MCX

METAL & ENERGY

Trade with Trust

August 31, 2016

MCX/SEC/1107
The Dy. General Manager
Corporate Relations & Service Dept.,
BSE Limited,
Phirojsha Jeejibhoy Towers,
Dalal Street, Mumbai 400 001.
Scrip Code: 534091, Scrip Name: MCX

Sub. : Un-Audited Financial Results (Standalone) for the Quarter ended June 30, 2016
Board Meeting Wednesday, August 31, 2016
Dear Sir,
Pursuant to Regulation 30 read with Regulation 33 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and Circular No. CIR/CFD/FAC/62/2016 dated July 05, 2016,
please be informed that the Board of Directors of the Company at its meeting held today, interalia, has approved the Un-audited Financial Results (Standalone) of the Company for the quarter
ended June 30, 2016. Please find enclosed herewith certified copy of the Un-audited Standalone
Financial Results and the Limited Review Report issued by the statutory auditors of the
Company:
Kindly take the above information on record and acknowledge receipt of the same.
Thanking you,
Yours faithfully,
For Multi Commodity Exchange of India Limited
)
A jaxlix
Company Secretary & CCO
Encl: a/a

,MULTI COMMODITY EXCHANGE OF INDIA LTD.

EXCHANGE SQUARE, SUREN ROAD, ANDHERI (EAST), MUMBAI 400 093, INDIA. TEL: +91-22-6731 8888, FAX: +91-22-6649 4151, www.mcxindia.com
CIN: L51909MH2002PLC135594, info@mcxindia.com

Multi Commodity Exchange of India Limited

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2016
in Lakh, except per share data)
Quarter ended
Sr No

Particulars
30-06-16
Unaudited

30-06-15
Unaudited

5,823.33
475.14

5,177.60
443.70

6,298.47

5,621.30

2 Expenses :
a)
Employee benefits expense
b)
Depreciation and amortisation expense
c) Software support charges
d)
Advertisement expenses
e)
Other expenses
Total Expenses

1,432.68
492.35
1,057.42
178.15
1,411.29
4,571.89

920.42
626.40
907.50
360.74
1,546.96
4,362.02

3 Profit from Operations before other income, finance costs and

exceptional items(1-2)

1,726.58

1,259.28

4 Other Income

3,080.89

1,996.03

5 Profit from ordinary activities before finance costs and

exceptional items(3 + 4)

4,807.47

3,255.31

5.90

10.78

4,801.57

3,244.53

4,801.57

3,244.53

10 Tax Expenses

1,520.67

1,121.70

11 Net Profit after tax (9-10)

3,280.90

2,122.83

1 Income from Operations

(a) Income from Operations
(b) Other Operating Income
Total Income from Operations

6 Finance costs
7 Profit from ordinary activities after finance costs but before
exceptional items(5 - 6)
8 Exceptional Items
9 Profit from ordinary activities after finance costs but before
tax(7-8)

12 Other Comprehensive Income (net of tax)

(5.17)

13 Total Comprehensive Income (11 + 12)

3,275.73

(1,765.89)

14 Paid-up Equity Share Capital

Face Value of 10/- each

5,099.84

5,099.84

6.46
6.46

4.18
4.18

15 Earnings per share (not annualised)

a) Basic (Rs.)
b) Diluted (Rs.)

'''.. c, 1.: ', . : A !

(3,888.72)

i4

Pa

rt

Notes:
1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at
their meeting held on August 31,2016
2. The Company has adopted Indian Accounting Standards (Ind AS) prescribed under Section 133 of the
Companies Act, 2013 read with the relevant rules thereunder, effective April 1, 2016 (transition date being
April 1, 2015).The results for the quarter ended June 30, 2015 have not been subjected to limited review or
audit. However, the management has exercised necessary due diligence to ensure that the financial results
for the quarter ended June 30, 2015 provide a true and fair view of the Company's affairs
3.

Reconciliation between financial results as previously reported and as restated under Ind AS for quarter
ended June 30, 2015 are as under :
in Lakh
For quarter
Particulars

ended June 30,

2015

Net Profit/ (Loss) after tax under erstwhile Indian GAAP

Loss on Fair valuation of Investments in Mutual Fund, Exchange Traded
Fund and Equity Instruments
Employee Benefit expenses (including acturial valuation Gain/losses)
Reversal of Loss on Investments classified as Fair value through Other
Comprehensive Income
Other adjustments
Deferred tax adjustments

(3,426.80)
(555.47)
(16.12)
5,940.20
(7.78)
188.80

Net Profit/ (loss) after tax under Ind AS (A)

2,122.83

Other Comprehensive Income (net of tax)

Total Other Comprehensive Income (B)

(3,888.72)
(3,888.72)

Total Comprehensive Income under Ind AS (C=A+B)

(1,765.89)

4. The Company's business activity falls within a single segment viz. Commodity Exchange and hence has only
one reportable Operating segment as per Ind AS 108 - Operating Segments.
5. In accordance with the regulatory guidelines, the Company has conducted Stress test for the quarter ended
June 30, 2016, to determine the adequacy of the Settlement Guarantee Fund (SGF).The SGF been adequate,
no fresh contribution from the profits have been made during the current quarter under review
6. 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 but could not complete the exercise by June 19, 2015 due to hurdles placed by MSEI.
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 entire amount of Rs.4159.20 lakhs, being the amount of deposit
presently held by MSEI against the warrants. Vide interim orders dated July 9, 2015 and July 10, 2015, the
Court restrained MSEI from cancelling and / or extinguishing the warrants or any rights relating thereto, a
from dealing in any manner with the deposit of Rs.4159.20 lakhs till further orders. By a further order d
August 3, 2015, the Court recorded MSEI's statement that MSEI would deposit a sum of Rs.2000.00 lak
Court to establish its bona fides, pursuant to which MSEI deposited a sum of Rs.2000.00 lakhs in Court. By
order dated October 13, 2015 the Court, inter alia, held that the deposit belonged to the Company and MS
d not appropriate the same towards its own capital reserves irrespective of extinguishment of the

warrants. Accordingly, the Court has made the Company's Notice of Motion absolute and directed MSEI to
deposit an additional sum of Rs.2159.18 lakhs such that the total amount deposited by MSEI would be equal
to Rs.4159.20 lakhs. ("October 13 Order").
On December 9, 2015, MSEI filed Appeal No. 502 of 2016 before a Division Bench of the Bombay High Court
against the October 13 Order. MSEI also filed Notice of Motion No.1962 of 2016 seeking a stay on the
operation and implementation of the October 13 Order. The Division Bench hearing the matter extended
the time given to MSEI for depositing the amount of Rs.2159.20 lakhs from time to time pending hearing of
the Notice of Motion for stay of the October 13 Order.
Pursuant to negotiations between the parties, on August 24, 2016, the Company and MSEI filed Consent
Terms ("Consent Terms") before the Court. As per the Consent Terms, it was agreed that subject to MSEI
obtaining necessary approvals, including approvals from SEBI, the Company will exercise the option to
subscribe to, and MSEI shall allot and issue to the Company, equity shares in lieu of 2651.77 lakhs warrants.
MSEI will cancel the remaining 15.07 crore warrants held by the Company. On satisfaction of the Consent
Terms, out of the total amount deposited by MSEI in Court, a sum of Rs.1507.40 lakhs will be released in
favour of the Company towards refund of deposit held against the cancelled warrants.
Vide an order dated August 24, 2016, the Court has taken the Consent Terms on record and granted 3
months to comply with the same, with liberty to apply for extension of time, if required.
Accordingly, the Company is carrying the investments in warrants of Rs. 4159.20 lakhs at it's face value of
Re. 1 each.
7. Previous period figures have been regrouped / reclassified wherever necessary to conform to current
period figures

For Multi Commodity Exchange of India Limited

Place : Mumbai

Mrug

aranjape

Date : August 31, 2016

Managing Director & CEO

MCX

Multi Commodity Exchange Of India Limited

METAL It TIMMY
Trade via Trust

Exchange Square, Suren Road, Andheri (East), Mumbai-400 093, India.

CIN : L51909MH2002PLC135594; E-mail : info@mcxindia.com; Website: www.mcxindia.com

Extract of Statement of Standalone Unaudited Financial Results for the Quarter Ended 30 June, 2016
(Rs.in lalchs)
Three mouths ended

Particulars

30 Juae.,201

Three mouths ended

r

,i.tinnudited

30 Julie, 201
nauctked

Total Income from Operations

6,298.47

5,621.30

Net Profit / (Loss) for the period (before Tax, Exceptional and/or
Extraordinary items)

4,801.57

3,244.53

Net Profit / (Loss) for the period before tax (after Exceptional and /or
Extraordinary items)

4,801.57

3,244.53

Net Profit / (Loss) for the period after tax (after Exceptional and /or
Extraordinary items)

3,280.90

2,122.83

3,275.73

(1,765.89)

5,099.84

5,099.84

6.46
6.46

4.18
4.18

Total Comprehensive Income for the period [Comprising profit / (loss)

for the period (after tax) and Other Comprehensive Income (after tax) ]

Equity Share Capital (of Rs.10/- per share)

Earnings Per Share (of Rs.10/- each) (not annualised)

Basic :
Diluted:

Notes :
1 The above is an extract of the detailed format of Quarterly Financial Results filed with BSE under Regulation 33 of the
SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results
are available on BSE's website at www.bseindia.com and on the Company's website at www.mcxindia.com.
2 The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting
held on August 31, 2016
3 The Company has adopted Indian accounting statndard ('Ind AS') from April 01, 2016. The figures for quarter ended
June 30, 2015 are also Ind AS compliant.

ulti Commodity Exchange of India Limited

Place : Mumbai
Date : August 31, 2016

Mruga laranjape
Managing Director & CEO

/.

38, Bombay Mutual Building,

2"d Floor, Dr. D. N. Road, Fort,
Mumbai - 400 001.

Tel. : +91(22) 2262 3000

Email : contact@shahgupta.com
Web : www.shahgupta.com

Shah Gupta & Co.

Chartered Accountants
INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors

Multi Commodity Exchange of India Limited
Mumbai
We have reviewed the accompanying statement of unaudited financial results of Multi Commodity Exchange of
India Limited (the Company) for the quarter ended 30th June 2016 (the Statement), being submitted by the
Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016.
Attention is drawn to the fact that the figures for the corresponding quarter ended 30th June 2015 including
the reconciliation of profit/ loss under Ind AS of the corresponding quarter with profit/ loss reported under
previous GAAP, as reported in these financial results have been approved by the Company's Board of
Directors but have not been subjected to review. This statement is the responsibility of the Company's
Management and has been approved by the Board of Directors. Our responsibility is to issue a report on this
statement based on our review.
We conducted our review in accordance with the Standard on Review Engagements (SRE) 2410, "Review of
Interim Financial Information Performed by Independent Auditor of the Entity", issued by the Institute of
Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain
moderate assurance as to whether the financial statements are free of material misstatement. A review is
limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and
thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not
express an audit opinion.
Based on our review conducted as above, nothing has come to our attention that causes us to believe that the
accompanying Statement, prepared in accordance with the Accounting Standards specified under Section 133
of the Companies Act, 2013 read with relevant rules and other accounting principles generally accepted in
India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 as modified by Circular No
.CIR/CFD/FAC/62/2016 dated July 5, 2016, including the manner in which it is to be disclosed, or that it
contains any material misstatement.
We draw attention to Note 6 to the Statement regarding the Consent Terms between the Company and MSEI
as per which subject to MSEI obtaining SEBI approval, the Company will exercise option to subscribe equity
shares in lieu of 2651.77 lakh warrants of MSEI and release of Rs.1507.40 lakh by MSEI on cancellation of
balance 1507.40 lakh warrants upon satisfaction of the Consent Terms. The H'ble High Court has granted
three months to comply with the Consent Terms. Accordingly the investments in warrants of MSEI
aggregating to Rs. 4159.18 lakh (carried at the face value of Re.1 per warrant) is considered realizable by the
Management. Our review report is not qualified in respect of this matter.
For SHAH GUPTA & CO
Chartered Accountants
Firm Registration No- 109574W

ipu/
K Choksi
Partner
M. No. 37606
Place: Mumbai
Date: August 31, 2016