additional details:

Methodology adopted for Valuation is Projected Unit Credit Method.

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be true on different count. This only signifies the change in the liability if the difference between assumed and the actual is not following the parameters of the sensitivity analysis.

Since investment is with insurance company, Assets are considered to be secured.

Assumptions regarding future mortality experience are set in accordance with the Indian Assured Lives Mortality (2006-08).

Expected rate of return on plan assets is based on expectation of the average long term rate of return expected to prevail over the estimated term of the obligation on the type of the investments assumed to be held by LIC, since the fund is managed by LIC.

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotions and other relevant factors, such as supply and demand in the employment market.

The Company expects to contribute Rs, 116.40 lakhs to the plan assets during financial year 2017-18.

Actuarial Gains/Losses are recognized in the period of occurrence under Other Comprehensive Income (OCI). All above reported figures of OCI are gross of taxation

4. Employee Stock option PLAN (ESoP):

During the year ended 31 March 2009, the shareholders of the Company approved the ''Employee Stock Options Plan 2008'' (''ESOP - 2008''). Under the said scheme, 1,625,000 Equity Shares of Rs,10 each have been allotted to ESOP Trust who will administer the ESOP Scheme on behalf of the Company. Out of which ESOP Trust has granted (a) 1,313,250 number of options convertible into 1,313,250 equity shares of Rs,10 each to eligible employees on 2 July 2008 and 23 August 2008 in aggregate; (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs,10 each to eligible employees on 24 October 2011; (c) 10,000 numbers of options convertible into 10,000 equity shares of Rs,10 each to an eligible employee on 3 October 2012; (d) 25,300 numbers of options convertible into 25,300 equity shares of Rs,10 each to eligible employees on 19 April 2013; (e) 10,000 numbers of options convertible into 10,000 equity shares of Rs,10 each to an eligible employee on 19 February 2014 and (f) 172,600 numbers of options convertible into 172,600 equity shares of Rs,10 each to eligible employees on November 11, 2014.

For options granted on 24 October 2011, 3 October 2012, 19 April 2013, 19 February 2014 and 11 November 2014 under ESOP 2008 Schemes; the intrinsic value of each option is Nil. The estimated fair value of each option is Rs,324.99, Rs,342.64, Rs,202.34, Rs,181.47 and Rs,363.18 for options granted on 24 October 2011, 3 October 2012, 19 April 2013, 19 February 2014 and 11 November 2014 respectively. The weighted average fair values have been determined using the Black Schole Formula considering the following parameters:

5. FINANCIAL Instruments:

Financial instruments by category

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged

in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

FINANCIAL RISK MANAGEMENT Financial risk factors

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the company''s management.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Since the company has no borrowings, exposure to risk of change in market interest rate is nil.

Foreign currency risk

The company periodically transacts internationally and few of the transactions are conducted in different currencies. As the volume of the transactions are few, the company has not entered in foreign exchange forward exchange contracts.

derivative financial instruments

The company has not entered into any forward exchange contract being derivative instruments.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs,281.34 lakhs and Rs,419.13 lakhs as at March 31, 2017 and March 31, 2016 respectively and unbilled revenue amounting to Rs,1,997.22 lakhs and Rs,1,838.07 lakhs as at March 31, 2017 and March 31, 2016 respectively.

Where receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

Investment in mutual fund & bonds is with financial institutions with high credit rating assigned by the international credit rating agencies.

Liquidity risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

Capital Risk Management (a) Risk Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders. The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

6. corporate social responsibility

As per Section 135 of the Companies Act 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities.

7. Pursuant to the Consent Terms between the Company and Metropolitan Stock Exchange of India Ltd. (MSEI) filed with and taken on record by the H''ble Bombay High Court, the Company has since received necessary approval and no objection from SEBI for conversion of warrants of MSEI into its Equity Shares. Accordingly, the Company vide its letter dated September 29, 2016 to MSEI has exercised the conversion right of 26,51,77,600 warrants issued as per the Scheme of Reduction cum Arrangement into 26,51,77,600 Equity shares of ''1 each. The equity shares have since been alloted to the company and have been credited to demat account of the Company on October 3, 2016. Amount of Rs,15,07,40,072 has been received towards balance 15,07,40,072 warrants on October 14, 2016 as per the Consent Terms.

8. disclosure in respect of specified bank notes held and transacted

The Company did not have any holding or dealing in Specified Bank Notes during the period November 8, 2016 to December 31, 2016, as envisaged in notification G.S.R. 308(E) dated March 30, 2017.

9. Exceptional ITEMS

Pursuant to compliance of regulatory inspection, certain penalties pertaining to financial years 2010-11 and 2011-12 amounting to Rs,194 lakhs were transferred to Multi Commodity Exchange Investor (Client) Protection Fund (IPF). Further, similar penalties for earlier years pertaining to financial years 2007-08 to 2009-10 amounting to Rs,369.1 lakhs were transferred to IPF. Accordingly, during the year ended March 31, 2016 a total sum of Rs,563.1 lakhs was transferred to IPF and disclosed as an exceptional item.

10. SME EXCHANGE of INDIA LIMITED (SME)

The Board of Directors of SME Exchange of India Limited (SME) at its meeting held on January 19, 2015 considered that SME had not commenced any operations and with no possibility of commencing in the foreseeable future, agreed to the membersRs, voluntary winding up. The Directors of SME after having made inquiry into the affairs of the Company and on the basis of the Auditors report for the period commencing from April 1, 2014 to January 21, 2015, formed the opinion that the SME is solvent and will be able to pay its debt in full within 36 months from the commencement of winding up. Thereafter, the members of SME at its Second Extra Ordinary General Meeting held on March 18, 2015, accorded their consent for members'' voluntary winding up, pursuant to the provisions of Section 484(1) (b) of the Companies Act, 1956 and also approved the appointment of a Liquidator for the same.

The Liquidator realized all the assets and paid off the liabilities and returned the share capital to the respective shareholders. Thereafter, the liquidator at the final General Meeting of SME held on March 28, 2016, submitted the accounts showing in detail the manner in which the winding up has been conducted and the assets of the SME have been disposed off which was approved by the shareholders of SME. The Company has realized ''3.7 lakhs against its carrying value of ''4.0 lakhs in equity shares. The requisite filing with Registrar of the Companies and the Official Liquidator w.r.t. the final general meeting is being done by the Liquidator and the final order of dissolution is awaited.

11. EVENT occurring AFTER BALANCE SHEET DATE

The Board of Directors has recommended Equity dividend of ''15/- per share (Previous year ''6.5/-) for the financial year 2016-17 (Refer Note 38).

12. The Financial Statements were approved by the Audit Committee & Board of Directors on May 4, 2017.

13. FIRST-TIME Adoption oF IND AS

These are the Company''s first financial statements prepared in accordance with Ind AS. The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from April 1, 2016, with a transition date of April 1, 2015. Ind AS 101 - "First-time Adoption of Indian Accounting Standards" requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended March 31, 2017 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP (I GAAP) have been recognized directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions applied in the transition from IGAAP to Ind AS.

A. optional Exemptions availed

1. Property, Plant and Equipment

The Company has availed the exemption with regards to fair valuation of Property, Plant and Equipment on the date of transition as defined in Para 7AA of Appendix - D of Ind AS 101 that carrying value of Property, Plant and Equipment as on date of transition has been considered as deemed cost for the purpose of initial measurement under Ind AS.

2. Investment in subsidiaries and associates

The Company has availed the exemption with regards to fair valuation of investments in subsidiaries and associates as per Para 14 & 15 of Appendix - D of Ind AS 101 and carrying value as per previous IGAAP is considered as deemed cost under Ind AS.

3. Share-based payment

I nd AS 102 Share-based Payment has not been applied to equity instruments in share based payment transactions that vested before the transition date (April 01, 2015). The remaining options have been measured at fair value as against intrinsic value previously as measured under IGAAP. The excess of stock compensation expense measured using fair value over the cost recognized under IGAAP using intrinsic value has been adjusted in ''ESOP Compensation Reserve'', with the corresponding impact taken to the retained earnings as on the transition date.

4. Designation of previously recognized financial instruments

Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments at Fair Value Through Other Comprehensive Income (FVTOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The company has opted to apply this exemption for its investment in equity Investments.

B. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from IGAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at April 01, 2015 (Transition Date) and March 31, 2016

II. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2016

III. Reconciliation of Total Comprehensive Income for the year ended March 31, 2016

IV. Reconciliation of Equity as at April 01, 2015 and as at March 31, 2016

The following explains the material adjustments made while transition from previous accounting standards to IND AS:

A. Investments

- Investments in tax free bonds and mutual funds are carried at fair value through Profit and loss under Ind AS as compared to being carried at cost under IGAAP.

- Investment in equity instruments are carried at fair value through OCI in Ind AS compared to being carried at cost under IGAAP.

B. NPN / PoP Security Deposits

NPN / POP equipment deposits from the members are measured at amortized cost.

C. Employee Benefits Expenses (Gratuity)

Both under Indian GAAP and Ind AS, the company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, re-measurements are recognized in other comprehensive income.

D. ESoP

Employee compensation expenses relating to share based payment (ESOP) is measured at fair value of the option as per Ind AS 102 as compared to intrinsic value under IGAAP.

E. other comprehensive income

Under IGAAP, the company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled profit or loss as per Indian GAAP to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

F. other adjustments

Movement in other comprehensive income includes fair value change on account of Investment in equity instruments of other entities - Dubai Gold and Commodities Exchange (DMCC), Metropolitan Stock Exchange of India Limited, Metropolitan Clearing Corporation of India Limited, Investments in warrants of other company - Metropolitan Stock Exchange of India Limited designated as Fair value through other comprehensive income.

G. Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. ''Ind AS 12 Income Taxes'' requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind ''AS 12 Income Taxes'' approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

H. Exceptional items reversed by Rs,6,104.53 lakhs is towards aggregate loss, diminution and provision on account of the investments in MSEI for FY 2015-16, the same has been routed through OCI net of tax.

I. Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

J. Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

K. Financial assets and financial liabilities have been regrouped/reclassified wherever required to comply with

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Mar 31, 2016

1. SEGMENT REPORTING

Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only Primary Reportable business segment. Further, since the Company renders services only in the domestic market in India and hence there is no geographical segment.

2. There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account the available data with the Company.

3. STOCK BASED COMPENSATION :

a) During the year ended 31 March 2009, the shareholders of the Company approved the ''Employee Stock Options Plan 2008 (''ESOP - 2008''). Under the said scheme, 1,625,000 Equity Shares of Rs. 10 each have been allotted to ESOP Trust who will administer the ESOP Scheme on behalf of the Company. Out of which, ESOP Trust has granted (i) 1,313,250 number of options convertible into 1,313,250 equity shares of Rs. 10 each to eligible employees on 2 July 2008 and 23 August 2008 in aggregate; (ii) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs.10 each to eligible employees on 24 October 2011; (iii) 10,000 numbers of options convertible into 10,000 equity shares of Rs.10 each to an eligible employee on 3 October 2012; (iv) 25,300 numbers of options convertible into 25,300 equity shares of Rs.10 each to eligible employees on 19 April 2013 ; (v) 10,000 numbers of options convertible into 10,000 equity shares of Rs. 10 each to an eligible employee on 19 February 2014 and (vi) 172,600 numbers of options convertible into 172,600 equity shares of Rs. 10 each to eligible employees on November 11, 2014.

4. Exceptional Items

a) The Company, along with Financial Technologies (India) Limited (FTIL), an erstwhile anchor investor/promoter of the Company, held equity shares and warrants in Metropolitan Stock Exchange of India Limited (MSEI), (formerly MCX-Stock Exchange). As per the applicable SEBI regulations, MSEI was required to adjust its shareholding pattern so as to bring it within the limits prescribed by the SEBI regulations within the time prescribed, i.e. June 19, 2015. Towards this end, the Company made serious efforts to dispose off the warrants. However, these efforts were significantly hampered by several factors that reduced the marketability of MSEI''s warrants, such as consistently reducing market share and net worth which reduced the value and demand for MSEI''s shares and warrants. This made it difficult to dispose off the warrants. Since these factors were outside the Company''s control, the Company approached SEBI seeking an extension of time to dispose off the warrants. Also, in view of the merger of the SEBI and the FMC, the Company also requested SEBI to consider treating the Company on par with recognized Stock Exchanges so that the Company could hold upto 15% shareholding/warrants in MSEI. SEBI, however, did not grant the Company''s request. Despite these factors, the Company continued to make vigorous efforts to dispose off the warrants. The Company''s efforts, however, were thwarted by MSEI, who announced a rights issue of equity shares on May 29, 2015 at par i.e. at Re.1 per share. Since the rights issue remained open until July 9, 2015, it was virtually impossible to dispose off all the warrants before June 19, 2015. Apprehending that MSEI would cancel the warrants and misappropriate the deposit placed by the Company with MSEI against the warrants, the Company filed a Suit against MSEI before the Hon''ble Bombay High Court seeking an injunction against cancellation of the warrants and appropriation of the deposit. The Company also sought refund of the amount of Rs.415.92 million, being the amount of deposit presently held by MSEI against the warrants. Vide its interim orders dated July 9, 2015 and July 10, 2015, the Hon''ble High Court restrained MSEI from cancelling and / or extinguishing the warrants or any rights relating thereto, and from dealing in any manner with the remaining deposit of Rs.415.92 million till further orders. The Hon''ble Court also restrained MSEI from taking any steps in pursuance of any Board resolution that MSEI may have passed for cancellation of the warrants. By a further order dated August 3, 2015, the Hon''ble Court recorded MSEI''s statement that MSEI would deposit a sum of Rs.200.00 million in Court within a period of four weeks, on a without prejudice basis, to establish its bona fides. The matter was heard on October 8, 2015 and the order pronounced on October 13, 2015. The Hon''ble Court, inter alia, has held that although the Company may have been deprived of its rights to trade the warrants for shares or trade the warrants for consideration after June 19, 2015 this does not mean that the extinguishment of the warrants would entail appropriation of the deposit. The Hon''ble Court has also held that the money admittedly belongs to the Company and there is no provision in law or in contract whereby MSEI could appropriate the money towards its own capital reserves. In view of the above, the Hon''ble Court has concluded that it would not be desirable to allow MSEI to retain the deposit pending trial of the Suit. Accordingly, the Hon''ble Court has made the Company''s Notice of Motion absolute and directed MSEI to deposit an additional sum of Rs.21,59,17,672/- to the credit of the suit account, within a period of eight weeks from the date of the Order. Thus, the total amount deposited by MSEI would be equal to Rs.415.92 million. This amount is to be invested in a fixed deposit with a nationalized bank pending hearing of the Suit ("October 13 Order").

On December 9, 2015, MSEI filed Appeal No. (L) 927 of 2015 before a Division Bench of the Bombay High Court against the October 13 Order. MSEI also filed Notice of Motion (L) No.3471 of 2015 seeking a stay on the operation and implementation of the October 13 Order, pending final hearing and disposal of the Appeal inter alia on the grounds that (a) the Company was aware that it had to divest its excess shareholding in the form of Warrants by June 19, 2015; (b) MSEI was required to ensure compliance of applicable laws and regulations, and thus only cancelled the warrants as otherwise it apprehended being derecognized by SEBI; (c) MSEI had established its bona fides by not acting on its Board Resolution dated June 27, 2015 and also by depositing a sum of Rs.200.00 million with the Bombay High Court; and (d) Given that the Company''s warrants have not been cancelled and MSEI has been restrained from implementing its Board Resolution dated June 27, 2015, MSEI cannot be additionally called upon to deposit a further Rs.215.92 million in Court. The matter was listed on 17.02.2016, for hearing on the Notice of Motion filed in the said appeal. On December 10, 2015, MSEI also filed Notice of Motion (L) 3486 of 2015 in the Suit before the Single Judge seeking a vacation of the October 13 Order on the ground that MSEI has now passed a resolution withdrawing their earlier resolution of cancellation.

Vide an interim order dated December 11, 2015, the Division Bench extended the time given to MSEI for deposit of the amount of Rs.215.92 million till the next date of hearing. As the matter is yet to be heard on merits, this interim order granting further time to MSEI to deposit the money has been extended from time to time. In March, 2016, the assignment of the Judges changed and the matter was listed before a different Bench. However, in view of the fact that the earlier Division Bench had already heard the matter and was aware of the facts, both parties made a representation to the Ld. Chief Justice of the Bombay High Court seeking assignment of the matter to the same Division Bench. The parties are still awaiting necessary directions from the Ld. Chief Justice for re-assignment of the matter.

In view of the above, the Company has valued the warrants at its face value of Re.1 each and brought down the carrying cost by Rs.425.89 million. As the Company was only able to sell 148,277,938 warrants to various parties/entities at bids below its carrying cost, a loss of Rs.134.83 million was incurred on the sale of these warrants. Further, based on the market price determined on a weighted average basis for the sale of warrants by MCX, the equity shares have been brought to the lower of cost and this aforesaid market value. This is as per the Company''s Accounting Policy on current investments and accordingly a provision of Rs.33.30 million has been made. The aggregate loss, diminution and provision of Rs.594.02 million on account of the investments in MSEI are exceptional in nature and were accordingly disclosed in the financial results for the quarter ended June 30, 2015. Further provision of Rs.16.43 million has been made in quarter ended March 31, 2016 towards equity shares investments as per Company''s Accounting Policy. The aggregate loss, diminution and provision on account of the investments in MSEI for FY 2015-16 is Rs.610.45 million. As at March 31, 2016, the Company held 6,65,99,408 equity shares of MSEI (valued at Rs.57.25 million at the rate of Rs.0.86 per share) and 41,59,17,672 warrants of MSEI (valued at Rs.415.92 million) and 65,00,000 equity shares of Metropolitan Clearing Corporation of India Limited (MCCIL) (formerly known as MCX-SX Clearing Corporation Limited (valued at Rs.65.00 million).

b) Pursuant to compliance of regulatory inspection, certain penalties pertaining to financial years 2010-11 and 2011-12 amounting to Rs.19.40 million were transferred to Multi Commodity Exchange Investor (Client) Protection Fund (IPF). Further, similar penalties for earlier years pertaining to financial years 2007-08 to 2009- 10 amounting to Rs.36.91 million transferred to IPF. Accordingly during the year ended March 31, 2016 a total sum of Rs.56.31 million was transferred to IPF and disclosed as an exceptional item.

5. The Board of Directors of SME Exchange of India Limited (SME) at its meeting held on January 19, 2015 considered that SME had not commenced any operations and with no possibility of commencing in the foreseeable future, agreed to the members'' voluntary winding up. The Directors of SME after having made inquiry into the affairs of the Company and on the basis of the Auditors report for the period commencing from April 1, 2014 to January 21, 2015, formed the opinion that the SME is solvent and will able to pay its debt in full within 36 months from the commencement of winding up. Thereafter, the members of SME at its Second Extra Ordinary General Meeting held on March 18, 2015, accorded their consent for members'' voluntary winding up, pursuant to the provisions of Section 484(1) (b) of the Companies Act, 1956 and also approved the appointment a Liquidator for the same.

The Liquidator realised all the assets and paid off the liabilities and returned the share capital to the respective shareholders. Thereafter, the liquidator at the final General Meeting of SME held on March 28, 2016, submitted the accounts showing in detail the manner in which the winding up has been conducted and the asset of the SME has been disposed off which was approved by the shareholders of SME. The Company has realised Rs.0.37 million against its carrying value of Rs.0.40 million in equity shares. The requisite filing with Registrar of the Companies and the Official Liquidator w.r.t. the final general meeting is being done by the Liquidator and the final order of dissolution is awaited.

6. During the year ended 31 March, 2016, the Company has spent Rs.29.69 million (previous year Rs.5.33 million) as Corporate Social Responsibility (CSR) expenditure.

7. With effect from September 28, 2015 Forward Markets Commission was merged with Securities and Exchange Board of India and accordingly SEBI regulations are applicable to the Company. As per clause 3 of Securities and Exchange Board of India (Regulatory Fees on Stock Exchanges) Regulations, 2006, every recognised stock exchange is required to pay regulatory fees on its annual turnover at the rate prescribed from time to time. Accordingly, as per the prevalent rates the Company has accrued regulatory fees of Rs.21.20 million, which is disclosed under Note 22 "Other Expenses".

8. During the previous year, pursuant to Companies Act, 2013 (''the Act'') being effective from 1 April, 2014, the Company has revised depreciation rates on certain fixed assets as per the useful life specified in ''Part C'' of Schedule II of the Act. In respect of assets whose useful life is already exhausted as on 1 April, 2014, depreciation of Rs. 87.55 million (net of tax impact of Rs. 29.76 million) has been adjusted in the Retained Earnings, in accordance with the requirements of Schedule II of the Act.

Consequent to the applicability of the Companies Act, 2013 with effect from 1 April, 2014 depreciation for the year ended 31 March, 2015 charged to the Statement of Profit and loss was higher by Rs.28.55 million for the assets, whose useful life continues beyond 1 April, 2014.

9. In accordance with the directions of the Forward Markets Commission (FMC), a Special Audit of the Company was carried out for the period since inception of the Company to 30 September, 2013. The terms of reference, inter alia, included identification of related parties (as defined by FMC in the terms of reference and a working definition arrived at for the purpose of the review), review of non-trading transactions between the Company and significant related parties, and review of transactions of expenses incurred (individually) above Rs. 2.50 million. As per the Report, the working definition of related parties is not as may be defined under any provisions of any prevailing laws or guidance from any professional bodies in India.

The Final Report of the Special Audit was received on 21 April, 2014 and was placed before the Board of the Company on 26 April, 2014. The Management of the Company after making a detailed analysis of the observations in the Report, and after ascertaining the facts in each case has taken appropriate action including legal and filing of recovery suits as it deemed fit. As a part of this action, Rs.112.07 million (Rs.35.10 million included under Other income - note 19 under the head "Miscellaneous Income" and Rs.76.97million included under Other expenses - note 22 under the head "Provision for doubtful advances" was recovered during the previous year ended 31 March, 2015.

10. Forward Markets Commission (FMC) had issued revised norms regarding Shareholding, Ownership, Net worth, Fit & Proper criteria, etc. on 6 May, 2014. Pursuant to this order, in addition to other entities, Kotak Mahindra Bank Ltd acquired 15% equity stake in the Company from Financial Technologies (India) Limited (FTIL, erstwhile Promoter of the Company) during the year. Accordingly, FTIL is no longer a related party w.e.f. 29 August, 2014.

41. The previous year figures have been reclassified / regrouped to conform to this year''s classification.

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Mar 31, 2015

1. Contingent liabilities and commitments (to the extent not Provided FOR)

a) contingent liabilities:

Rs,in million

Particulars as at as at 31 march 2015 31 march 2014

(i) Claims against the Company not acknowledged as debts:

- Income tax demands against which the Company is in appeals 51.18 42.56

(including interest)

- Others (excluding interest) 7.59 6.35

(ii) Bank guarantee given 36.50 36.50

b) In addition to the matters as specified in (a) above, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company''s management does not reasonably expect that the legal actions, when ultimately concluded and determined, will have adverse effect on the Company''s financial statements.

c) commitments:

(i) capital commitments:

The estimated amount of capital contracts remaining to be executed and not provided for (net of advances) is Rs. 64.16 million (as at 31 March 2014: Rs. 2.47 million).

(ii) Other commitments:

The Company has commitments to pay for the services related to (i) maintenance of core network equipment and (ii) technology support and managed services based on long-term agreements, the cancellation of which may entail monetary compensation.

2. Segment Reporting

Based on the risks and returns identified, organizational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only Primary Reportable business segment. Further, since the Company renders services mainly in the domestic market in India there is no geographical segment.

3. Related Party information:

a) names of related parties and nature of relationship:

(i) company having significant influence over the company:

Financial Technologies (India) Limited (FTIL) (up to 29 August, 2014) [Refer Note 36(i)] (ii) Subsidiary companies:

a) Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).

b) SME Exchange of India Limited (SME) (Refer Note 38)

(iii) associate company:

MCX SX Clearing Corporation Limited (MCX-SX CCL)

(iv) Shareholders'' Directors

a) Ajai Kumar

b) R.Amalorpavanathan*

c) M. A. K. Prabhu*

d) B. V. Chaubal* (up to December 31,2014)

e) K. N. Reghunathan* ( upto August 19, 2014)

f) P Paramasivam* ( upto August 11, 2014)

g) P. Satish ( upto July 4, 2014)

h) Rajiv Abhyankar (upto June 26, 2014)

(v) Key managerial Personnel (KmP):

a) Parveen Kumar Singhal - Joint Managing Director

b) Sandeep Kumar Sarawgi - Chief Financial Offer

c) Ajay Puri - Company Secretary and Chief Compliance Offer

d) Manoj Vaish - Managing Director & CEO (up to 10 May,2014)

e) Shreekant Javalgekar - Managing Director & CEO (up to 22 October, 2013)

(v) Others:

(A) Relatives of KMPs or company in which KMP is interested and where transaction exists: Adya IT Services Private Limited

(B) Controlled Employee Welfare Trust : MCX ESOP Trust

(C) Multi Commodity Exchange Investor (Client) Protection Fund (IPF) * Sitting fees are paid directly to the nominee institutions

4. Pursuant to Companies Act, 2013 (''the Act'') being effective from 1 April, 2014, the Company has revised depreciation rates on certain fixed assets as per the useful life specified in ''Part C'' of Schedule II of the Act. In respect of assets whose useful life is already exhausted as on 1 April, 2014, depreciation of Rs. 87.55 million (net of tax impact of Rs. 29.76 million) has been adjusted in the Retained Earnings, in accordance with the requirements of Schedule II of the Act.

Consequent to the applicability of the Companies Act, 2013 with effect from 1 April, 2014 depreciation for the year ended 31 March, 2015 charged to the Statement of Profit and loss is higher by Rs. 28.55 million for the assets, whose useful life continues beyond 1 April, 2014

5. In accordance with the directions of the Forward Markets Commission (FMC), a Special Audit of the Company was carried out for the period since inception of the Company to 30 September, 2013. The terms of reference, inter alia, included identification of related parties (as defend by FMC in the terms of reference and a working definition arrived at for the purpose of the review), review of non-trading transactions between the Company and significant related parties, and review of transactions of expenses incurred (individually) above Rs. 25 Lakhs. As per the Report, the working definition of related parties is not as may be defend under any provisions of any prevailing laws or guidance from any professional bodies in India.

The Final Report of the Special Audit was received on 21 April, 2014 and was placed before the Board of the Company on 26 April, 2014. The Management of the Company after making a detailed analysis of the observations in the Report, and after ascertaining the facts in each case has taken appropriate action including legal and fling of recovery suits as it deemed ft. As a part of this action, Rs. 112.07 million (Rs. 35.10 million included under Other income – note 19 under the head "Miscellaneous Income" and Rs. 76.97million included under Other expenses – note 22 under the head "provision for doubtful advances" was recovered during the year ended 31 March, 2015.

6. (i) Forward Markets Commission (FMC) had issued revised norms regarding Shareholding, Ownership, Net worth, Fit &Proper criteria, etc. on 6 May, 2014. Pursuant to this order, in addition to other entities, Kotak Mahindra Bank Ltd acquired 15% equity stake in the Company from Financial Technologies (India) Limited (FTIL, erstwhile Promoter of the Company) during the year. Accordingly, FTIL is no longer a related party w.e.f 29 August, 2014.

(ii) The Board of Directors had constituted a Negotiation Committee to discuss the contracts with entities related to the erstwhile promoter group, in particular, Financial Technologies (India) Limited (FTIL). Consequent to the negotiations, effective 1 July, 2014 the Company entered into Master Amendment to Principal Agreements with FTIL.

(iii) Consequent to the Master Amendment to the Principal Agreements with FTIL and divestment by FTIL of its entire stake in the Company, the Company has complied with the FMC Order dated 17 December, 2013 and the revised norms regarding shareholding, ownership, net worth, Fit & Proper Criteria, etc. of the Nationwide

Multi Commodity Exchanges (NMCE) dated 6 May, 2014. Accordingly, FMC vide its letter, dated 29 September, 2014 granted its approval for Continuous Contract Launch Calendar for the futures contracts expiring in the year 2015 and onwards.

7. (i) During the year, the Company converted 2,10,46,514 warrants of Metropolitan Stock Exchange of India Limited (MSXI) [(formerly known as ''MCX Stock Exchange Limited (MCX-SX)] into equity shares. During the year the Company also sold 3,05,39,982 number of warrants. Accordingly, as at 31 March, 2015 the Company has investments in 482,11,514 (as at 31 March, 2014: 27,165,000) equity shares and 58,25, 83,504 (as at 31 March, 2014: 634,170,000) warrants of MSXI and investments in 6,500,000 equity shares of MCX-SX Clearing Corporation Limited (MCX-SX CCL). The warrants are valid till 19 June, 2015 and each warrant entitles the Company to subscribe to one equity shares of MSXI at any time after six months from the date of issue of warrants. The warrants are freely transferable by endorsements and delivery. The warrants do not carry any dividend or voting rights.

(ii) Pursuant to SEBI Order dated 19 March, 2014, the Company has been directed by SEBI to divest its holding in both MSXI and MCX-SX CCL. The Company through various correspondence and vide its recent letters dated 30 April, 2015 and 4 May, 2015 has once again represented to SEBI that FTIL and the Company no longer act in concert, especially in view of the developments during the year, the Company may be permitted to hold up to 15% of the paid up capital of MSXI and be granted extension of time till 31 December, 2015 to hold its warrants.

(iii) In accordance with Accounting Standard 13 on "Accounting for Investments" and the Company''s accounting policy, current investments are to be carried at the lower of cost and fair value in the Balance Sheet. Based on the latest available financial statements of these companies, the Management of the Company is of the view that the aggregate carrying amount of investments of Rs. 1,313.90 million which is equivalent to the cost of their acquisition represents the fair value of these investments as at 31 March, 2015.

8. (i) The Board of Directors of SME Exchange of India Limited (SME) in its meeting held on January 19, 2015 considered that SME had not commenced any operations and with no possibility of commencing in the foreseeable future, agreed to the members'' voluntary winding up and decided that the cut-off date for the financial statements shall be January 21, 2015. Further, the members of SME at its Second Extra Ordinary General Meeting, held on March 30, 2015, accorded their consent for its winding up pursuant to the provisions of Section 484(1) (b), of the Companies Act, 1956. The Directors of SME after having made inquiry into the affairs of the Company and on the basis of the Auditors report for the period commencing from April 1, 2014 to January 21, 2015, and Declaration of Solvency, formed the opinion that the Company is solvent and will able to pay its debt in full within 36 months from the commencement of winding up.

(ii) In accordance with Accounting Standard 13 on "Accounting for Investments" and the Company''s accounting policy long-term investments are stated at cost less provision for diminution. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management investments are to be carried at the lower of cost and fair value in the balance sheet. Accordingly, provision for diminution of Rs. 0.11 million has been made for the Company''s investment in SME.

9. During the year, the Company has spent Rs. 5.33 million as Corporate Social Responsibility (CSR) expenditure.

10. The previous year figures have been reclassified / regrouped to conform to this year''s classifcation.

---

Mar 31, 2014

1. General Information

Multi Commodity Exchange of India Limited (the ''Company'') is an electronic commodity futures exchange. The Company is a demutualised Exchange and has permanent recognition from the Government of India to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions.

2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE ExTENT NOT PROVIDED FOR)

a. Contingent liabilities:

(Rs. in millions)

Particulars As at As at 31 March 2014 31 March 2013

1) Claims against the Company not acknowledged as debts:

- Income tax demands against which the Company is in appeal 42.56 30.34 (including interest thereon)

- Others 6.35 2.41

2) Bank guarantee given 36.50 36.50

b. Commitments:

i. Capital Commitments:

The estimated amount of capital contracts remaining to be executed and not provided for (net of advances) is Rs. 2.47 millions (As at 31 March 2013: Rs. 5.26 millions).

ii. Other Commitments:

As at 31 March, 2014, the Company has commitments to pay for the services related to (i) installations and maintenance of core network equipment and (ii) technology support and managed services based on long-term non-cancellable agreements, the cancellation of which could entail significant monetary compensation. Further, as stated in Note 35, the compensation will be subject to the outcome of agreements / conclusions by the Negotiations Committee, the financial implications, if any, in this regard cannot at present be ascertained.

3. SEGMENT REPORTING

Based on the risks and returns identified, organisational structure and the internal financial reporting system, the business segment is the primary segment for the Company and accordingly "business of facilitating trading in commodities and incidental activities thereto" is considered as the only Primary Reportable business segment. Further, since the Company renders services mainly in the domestic market in India there is no geographical segment.

4. RELATED PARTY INFORMATION:

a. Names of related parties and nature of relationship:

(i) Company having significant infuence over the Company:

Financial Technologies (India) Limited (FTIL) (Refer Note 36)

(ii) Subsidiary Companies:

a) Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).

b) SME Exchange of India Limited (SME).

(iii) Associate Company:

MCX SX Clearing Corporation Limited (MCX-SX CCL).

(iv) Key Managerial Personnel (KMP):

a) Manoj Vaish - Managing Director and CEO (w.e.f. 1 February 2014)*

b) Shreekant Javalgekar - Managing Director and CEO (up to 22 October 2013)

c) Lambertus Rutten - Managing Director and CEO (upto 30 June 2012) * upto 10 May 2014

(v) Others:

(A) Entities over which KMP are able to exercise significant infuence and where transaction exists (enterprises that have a member of key management in common with the reporting enterprise):

Boursa Africa Limited (up to 30 June 2012)

(B) Controlled Employee Welfare Trust MCX ESOP Trust

(C) Multi Commodity Exchange Investor (Client) Protection Fund (IPF)(Refer Note below)

Note

As per the FMC Circular dated 13 January 2014, IPF Trust has been shown as a related party from the financial year 2013-14 onwards.

Notes forming part of the financial statements

Notes:

(i) There are no amounts written of or written back during the year in respect of debts due from or to related parties.

(ii) Previous year''s figures are given in brackets.

(iii) **The Compensation Committee at its meeting held on October 29, 2013, considering FMCs Directive vide letter no. 4/2/2013/(MCX)-MD-1 dated 17th October, 2013, decided that the stock options granted to Mr. Javalgekar which have not vested and option vested but not exercised be cancelled.

5. EMPLOYEE BENEFIT PLANS :

Defined contribution plans: Amounts recognised as expenses towards contributions to provident fund, employee state insurance corporation and other funds by the Company are Rs. 10.68 millions (Previous Year Rs. 9.85 millions).

6. There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the auditors.

7. STOCK BASED COMPENSATION :

a) During the year ended 31 March 2009, the shareholders of the Company approved the ''Employee Stock Options Plan 2008 (''ESOP - 2008''). Under the said scheme, 1,625,000 Equity Shares of Rs. 10 each (post consolidation and bonus) have been allotted to ESOP Trust who will administer the ESOP Scheme on behalf of the Company.

Out of which ESOP Trust has granted (a) 1,313,250 (post consolidation of shares and bonus issue) number of options convertible into 1,313,250 equity shares of Rs. 10 each to eligible employees on 2 July 2008 and 23 August 2008 in aggregate; (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs. 10 each to eligible employees on 24 October 2011; (c) 10,000 numbers of options convertible into 10,000 equity shares of Rs. 10 each to an eligible employee on 3 October 2012;(d) 25,300 numbers of options convertible into 25,300 equity shares of Rs. 10 each to eligible employees on 19 April 2013 and (e) 10,000 numbers of options convertible into 10,000 equity shares of Rs. 10 each to an eligible employee on 19 February 2014.

Each option entitles the holder to exercise the right to apply and seek allotment of one equity share of Rs. 10 each. Exercise period for each option granted on 2 July 2008 and 23 August 2008 is three years from the date of their respective vesting. Exercise period for each option granted on 24 October 2011, 3 October 2012, 19 April 2013 and 19 February 2014 is one year from the date of their respective vesting.

e) For options granted on 24 October 2011, 3 October 2012, 19 April 2013 and 19 February 2014 under ESOP 2008 Schemes; the intrinsic value of each option is Rs. Nil. The estimated fair value of each option is Rs. 324.99, Rs. 342.64, Rs. 202.34 and Rs. 181.47 for options granted on 24 October 2011, 3 October 2012, 19 April 2013 and 19 February 2014 respectively. The weighted average fair values have been determined using the Black Schole Formula considering the following parameters :

8. The Company has not entered into any forward exchange contract being derivative instruments.

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

35. In accordance with the directions of the Forward Markets Commission (FMC), a Special Audit of the Company was carried out for the period since inception of the Company to 30 September, 2013. The terms of reference, inter alia, included identifcation of related parties (as Defined by FMC in the terms of reference and a working defnition arrived at for the purpose of the review), review of non-trading transactions between the Company and significant related parties, and review of transactions of expenses incurred (individually) above Rs. 25 Lakhs. As per the Report, the working defnition of related parties is not as may be Defined under any provisions of any prevailing laws or guidance from any professional bodies in India.

The Final Report of the Special Audit was received on 21 April 2014 and was placed before the Board of the Company on 26 April 2014. The Management of the Company is making a detailed analysis of the observations in the Report, and after ascertaining the facts in each case is in the process of taking legal and other action, as appropriate. The Board of Directors has constituted a Negotiations Committee to discuss the contracts with entities related to the erstwhile promoter group, in particular, Financial Technologies (India) Limited. Pending the completion of the detailed analysis of the Report, ongoing internal enquiry and agreements / conclusions by the Negotiations Committee, the financial implications, if any, in this regard cannot at present be ascertained and, accordingly, no adjustments have been made in the financial statements.

The Company has currently identified amounts aggregating Rs. 119.70 millions incurred during 2013-14 where Corresponding services may not have been received. Accordingly, such expenses have been reversed and a provision for doubtful recoverable has been made in the books for an equivalent amount. While this does not have any impact on the net profit before tax for the year, the corresponding efect on provision for tax has been accounted for, resulting in a lower profit after tax for the year by Rs. 39.90 millions.

9. (i) As at March 31, 2014, Financial Technologies (India) Limited (FTIL) holds 26% of the equity shareholding in the Company. The FMC vide its Order dated December 17, 2013 has, inter alia, held that FTIL is not a ''ft and proper person'' to continue to be a shareholder of 2% or more of the paid-up equity capital of MCX as prescribed under the Guidelines issued by the Government of India for capital structure of commodity exchanges post five years of operations.

(ii) Further, FMC issued revised norms regarding Shareholding, Ownership, Net worth, Fit and Proper Criteria, etc. on May 6, 2014 which inter-alia state that ''In the event of any person ceasing to be a ''fit and proper person'' or being declared so by the Commission, such person shall forthwith divest his shareholding. Pending divestment of shares, the voting rights of such person shall stand extinguished and any corporate benefit in lieu of such holding shall be kept in abeyance/withheld by Exchange. The Exchange shall take necessary steps as it may deem ft so as to ensure that the shareholding of such person is divested forthwith. The Company vide letter dated 12 May 2014 intimated FTIL that voting rights stand extinguished and any corporate benefit in lieu of such holding shall be kept in abeyance/withheld. MCX has initiated necessary steps to amend its Articles of Association to comply with the new Guidelines.

(iii) The Securities and Exchange Board of India (SEBI) vide its Order dated March 19, 2014 has also held that FTIL is not a ''ft and proper person'', to acquire or hold any equity shares or any instrument that provides for entitlement for equity shares or rights over equity shares at any future date in a recognized Stock Exchange or Clearing Corporation, either directly or indirectly.

(iv) The FMC vide its letter dated May 8, 2014 observed inter alia, that as the Exchange (i.e. the Company) had not taken tangible and concrete measures to implement the directives of the FMC regarding their December 17, 2013 Order with respect to divestment of shareholding by FTIL in the Company and the fndings of the Special Audit and Oversight Committee of the Board of Directors and decided that till such time the directives are implemented, no new contracts will be approved for trading as well as the contract launch calendar for 2015 will be kept in abeyance. However, the approved contracts as per the contract launch calendar for 2014 shall be available for trading.

The ability of the Company to continue as a going concern beyond calendar year 2014, is therefore predicated on its compliance with the aforesaid FMC Order dated 17 December, 2013. The Company is taking steps for implementing the FMC directives and is confdent of being fully compliant before the end of the calendar year.

9. As at 31 March 2014 the Company has investments in 27,165,000 equity shares and 634,170,000 warrants of MCX Stock Exchange Limited (MCX-SX) and investments in 6,500,000 equity shares of MCX-SX Clearing Corporation Limited (MCX-SX CCL). Pursuant to the SEBI Order dated 19th March, 2014, the Company has been directed by SEBI to divest its holding in both MCX-SX and MCX-SX CCL. The Company vide its letter dated April 4, 2014 has represented to SEBI that FTIL and the Company no longer act in concert and therefore the Company should not be required to divest its holding in MCX-SX and MCX-SX CCL.

However, in view of the aforesaid directive of SEBI, investments in warrants of MCX-SX and equity shares of MCX- SX CCL have been reclassified from non-current investments to current investments at their carrying values. In accordance with Accounting Standard 13 on Accounting for Investments and the Company''s accounting policy, current investments are to be carried at the lower of cost and fair value in the balance sheet. Based on the latest available audited financial statements of these companies, the Management of the Company is of the view that the aggregate carrying amount of Rs. 1,375.71 millions represents the fair value of these investments as on the balance sheet date.

10. The Management undertook a review of the estimated useful lives of office Equipment which were depreciated in accordance with the rates as specified in Schedule XIV of the Companies Act, 1956 which represent useful life of approx. 21 years. Post the review, the revised estimated useful life has been worked out to be ranging from 12 - 180 months. This change in estimate has been given efect to prospectively in the financial statements for the year ended 31st March, 2014. Accordingly, the revised unamortized value as at 1st January, 2014 is being amortized over the revised remaining useful life. This change has the efect of increasing the depreciation charge for the year by Rs. 45.91 millions.

11. The previous year figures have also been reclassified / regrouped to conform to this year''s classification.

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Mar 31, 2013

1. GENERAL INFORMATION

Multi Commodity Exchange of India Limited (the ''Company'') is a state-of-the-art electronic commodity futures exchange.The Company is a demutualised Exchange and has permanent recognition from the Government of India to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions.

2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a. Contingent Liabilities:

in Rs. million

As at As at Particulars March 31,2013 March 31,2012

1. Claims against the Company not acknowledged as debts:

- Income tax demands against which the Company is in appeal (including interest thereon) 30.34 16.95

- Others 2.41 6.75

2. Bank guarantee given 36.50 36.50

b. Commitments:

1. Capital Commitments:

The estimated amount of capital contracts remaining to be executed and not provided for (net of advances) is Rs.5.26millions (As at March 31,2012:Rs.5.27 millions).

2. Other Commitments:

At March 31, 2013, the Company has commitments to pay for the services related to (i) installation and maintenance of core network equipment; and (ii) technology support and managed service based on long- term non-cancellable agreements. The cancellation of which will entail same monetary compensation as agreements will continue to remain valid.

3. SEGMENTREPORTING

Based on the risks and returns identified, organisational structure and the internal financial reporting system, the businesssegmentistheprimarysegmentforthe Company and accordingly "business of facilitating trading in commodities and incidental activities thereto"is considered as the only Primary Reportable business segment. Further, since the Company renders services mainly in the domestic market in India there is no geographical segment.

4. OPERATING LEASE

The Company has entered into operating lease agreements as lessee for various premises arranging from 18 to 60 months. The lease rentals recognised as an expense in the statement of profit and loss during the yearand the future minimum lease payments under non-cancellable operating leases are as follows:

5. RELATED PARTY INFORMATION

a. Names of related parties and nature of relationship:

i Company having significant influence over the Company:

Financial Technologies (India) Limited

ii. Subsidiary Companies:

a. Multi Commodity Exchange Clearing Corporation Limited (MCXCCL).

b. SME Exchange of India Limited (SME).

iii. AssociateCompany:

MCX-SX Clearing Corporation Limited (MCX-SXCCL).

iv. Key Managerial Personnel (KMP):

a. Lambertus Rutten - Managing Director and CEO (uptoJune 30,2012)

b. ShreekantJavalgekar - Managing Director and CEO (w.e.fJuly 1,2012)

v. Others:

A. Entities over which KMP are able to exercise significant influence and where transaction exists (enterprises that have a member of key management in common with the reporting enterprise):

a. Boursa Africa Limited (uptoJune 30,2012)

b. Bahrain Financial Exchange (BFX) (upto June 30,2012)

B. Controlled Employee Welfare Trust MCX ESOP Trust

6. EMPLOYEE BENEFIT PLANS

Defined contribution plans: Amounts recognised as expenses towards contributions to provident fund, employee state insurance corporation and otherfunds by the Companyare Rs.9.85 millions (Previous Year Rs.10.33 millions).

Post employment defined benefit plans

Gratuity Plan: The Company makes annual contributions to the Employee''s Group Gratuity Assurance Scheme administered by the Life Insurance Corporation of India (''LIC''), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to fifteen days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs on completion of five years of service.

7. The Company holds 27,165,000 Equity Shares of XM- each in MCX Stock Exchange Limited (MCX-SX). As per the approval received from SEBI to MCX-SX, the Company''s equity holding alongwith Financial Technologies (India) Limited (FTIL) shall not exceed 5% of the total paid up equity capital of MCX-SX. Considering the time available to adhere to the direction of SEBI as communicated by MCX-SX, the Company has classified such investments under Current Investments at this point of time till both the entities together reduce the percentage of holding to 5% in MCX- SX. The Company intends to hold the remaining shares of MCX-SX after bringing down the shareholding in MCX-SX to 5% put together with FTIL, on a long term basis and accordingly the said Investments will be reclassified under Non- Current Investments.

8. STOCK BASED COMPENSATION

a. During the yearended March 31,2009,the shareholders ofthe Company approved the''Employee StockOptions Plan 2008 (''ESOP-2008''). Under the said scheme, 1,625,000 Equity Shares of Rs.10 each (post consolidation and bonus) have been allotted to ESOPTrust who will administer the ESOP Scheme on behalf of the Company.

Out of which ESOPTrust has granted (a) 1,313,250 (post consolidation of shares and bonus issue) number of options convertible into 1,313,250 equityshares of Rs.10each to eligible employees on July 2,2008 and August 23,2008 in aggregate; (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs.10 each to eligible employees on October 24, 2011; and (c) 10,000 numbers of options convertible into 10,000 equity shares of Rs.10 each to an eligible employee on October 3,2012.

9. During the year ended March 31,2012, the Company has completed its Initial Public Offer (IPO) consisting of Offer for Sale of 6,427,378 equity shares at a offer price of Rs.1,032 per share. As per arrangement with Selling Stakeholders, all the IPO expenses paid by the Company were recoverable from the Selling Stakeholders. Accordingly, an IPO expense of Rs.29.86 millions has been shown as other current assets (Note 17). This include an amount of Rs.4.42 millions paid to the previous auditors for prospectus related reports/certificate relating to IPO.

10. The Company does not treat member''s margins and income thereon as part of SGF as contemplated under the FMC guidelines of SGF issued in 2006 and therefore credits the said income (amount unascertained) to statement of profit and loss. Representations have been made to FMCand a response is awaited.

11. The Forward Markets Commission (FMC) has vide letter no. 2/1/2008-MKT-ll dated February 16,2012, clarified that all penalties (net off administrative expenses) effective from April 2006 should be transferred to IPF by March 31,2012. Accordingly, such penalties for the period April 1, 2006 to March 31, 2011 amounting to Rs.142.28 million which was earlier credited to statement of profit and loss has during the previous year been credited to IPF A/c by debiting to statement of profit and loss as an exceptional item. Further all penalties (net off administrative expense) for the period April 1,2011 to March 31,2013 has been also transferred to Multi Commodity Exchange Investor (Client) Protection Fund''(''theTrust'') which was formed as per the revised guidelines of FMC on March 28,2012.

12. There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.This has been relied upon by the auditors.

13. The previous year figures have also been reclassified/regrouped to conform to this year''s classification.

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Mar 31, 2012

1 General Information

Multi Commodity Exchange of India Limited (the 'Company') is a state-of-the-art electronic commodity futures exchange.The Company is a demutualised Exchange and has permanent recognition from the Government of India to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions.

23 The estimated amount of capital contracts remaining to be executed and not provided for (net of advances) is Rs.5.27 million as at 31 March 2012 (previous year: Rs.2.71 million).

in Rs. million

as at as at Particulars 31 March 2012 31 March 2011

2 Contingent Liability

Contingent liabilities are in respect of:

(a) Other than Forward Market Commission (FMC) prescribed penalties recovered from members credited to income, pending response from FMC on representation made by the Company on FMC's Investor Protection Fund (IPF) Guidelines (Refer Note 38). - 142.28

(b) Claims against the Company not acknowledged as debts. 6.75 3.47

(c) Bank guarantee given. 36.50 -

(d) Income tax demands against which the Company is in appeal (Including Interest thereon). 16.95 21.39

3 Segment Reporting

PrimarySegment

The Company considers business segment (business of facilitating trading in commodities and incidental activities thereto) as its primary segment considering the risks and rewards of the services offered, nature of services, management structure and system of financialreporting.Therefore, the Company has only one reportable business segment, the results of which are disclosed in the f inancial statements.

Secondary Segment

Since business operations of the Company are concentrated in India,the Company is considered to operate only in domestic segment and therefore there is no reportable geographical segment.

4 Related party information:

The disclosures regarding related parties as required by Accounting Standard ('AS') 18 "Related Party disclosures" issued by the Companies (Accounting Standards) Rules, 2006 ('the Rules') are as under:

a. Names of related parties and nature of relationship:

(i) Company having significant influence over the Company:

a) Financial Technologies (India) Limited

(ii) Subsidiaries Companies:

a) Multi Commodity Exchange Clearing Corporation Limited (MCXCCL)

b) SME Exchange of India Limited (SME) [w.e.f. 14 September 2010]

(iii) Associate Companies:

a) MCX SX Clearing Corporation Limited (MCXSXCCL).

(iv) Jointly Controlled Entity (upto 25 June 2010):

a) Safal National Exchange of India Limited (SAFAL) - A joint venture company in which the Company holds 30% share capital.

(v) Key Managerial Personnel (KMP):

a) Lambertus Rutten – Managing Director and CEO

(vi) Others:

(A) Entities over which KMP are able to exercise significant influence and where transaction exists (enterprises that have a member of key management in common with the reporting enterprise)

a) Bourse Africa Limited.

b) Bahrain Financial Exchange (BFX).

(B) Controlled Employee Welfare Trust a) MCX ESOP Trust

5 MCX-SX capital reduction and issue of warrants to MCX:

Consequent to capital reduction andissue of warrants to MCX against its holding of equity shares of face valueof 617,135,000 in MCX-SX, in compliance with a Court sanctioned scheme in March,2010,the Company,based on counsel's opinion continues with its stand of no tax liability arising consequent to the same and there fore no taxliability has been determined or recognized in the financial statements.

The Company has investments aggregating Rs.1,310.71 million in equity shares and warrants of MCX Stock exchange Limited (MCX-SX). During the current year, MCX-SX has started generating revenue on all the trade executed on the trading platform of the exchange. Hence, the investments in MCX-SXare,in the opinion of the management,considered to be good and valuable.

6 Stock based compensation:

a) During the year ended March 31, 2009, the shareholders of the Company approved the 'Employee Stock Options Plan 2008 ('ESOP – 2008'). Under the said scheme, 2,600,000 (1,625,000 Equity Shares of Rs.10 each post consolidation and bonus) number of shares have been allotted to ESOP Trust who will administer the ESOP Scheme on behalf of the Company.

Out of which ESOP Trust has granted (a) 2,101,200 (1,313,250 equity shares of Rs.10 each post consolidation and bonus) numbers of options convertible into 2,101,200 equity shares of Rs.5 each toeligible employees on02 July2008 and 23 August 2008 in aggregate; and (b) 331,750 (including the lapsed options available for reissuance) numbers of options convertible into 331,750 equity shares of Rs.10 each to eligible employees on 24 October 2011.

7 During the year ended 31 March 2012, the Company has completed its Initial Public Offer (IPO) consisting of Offer for Sale of 6,427,378 equity shares at a offer price of Rs.1,032 per share. As per arrangement with Selling Stakeholders, all the IPO expenses paid by the Company were recoverable from the Selling Stakeholders. Accordingly, an IPO expense of Rs.29.86 million has been shown as Short- terms loans and advances (Note 16). This include an amount of Rs.4.42 million paid to the auditors for prospectus related reports/ certificate relatingto IPO.

8 The Company does not treat member's margins and income thereon as part of SGF as contemplated under the FMC guidelines of SGF issued in 2006 and therefore credits the said income (amount unascertained) to statement of profit and loss. Representations have been made to FM Canda response is awaited.

9 During the year ended 31 March 2012, the Company received revised guidelines for Investor Protection Fund ('IPF') from the Forward Markets Commission ('FMC') (constituted under Forward Contracts (Regulation) Act, 1952), directing the National Commodity Exchanges (the'Exchanges')tocreateaIPFTrustby31March 2012toadminister'Investor ProtectionFund'.The Exchanges,inthe interim,are required to keep all the penalties (net of recoveries towards administrative expenses) collected by the Company, in a separate bank account till IPF trustisset up.

With regardtoother than FMC's prescribed penalties, the Company had representedtoFMC that the same should notbeapart ofIPF and was crediting such penalties to Statement of profit and loss. FMC has vide letter no. 2/1/2008-MKT-II dated 16 February 2012, clarified that such penalties (net off administrative expenses) effective from April 2006 should be transferred to IPF by 31 March 2012. Accordingly, such penalties for the period 01 April 2006 to 31 March 2011 amounting to Rs.142.28 million which was earlier credited to statement of profit and loss has this year been credited to IPF A/c by debiting to statement of profit and loss as an exceptional item. Further such penalties (net off administrative expense) recognized in the statement of profit and loss for the period 01 April 2011 to 31 December 2011 amounting to Rs. 38.85 million have been reversed, and transferred to IPF. Effective 1 January 2012, such penalties (net off administrative expense) are directly transferred to IPF.

Pursuant to the revised guidelines, the Company has 'Multi Commodity Exchange Investor (Client) Protection Fund' ('the Trust') on 28 March 2012. As at 31 March 2012 the balance transferable to the Trust was Rs.327.40 million. As at 31 March 2012, the Company has earmarked fixed deposit of Rs.317.96 million with the banks against IPF. Subsequent to year end, the Company has earmarked further bank deposit aggregating Rs.9.44 million against IPF. The said earmarked deposits will be transferred to theTrust, once the bank account of the trustisopened.

10 Disclosure under Micro,Small and Medium Enterprises Development Act,2006

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Smalland Mediumenterprises. On the basis of the informationand recordsavailable with the management and confirmation sought from suppliers on registration with specified authority under MSMED, principal amount, interest accrued and remaining unpaid and interest paid during the year to such enterprise is NIL.

11 The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended31March 2012 are preparedasper Revised ScheduleVI. Accordingly, the previous year figures have also been reclassified / regrouped to conform to this year's classification.

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Mar 31, 2011

1 (a) MCX Stock Exchange Limited is a recognized stock exchange under Section 4 of the Securities Contracts Regulation Act, 1956. The company suffered a loss of Rs. 57.80 crore for the year and cumulative losses as on March 31, 2011 are Rs. 143.88 crore. The CompanyRs.s income mainly consists of interest on fixed deposits and investments. The Company is not able to charge transaction fees in respect of currency futures trading in its Currency Derivatives Segment (CD Segment), in view of predatory zero pricing by its main competitor, National Stock Exchange of India Ltd (NSE). Further, the CompanyRs.s application seeking regulatory approvals to commence operations in other segments and products was rejected by an order dated September 23, 2010 passed by Securities and Exchange Board of India (SEBI).

The Company continues to have positive networth and the present networth is in excess of the regulatory minimum requirement laid down by Reserve Bank of India (RBI) and SEBI which is Rs. 100 crore. The Company has challenged the abovementioned order dated September 23, 2010 of SEBI before the HonRs.ble High Court of Bombay by way of a writ petition and the matter is pending for admission. The Company has been advised that it has all reasons to succeed in the matter. Further, the Company had approached the Com petition Commission of India (CCI) for relief against anticompetitive practices of a main competitor. The CCI had by an order dated May 25, 2011 found the competitor in contravention of several clauses of Section 4 of the Competition Act, 2002. CCI passed a further order dated June 23, 2011 under Section 27 of the Competition Act, 2002 inter alia directing NSE to cease and desist from unfair pricing, exclusionary conduct and unfairly using its dominant position in other market/s to protect the relevant CD market with immediate effect. The CCI also directed NSE to modify its zero price policy and ensuring levy of appropriate transaction costs within 60 days. It is therefore expected that the predatory practices of NSE would come to an end in the near future, and that conditions of free and fair competition would be restored in the stock exchange services market. The Company would then be able to charge transaction fees and also open up its other operational revenue streams. This would result in consequential improvement in the revenue earning model of the Company, which would improve the CompanyRs.s financial performance and net worth position significantly. In view of the said orders of CCI, the Company also has a right to seek compensation for losses and damages suffered by it due to the unfair and anticompetitive practices of NSE under section 53N of the Competition Act, 2002. In light thereof, the Company proposes to recover the losses suffered by it so far on account of such practices, which will further boost its financial position and networth. In view of the above, the financial statements have been prepared on a going concern basis and no provision has been considered necessary for impairment of fixed assets and capital work in progress.

(b) The Company has unutilized service tax credit of Rs. 14.98 crore as at March 31, 2011 (previous year Rs. 9.52 crore). As mentioned in note 1 (a) above the Company expects improved revenue earnings in the future years and hence is of the view that the unutilized service tax credit will be fully utilized and the same is considered as good for recovery.

2 Loan to ESOP Trust

The CompanyRs.s ESOP is administered through an ESOP Trust, which subscribes to shares of the Company and holds them until issuance thereof based on vesting and exercise of options by employees. At the time of formation of the trust the Company has provided an interest free loan amounting to Rs. 6,000,000 to the Trust to subscribe to 5,433,000 shares issued at Rs. 1 per share and were allotted on November 20, 2009.

3 Stock based compensation

The Company with the authorization of its shareholders, framed the Rs.MCX Stock Exchange Employees Stock Option Scheme, 2009, which contemplated issue of ESOPs through the Trust route. Accordingly, Rs.MCX Stock Exchange ESOP TrustRs. was formed on November 13, 2009, as a trust.

As per the Guidance Note on Accounting for Employee Share Based payments issued by the Institute of Chartered Accountants of India, the amount of loan equivalent to the face value of securities subscribed [Rs.5,433,000] has been deducted from share capital account and the balance part of the loan representing the amount of [Rs. 567,000] has been added to Advances recoverable in cash or in kind or for value to be received.

The balance of such loan as at March 31, 2011 is Rs. 6,000,000. The repayment of the loan is primarily dependent upon the exercise of options by the employees, the price at which fresh or reissued options are granted and dividend income earned thereon till exercise of options. The Company believes that the options would be exercised by the employees and the Trust would be able to repay the loan based on the price received by the Trust there against. On that basis, the loan, to the Trust is considered as good of recovery.

Under the Scheme, the Compensation Committee of the Company shall decide, the options to be granted, the vesting schedule of the options to be granted and other incidental and consequential matters. The Trust shall be obliged to act on the instructions of the Compensation Committee.

Each option entitles the holder to exercise the right to apply and seek allotment of one equity share of Rs. 1 each. Exercise period for each option is as stated above from the date of vesting.

The particulars of number of options granted and lapsed under the Scheme are tabulated below:

The intrinsic value per option under the Scheme is NIL. The estimated fair value per option for ESOP 2009 is Rs. 1.15 of which premium amount is Rs. 0.15 per option for options granted on November 27, 2009. The fair values have been determined using the Black-Scholes Model considering the following parameters:

The loss after tax of the Company for the year would have been higher by Rs. 83,585 (Previous Year Rs. 35,157) had the Company accounted the employee share-based payment using the fair value method. There is no material impact on the earnings per share.

4 Non-refundable interest free deposit (warrants):

A total of 1,196,630,000 warrants were allotted to certain shareholders under the Scheme of Capital Reduction cum Arrangement implemented from March 19, 2010 post sanction of the HonRs.ble High Court of Bombay under Sections 100-104 and 391-393 of the Companies Act, 1956. Under the Scheme, an amount of Rs. 1 was required to be maintained against each warrant as non-refundable interest free deposit. Accordingly, the Com pany holds an amount of Rs. 1,196,630,000 as interest free non- refundable deposit. Each warrant holder can exercise in one or more installments, its option to subscribe to the fully paid up equity shares of the Company of the face value ofRs. 1 each subject to conditions. The exercise of warrants would always be subject to the Securities Contracts (Regulation) (Manner of Increasing and maintaining Public Shareholding in Recognised Stock Exchange) Regulation, 2006 and other conditions. Upon exercise of the option, the proportionate non-refundable interest free deposit will be adjusted against the moneys receivable in respect of the equity shares so issued. The Equity Shares arising out of the exercise of Warrants will rank pari passu with the existing equity shares in all respects. The warrants do not carry any voting rights.

5 Managerial remuneration

Managerial remuneration has been paid to MD and CEO-Currency Derivative Segment (Whole- time Director) as below:

*Excludes gratuity and long term compensated absences which are actuarially valued and where separate amounts are not identifiable.

During the months of April and May, 2010 the Company paid an amount of Rs. 4.85 lakhs to the Managing Director which was in excess of the remuneration approved by the Central Government. An application made by the Company for waiver of recovery of the said amount was rejected by the Central Government due to non-submission of a Board resolution. The Company now intends to make a fresh application with the Board resolution in this regard. The Company has in the meantime debited the said amount to the account of the Managing Director and disclosed under the head Rs.Loans and AdvancesRs. in Schedule 10 to the Balance Sheet which has since been recovered. For the period from June, 2010 to March, 2011 the Company has, on an application made by it, received a letter from the Central Government stating that approval is no longer necessary for unlisted companies in view of amendments to Schedule XIII of the Companies Act, 1956.

6 Employee Benefits

The disclosures as per Accounting Standard - 15 (AS-15) "Employee Benefits" are given below:

Defined Contribution Plan:

Provident Fund - The Company makes

contribution towards provident fund as a specified percentage of the payroll cost to Regional Provident Fund Commissioner managed by the EmployeesRs. Provident Fund Organization, India. There are no other obligations other than the contribution payable to said fund.

Defined benefit plan:

Gratuity: The gratuity is payable to all members at the rate of 15 days salary for each year of service.

The most recent actuarial valuation of the present value of the defined benefit obligation for gratuity was carried out as at March 31, 2011 by an actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following table sets out the status of the gratuity plan and the amounts recognized in the CompanyRs.s financial statements as at March 31, 2011.

7 Segment reporting

Primary segment

The Company considers business segment (business of facilitating trading in currency and incidental activities thereto) as its primary segment considering the risks and rewards of the services offered, nature of services, management structure and system of financial reporting. In the opinion of the management, the Company has only one reportable business segment, in accordance with requirements of AS-17 "Segment Reporting", the results of which are disclosed in the financial statements.

Secondary segment

The Company operates only in India and has no geographical segment. On that basis, no secondary segment information is furnished

8 Related party information

a) Names of related parties and nature of relationship:

The disclosures regarding related parties as required by Accounting Standard (Rs.ASRs.) 18 "Related Party disclosures" issued by the Companies (Accounting Standards) Rules, 2006 (Rs.the RulesRs.) are as under:

I. Subsidiary

- MCX-SX Clearing Corporation Limited (MCX-SX Clear)

II. Key Management Personnel (KMP)

- Mr. Joseph Massey (MD & CEO)

- Mr. U. Venkataraman (CEO of Currency derivative segment and Whole time director)

III. Company whose control exists

- Multi Commodity Exchange of India Limited (MCX), Holding company (upto May 20, 2009)

IV. Companies having significant influence over the Company

- Financial Technologies (India) Limited (FTIL), (upto March 18, 2010)

- Multi Commodity Exchange of India Limited (MCX), (upto March 18, 2010)

V. Others

- MCX-SX ESOP Trust

Notes:

(i) Related party relationship is as identified by the Company and relied upon by the auditors.

(ii) There are no amounts written off or written back in the year in respect of debts due from or to related parties.

(iii) Figures in bracket represent previous yearRs.s amounts.

(iv)The transactions with the related parties are disclosed only till the relation exists

9 Operating lease

The Company has entered into operating lease agreements for its office premises.

a) The minimum lease rentals on operating leases recognized in the Profit & Loss Account and the future minimum lease payments under operating leases are as follows:

b) Total future minimum sub-lease payments expected to be received under subleases is Rs.13,55,130 (Previous Year Rs. 46,07,442)

c) Lease payments recognised in Profit & Loss Account is Rs. 68,075,491 (Previous year Rs. 50,123,142)

d) Sub-lease payment received and recognised in Profit & Loss Account is Rs. 3,252,312 (Previous Year Rs. 3,252,312)

The effects of conversion of warrants into equity shares and the shares allotted to the ESOP trust pursuant to the employee share based payment plan are anti-dilutive and accordingly not considered for the computation of diluted earnings per share.

In the absence of virtual certainty that surplus taxable income will be available against which the Deferred Tax Asset can be realized, the same has not been recognized in the books of account in line with AS-22 dealing with "Accounting for Taxes on Income"

10 Dues to Micro, Small and Medium Enterprises

As per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 the amounts due to the Micro, Small and Medium Enterprises on the basis of the information available with the Company regarding the status of suppliers are as under:

11 Investor Protection Fund

Investor Protection Fund of Rs. 2,500,000 was established by the Company based on the Rs.Comprehensive guidelines for Investor Protection Fund at Stock ExchangesRs. dated October 28, 2004 issued by SEBI and in accordance with SEBI approval letter dated September 18, 2008.

The Office of Charity Commissioner had on March 17, 2010, granted registration to the MCX Stock Exchange Investor Protection Fund Currency Derivatives Segment Trust under the provisions of the Bombay Public Trust Act, 1950. On June 22, 2010 the Company has transferred the entire amount to the Trust.

12 Investor Service Fund

Investor Service Fund of Rs. 1,000,000 was established by the Company in accordance with SEBI approval letter dated September 18, 2008. The fund is maintained to provide services to investors which include maintenance of investor grievance cell, education and awareness about securities market, price dissemination and other services that are in the interest of the investor. The balance amounting to Rs. 1,188,410 as at March 31, 2011 represents the initial amount of Rs. 1,000,000 and interest earned thereon.

13 The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

14 Disclosures under Part II of Schedule VI to the Companies Act, 1956, have been made to the extent applicable to the Company.

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Mar 31, 2010

1. The Cash Flow statement has been prepared under the "Indirect Method" as set out in Accounting Standard (AS 3) "Cash Flow Statement" issued by the Companies (Accounting Standard) Rules, 2006

2. Cash and Cash Equivalents included in the cash flow statement comprises of :-

3. Fixed Deposits with bank are deposits with the maturity period of more than three months, hence classified and grouped in investing activity and not included in cash and cash equivalents.

1 Background

MCX Stock Exchange Limited ('the Company') was incorporated on 14 August 2008 and obtained certificate of commencement of business on 19 August 2008. Pursuant to receipt of Securities Exchange Board of India ('SEBI') approval dated 18 September 2008, the Company launched operations on 7 October 2008 as an exchange facilitating trading in currency futures.

*Excludes gratuity and long term compensated absences which are actuarially valued and where separate amounts are not identifiable.

Above remuneration was paid to Mr. U.Venkatraman (CEO of Currency derivative segment and Whole time director) and Mr. Joseph Massey (MD & CEO with effect from 1 June 2009).

As the remuneration payable to them was not falling within the limits prescribed under section 198, 269 & 309 read with Part II of Schedule XIII of the Companies Act, an application was made to Central Government seeking approval for payment of remuneration to them. Central Government vide their letter dated 17 December 2009 and letter dated 26 March 2010, approved the appointment and remuneration of Mr.U.Venkatraman (CEO of Currency derivative segment and Whole time director) and Mr. Joseph Massey (MD & CEO) respectively.

2.1 Deferred tax assets

The Company had not recognized deferred tax assets as there is no virtually certainty of realization of such assets and reversal of the same.

2.2 Segment reporting

Primary segment

The Company considers business segment (business of facilitating trading in currency and incidental activities thereto) as its primary segment considering the risks and rewards of the services offered, nature of services, management structure and system of financial reporting. In the opinion of the management, the Company has only one reportable business segment, the results of which are disclosed in the financial statements.

Secondary segment

The Company operates only in India and has no geographical segment. On that basis, no secondary segment information is furnished

2.3 Operating lease

The Company has entered into operating lease agreements for its office premises. a) The minimum lease rentals on non-cancellable operation leases recognized in the Profit and loss account and the future minimum lease payments under non cancellable operating leases are as follows

2.4 Related party information

a) Names of related parties and nature of relationship:

The disclosures regarding related parties as required by Accounting Standard ('AS') 18 “Related Party disclosures” issued by the Companies (Accounting Standards) Rules, 2006 ('the Rules') are as under:

(i) Company whose control exists

- Multi Commodity Exchange of India Limited (MCX), Holding company (upto 20 May 2009)

(ii) Companies having significant influence over the Company

- Financial Technologies (India) Limited (FTIL), (upto 18 March 2010)

- Multi Commodity Exchange of India Limited (MCX), (from 21 May 2009 to 18 March 2010)

(iii) Subsidiary

- MCX-SX Clearing Corporation Limited (MCX-SX Clear)

(iv) Fellow Subsidiary

- MCX Clearing Corporation Limited (MCX- Clear) (upto 20 May 2009)

(v) Key Management Personnel (KMP)

- Mr. U. Venkatraman (CEO of Currency derivative segment and Whole time director)

- Mr. Joseph Massey (MD & CEO with effect from 1 June 2009)

(vi) Others

- MCX-SX ESOP Trust

Notes:

(i) Related party relationship is as identified by the Company and relied upon by the auditors.

(ii) There are no amounts written off or written back in the year in respect of debts due from or to related parties.

(iii) Previous year's figures are given in brackets.

2.5 Dues to Micro, Small and Medium Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management and confirmation sought from suppliers on registration with specified authority under MSMED, principal amount, interest accrued and remaining unpaid and interest paid during the year to such enterprise is NIL.

2.6 Transfer of following assets / liabilities to MCX SX Clearing Corporation Limited

a) Settlement Guarantee Fund

The Settlement Guarantee Fund of Rs. 25,000,000 was established by the Company based on the 'Guidelines for Settlement Guarantee Fund at Stock Exchanges' dated

9 June 1997 issued by SEBI and in accordance with SEBI approval letter dated 18 September 2008. The amount was set aside by the Company in a bank fixed deposit of an equivalent amount. The fund balance which was maintained in the form of fixed deposits was transferable to MCX SX Clearing Corporation Limited ('MCX-SX Clear') on 16 February 2009, date of launch of operations of MCX-SX Clear.

Accordingly, the settlement guarantee fund balance maintained in the fixed deposits and interest accrued thereon was transferred to MCX-SX Clear on 2 April 2009.

b) Member's security deposit

The Company collected security deposits for clearing activities from its members and invested these deposits in liquid funds. On 16 February 2009, MCX-SX Clear started its operations; as a result these investments became due for transfer on that date.

Member's security deposits amounting to Rs.170,000,000 and the income earned on the related investments upto the date of transfer amounting to Rs.1,820,812 was transferred during the year.

c) Security deposit from settlement bankers

Security deposit from settlement banker aggregating to Rs. 10,000,000 was transferrable to MCX-SX Clear as at 31 March 2010. The same has been transferred on 14 July 2010.

2.7 Investor Protection Fund

Investor Protection Fund of Rs. 2,500,000 was established by the Company based on the 'Comprehensive guidelines for Investor Protection Fund at Stock Exchanges' dated 28 October 2004 issued by SEBI and in accordance with SEBI approval letter dated 18 September 2008.

The Office of Charity Commissioner had on 17 March 2010, granted registration to the MCX Stock Exchange Investor Protection Fund Currency Derivatives Segment Trust under the provisions of the Bombay Public Trust Act, 1950. The moneys in the IPF are maintained in a separate account with State Bank of India ('SBI'), standing in the Company's name, held on behalf of the Trust and was transferred to the Trust on 22 June 2010.

2.8 Investor Service Fund

Investor Service Fund of Rs. 1,000,000 was established by the Company in accordance with SEBI approval letter dated 18 September 2008. The fund is maintained to provide services to investors which include maintenance of investor grievance cell, education and awareness about securities market, price dissemination and other services that are in the interest of the investor.

2.9 Scheme of reduction cum arrangement:

During the year, the Company implemented a Scheme of Reduction cum Arrangement (“the scheme”) with the unanimous approval of its shareholders and the sanction of the Hon'ble High Court of Bombay under sections 100-104 and 391-393 of the Companies Act, 1956. The Scheme was sanctioned by the Hon'ble High Court by an order dated March 12, 2010, which was registered by the Registrar of Companies, Maharashtra, Mumbai on March 19, 2010.

The Scheme was formulated and implemented in order to ensure compliance with the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006 (“MIMPS Regulations”) as stipulated by SEBI.

Pursuant to the reduction under the sanctioned scheme, 1,196,630,000 equity shares of Re. 1 each held by certain shareholders were reduced and cancelled on 19 March, 2010 to achieve the aforesaid objective. A consideration of Re.1 per share aggregating Rs. 1,196,630,000 (being the paid up value thereof per share) was payable on reduction by the company to the reducing shareholders. In terms of the scheme, the said consideration of Re. 1 per share payable to the shareholders whose shares were cancelled and adjusted against the non refundable interest free deposit to be paid by the said shareholders towards the warrants which were subscribed by them under the scheme. Thus, the paid up equity share capital of the Company was reduced from Rs. 1,739,933,000 divided into an equal number of equity shares of Re. 1 each to Rs. 543,303,000 divided into an equal number of equity shares of Re. 1 each.

Pursuant to the arrangement, 1,196,630,000 warrants were subscribed to by the said shareholders by paying a non refundable interest free deposit of Re. 1 per warrant. The amount of Re. 1 per reduced and cancelled share as aforesaid was adjusted against the non refundable interest free deposit receivable by the Company from the said shareholders and required to be maintained in respect of the said warrants. Each warrant holder can exercise in one or more installments, its option to subscribe to the fully paid up equity shares of the Company of the face value of Re. 1 each subject to conditions. Upon exercise of the option, the proportionate non refundable interest free deposit will be adjusted against the moneys receivable in respect of the equity shares so issued.

In terms of the scheme, the exercise of warrants would always be subject to the MIMPS Regulations and other conditions. The warrants do not carry any voting or dividend rights.

2.10 Stock based compensation:

The Company with the authorization of its shareholders, framed the 'MCX Stock Exchange Employees Stock Option Scheme, 2009', which contemplated issue of ESOPs through the Trust route. Accordingly, 'MCX Stock Exchange ESOP Trust' was formed on November 13, 2009, as a trust.

Under the Scheme, the Compensation Committee of the Company shall decide, the options to be granted, the vesting schedule of the options to be granted and other incidental and consequential matters. The Trust shall be obliged to act on the instructions of the Compensation Committee.

2.11 Stock based compensation (Continued)

An allotment of 5,433,000 equity shares of Re. 1 each was made by the Company to the Trust on November 20, 2009. On November 27, 2009 a total of 1,125,000 stock options have been granted under the Scheme. None of the options have vested so far. Details of the Options granted by the ESOP Trust is as under:

Each option entitles the holder to exercise the right to apply and seek allotment of one equity share of Re. 1 each. Exercise period for each option is as stated above from date of vesting.

The intrinsic value per option under the Scheme is NIL. The estimated fair value per option for ESOP 2009 is Rs. 1.15 of which premium amount is Re. 0.15 per option for options granted on November 27, 2009. The fair values have been determined using the Black-Scholes Model considering the following parameters:-

The loss after tax of the Company for the year would have been higher by Rs. 35,157,, had the Company accounted the employee share-based payment using the fair value method. There is no material impact on the earnings per share.

2.12 Loan to ESOP Trust:

The Company's ESOP is administered through an ESOP Trust, which subscribes to shares of the Company and holds them until issuance thereof based on vesting and exercise of options by employees. At the time of formation of the trust the Company has provided an interest free loan amounting to Rs 6,000,000 to the Trust to subscribe to 5,433,000 shares issued at Re 1 per share. As per the Guidance Note on Accounting for Employee Share Based payments issued by the Institute of Chartered Accountants of India, the amount of loan equivalent to the face value of securities subscribed [Rs 5,433,000] has been deducted from share capital account and the balance part of the loan representing the amount of [Rs 577,000] has been added to cash and bank balance.

The balance of such loan as at 31 March 2010 is Rs. 6,000,000. The repayment of the loan is primarily dependent upon the exercise of options by the employees, the price at which fresh or reissued options are granted and dividend income earned thereon till exercise of options. The Company believes that the options would be exercised by the employees and the Trust would be able to repay the loan based on the price received by the Trust there against. On that basis, the loan, to the Trust is considered as good of recovery.

2.13 Disclosures under Part II of Schedule VI to the Companies Act, 1956

Disclosures under Part II of Schedule VI to the Act, have been made to the extent applicable to the Company.

2.14 Prior year comparatives

Previous year's figures have been regrouped / rearranged wherever necessary to conform to current year's presentation.

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Mar 31, 2009

1 Background

MCX Stock Exchange Limited ('the Company') was incorporated on 14 August 2008 and obtained certificate of commencement of business on 19 August 2008. Pursuant to receipt of SEBI approval dated 18 September 2008, the Company launched operations on 7 October 2008 as an exchange facilitating trading in currency futures.

The principal shareholders of the Company as at 31 March 2009 are Multi Commodity Exchange of India Limited (holding 51% stake) ('the Holding Company') and Financial Technologies India Limited (holding 49% stake).

2.1 Segment reporting

a. The Company considers business segment (business of facilitating trading in currency and incidental activities thereto) as its primary segment considering the risks and rewards of the services offered, nature of services, management structure and system of financial reporting. In the opinion of the management, the Company has only one reportable business segment, the results of which are disclosed in the financial statements.

b. During the period ended 31 March 2009, the Company had no reportable geographical segment and on that basis, no secondary segment information is furnished.

2.2 Operating lease

The Company has taken the office premise on lease for a tenure of 36 months. The lease is cancellable on prior notice from either of the parties. The total lease payments recognized in the profit and loss account amount to Rs. 17,016,804. The lease agreement does n't stipulate increase in rent in a staggered manner over the lease tenure. There are no provisions relating to contingent rent.

Further, the company has sub-let part of the premises to its subsidiary and has recovered Rs. 454,937 which is classified as 'Other income' under Schedule 11.

2.3 Related party information

a) Names of related parties and nature of relationship:

(i) Company where control exists

- Multi Commodity Exchange of India Limited (MCX), Holding company

(ii) Company having significant influence

- Financial Technologies (India) Limited (FTIL)

(iii) Subsidiary

- MCX-SX Clearing Corporation Limited (MCX-SX Clear)

(iv) Fellow Subsidiary

- MCX Clearing Corporation Limited (MCX- Clear)

(v) Key Management Personnel (KMP)

- Mr. U. Venkatraman (CEO of Currency derivative segment from 13 November 2008 till 16 February 2009; Whole time director effective 16 February 2009)

* Includes Rs. 166,227,195 towards Members Security Deposit and Rs. 25,339,041 towards Settlement Guarantee Fund transferable to MCX-SX Clearing Corporation Limited (Refer Note 13.11 of Schedule 13).

**Represents amount held in trust by the director (Refer note 13.7(b) of Schedule 13)

Discount rate:

The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

Salary escalation rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

2.4 Dues to Micro, Small and Medium Enterprises

On the basis of the information and records available with the management, there are no dues to Micro, Small and Medium Enterprises, who are registered with the competent authorities.

a. Information relating to managerial remuneration does not include provision for gratuity and leave encashment, which is provided on an overall basis.

b. Mr. U. Venkataraman was appointed as Whole-time Director of the Company w.e.f. 16 February 2009. The appointment and remuneration were approved in the Remuneration Committee of the Board held on 24 January 2009 and were subsequently approved by the shareholders in the Extra Ordinary General Meeting held on 31 March 2009. Subsequently, the Company has made an application to the Central Government for the approval of his remuneration, which is awaited.

Pending receipt of his approval as above, the amount of remuneration paid to him for the period 16 February 2009 to 31 March 2009 of Rs. 881,741 has been carried forward under 'Advances recoverable in cash or kind' as the same is held in trust u/s 309 of the Companies Act, 1956.

2.5 Preliminary and Pre-operative Expenditure

The Company was incorporated on 14 August 2008 and launched operations on 7 October 2008. Expenses incurred prior to commencement of operations have been accounted as preliminary and pre-operative expenses and consist of the following:

2.6 Transfer pricing

The Company has developed a system of maintaining of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Management is of the opinion that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

2.7 Transfer of certain assets / liabilities to MCX-SX Clearing Corporation Limited ('the subsidiary')

a) Settlement Guarantee Fund

The Settlement Guarantee Fund of Rs. 25,000,000 was established by the Company based on the 'Guidelines for Settlement Guarantee Fund at Stock Exchanges' dated 9 June 1997 issued by SEBI and in accordance with SEBI approval letter dated 18 September 2008. The amount was set aside by the Company in a bank fixed deposit of an equivalent amount. The fund balance and the related deposit were transferable to the subsidiary on 16 February 2009, date of launch of operations of the subsidiary.

Accordingly, the settlement guarantee fund balance of Rs. 25,000,000, the related fixed deposit of equivalent amount and the interest accrued on the deposit for the period 16 February 2009 till 31 March 2009 of Rs. 339,041 have been reflected as transferable to MCX-SX Clearing Corporation Limited as at 31 March 2009.

b) Member's security deposit

The Company collected security deposits for clearing activities from members which were transferable to its subsidiary as on 16 February 2009, date of launch of operations of the subsidiary. The amounts collected were invested in liquid funds.

Accordingly, the member's security deposit amounting to Rs. 166,227,195 and the income earned on the related investments for the period 16 February 2009 till 31 March 2009 of Rs. 1,227,195 have been reflected as transferable to MCX-SX Clearing Corporation Limited as at 31 March 2009.

2.8 Investor Protection Fund

Investor Protection Fund of Rs. 2,500,000 was established by the Company based on the 'Comprehensive guidelines for Investor Protection Fund at Stock Exchanges' dated 28 October 2004 issued by SEBI and in accordance with SEBI approval letter dated 18 September 2008. The Company is in the process of forming an “MCX Stock Exchange Investor Protection Fund - Currency Derivatives Segment Trust” and registering it under the provisions of the Bombay Public Trusts Act, 1950. Pending the same, the funds contributed and collected towards the Investor Protection Fund have been kept in a separate bank account maintained with the State Bank of India.

2.9 Investor Service Fund

Investor Service Fund of Rs. 1,000,000 was established by the Company in accordance with SEBI approval letter dated 18 September 2008. The fund is maintained to provide services to investors which include maintenance of investor grievance cell, education and awareness about securities market, price dissemination and other services that are in the interest of the investor.

2.10 Disclosures under Part II of Schedule VI to the Companies Act, 1956

Disclosures under Part II of Schedule VI to the Companies Act, 1956, have been made to the extent applicable to the Company.

2.11 Prior year comparatives

Prior year comparatives are not presented as 31 March 2009 is the first financial year end after incorporation.