Professional Documents
Culture Documents
V.Ghatalia: & Associates
V.Ghatalia: & Associates
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NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 5 : Investments
Long Term Investments (At cost)
A. Other than trade
Unquoted
Government Securities :
National Savings Certificate
B. In Subsidiary Companies
Unquoted, fully paid-up
-71,24,085 (Previous year 1 0,50,000) Equity Shares of Rs.1 0/- each fully paid of Indian Bullion Market Association Limited.
-Application money for 26,37,724 Equity shares of Rs.10/- each in Indian Bullion Market Association Ltd.
Current Investments (Non Trade)
(At cost or Net Realisable Value, whichever is lower)
Unquoted
(Previous Year: NIL)
Aggregate Value of unquoted investment at market value
Purchase and Redemption during the Year
ICICI Prudential Liquid Fund Systematic Investment Plan Daily Dividend Reinvestment
Reliance Liquidity Fund-Daily Dividend Reinvestment Plan
Purchase and Redemption during the Previous Year
Canara Robeco Liquid - Institutional Plan -Daily Dividend Reinvestment
ICICI Prudential Liquid Fund Systematic Investment Plan Daily Dividend Reinvestment
LIC MF Liquid Fund Daily Dividend Reinvestment
Reliance Liquidity Fund-Daily Dividend Reinvestment Plan
Reliance Money Manager Fund-Institutional Plan -Daily Dividend Reinvestment
Religare Liquid Fund Institutional Plan -Daily Dividend Reinvestment
Religare Ultra Short Term Fund Institutional Plan Daily Dividend Reinvestment
UTI Liquid Cash Institutional Plan -Daily Dividend Reinvestment
Purchase
Units
5,312,652.1050
58,153,473.8600
Purchase
Units
9,961,795.5150
50,312,502.2130
20,997,288.9190
93 '1 07,563.4200
100,054.8490
7,995,707.5150
8,010,552.3830
9,814.3510
Amount
531,385,251
581,831,321
Amount
100,026,389
503,170,617
230,552,332
931,364,268
100,168,552
80,008,248
80,231,290
10,005,197
As at March
31, 2011
Rs.
111,000
71,240,850
26.377.240
97.729.090
140.779.782
238.508.872
140,779,782
As at March
31,2010
Rs.
110,000
10,500,000
10,610,000
10.610.000
Redemption
Units Amount
3,905,172.3730 390,605,469
58,153,473.8600 581 ,831 ,321
Redemption
Units Amount
9,961,795.5140 100,026,389
50,312,502.2130 503,222,203
20,997,288.9190 230,552,332
98,106,792.6920 981,372,058
100,054.8490 100,168,551
7,995,707.5150 80,008,248
8,010,552.3830 80,231,290
9,814.3510 10,005,198
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NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 6 : Sundry debtors
Debts outstanding for a period exceeding six months
(Secured, considered good)
(Unsecured, considered good)
(Unsecured ,considered doubtful)
Other debts
(Secured, considered good)
(Unsecured, considered good)
Less : Provision for doubtful debts
Included in Sundry Debtors are:
Dues from companies under the same management
Indian Bullion Market Association Limited
(Maximum amount outstanding during the year Rs.16,02,036 (Previous year
Rs.64,51 ,476)
Financial Technologies (India) Limited
(Maximum amount outstanding during the year Rs.250,000 (Previous year
Rs.2,361 ,862)
National Bulk Handling Corporation Limited
(Maximum amount outstanding during the year Rs.30,52,646 (Previous year
Rs.21,875)
Schedule 7 : Cash and bank balances
Cash on hand
Balances with scheduled Banks:
On current accounts
On deposit accounts ( Refer Note 16 of schedule 17)
Schedule 8: Other current assets
Traded Goods (RSA Tokens)
As at March
31,2011
Rs.
10,893,364
886,856,877
897,750,241
789 869
896 960 372
250,000
291,405
54 ,405
As at March
31,2011
Rs.
61,870
99,051,092
70,650,056
169 763 018
As at March
31,2011
Rs.
As at March
31,2010
Rs.
4,077,170
7,981,228
12,058,398
12,058,398
543,000
As at March
31,2010
Rs.
38,520
30,680,490
62,257,560
92,976,570
As at March
31,2010
Rs.
863,997
863,997
NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
As at March As at March
31,2011 31,2010
Rs. Rs.
Schedule 9 : Loans and advances
Unsecured, considered good
Advances recoverable in cash or kind or for value to be received 310,897,172 38,174,798
Insurance claims receivables (Refer Note 15 of schedule 17) 100,889,700 100,889,700
Recoverable from NAFED (Refer Note 15 of schedule 17) 94,828,691 148,932,336
Deposits - Office Rent 6,906,280 6,906,280
Deposits - Warehouse 685,264 1,422,549
Deposits - others 619,777 18,400
VAT Credit (lnput)Receivable 31,997,604 46,801
Advance Tax 22,005,815 11,982,888
Service Tax Credit (Net) 975 758 1,806,105
569 806 061 310 179 857
As at March As at March
31,2011 31,2010
Rs. Rs.
Schedule 10: Current liabilities
Sundry creditors
(a) total outstanding dues of Micro and Small Enterprises
(b) total outstanding dues of creditors other than Micro and Small Enterprises 111,428,389 18,674,366
Amount Recevied from Applicants and Members towards -
- Initial Margin 703,162,094 112,373,630
- Application Money 750,000 500,000
- Networking Equipment Deposit 330,000 400,300
-Settlement Guarantee Fund 4,068,521 2,000,000
Advances from Customers 199,018 135,464
Other Member Liabilities 4,252,832 11,486,876
Other Liabilities 49 781 783 3,598,491
873 972 637 149 169 127
As at March As at March
31,2011 31,2010
Rs. Rs.
Schedule 11 : Provisions
Provision for leave encashments 3,364,592 2,740,386
Provision for gratuity 799,242 1,085,368
4 163 834 3 825,754
NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
Schedule 12: Operating Income
Transaction Fees
Admission Fees
Application Processing Fees
Annual Subscription Fees
Delivery Fees
Procurement SeNice charges
Storage & Warehousing Income
Schedule 13 : Other Income
Interest
Bank deposits (TDS Rs.4,77,099 Previous year: Rs.18,38,052)
Others
Dividend from current investments - units of mutual funds
Depository participant charges
Business Support Charges
Miscellaneous income
Schedule 14: Personnel expenses
Salaries, wages and bonus (Refer note 14 of schedule 17)
Contribution to provident fund
Gratuity Expenses
Staff welfare expenses
For the Year
ended March
31,2011
Rs.
95,411,499
56,865,000
936,500
9,754,972
87,338,391
14,912,611
33 977 041
299 196 014
For the Year
ended March
31,2011
Rs.
4,787,830
429,713
4,716,573
8,001,000
3 146 666
21 081 782
For the Year
ended March
31,2011
Rs.
76,799,957
1,669,824
583,510
885 560
79 938 851
For the Yea r
ended Marc h
31,2010
Rs.
7,008,4 48
21,450,0 00
277,0 00
7,405,0 00
49,712,4 07
63,479,0 57
27,714,6 53
177 046 5 65
For the Yea r
ended Marc h
31,2010
Rs.
11,437,166
56,006
3,018,646
1,800,000
15,000,000
1,872,552
33,184 370
For the Year
ended March
31,2010
Rs.
64,607,679
1,223,917
1,352,107
454,231
67 637 934
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NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
For the Year For the Year
ended March ended March
31,2011 31,2010
Rs. Rs.
Schedule 15: Operating and other expenses
Electricity Charges 4,258,560 4,490,508
Rent 68,240,398 63,847,500
Rates and taxes 545,551 7,739,774
Insurance 1,477,761 888,775
Handling & Transportation 322,736 6,759,477
Repairs and maintenance 2,217,677 1,254,887
Advertising and sales promotion 13,909,405 5,451,117
Travelling and conveyance 6,673,086 6,900,451
Communication costs 4,299,397 3,347,049
Brokerage 30,000,000
Legal and professional fees 4,767,913 5,271,037
Business/ Software support charges 69,309,165 41,237,937
Payment to Auditors (Including Service Tax}
Audit fee 937,550 772,100
Tax audit fee
Miscellaneous expenses * 15 491 303 8,207,715
222 450 502 156,168,327
*Miscellaneous expenses include prior period expenses of Rs.1 ,402,853
NATIONAL SPOT EXCHANGE LIMITED
SCHEDULES FORMING PART OF THE ACCOUNTS
For the Year For the Year
ended March
ended March
31,2011 31,2010
Rs. Rs.
Schedule 16: Financial expenses
Interest
-on banks 10,198,825 47,795
-others 21116 706 77,550
31 315 531 125 345
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Schedule- 17: Notes to Accounts:
1. Nature of Operations
National Spot Exchange is a pan India self regulated electronic spot exchange offering
trading in various agricultural, metals and industrial commodities through its platform. It
also offers customized procurement solutions to government agencies and private
companies. It also offers services like warehousing and collateral management services to
market participants
2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation
The financial statements have been prepared to comply in all material respects with the
Accounting Standards notified by Companies (Accounting Standards) Rules, 2006, (as
amended) and the relevant provisions of the Companies Act, 1956 (the Act). The financial
statements have been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company.
B. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the
date of the financial statements and the results of operations during the reporting period.
Although these estimates are based upon management's best knowledge of current events
and actions, actual results could differ from these estimates.
C. Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and impairment losses if
any. Cost comprises the purchase price and any attributable cost of bringing the asset to
its working condition for its intended use.
D. Depreciation
Depreciation is provided using the Straight Line Method as per the useful lives of the
assets estimated by the management, or at the rates prescribed under schedule XIV of
the Act whichever is higher.
Rate Schedule XIV
(SLM) Rates (SLM)
Office Equipment 4.75% 4.75%
Computers 16.21% 16.21%
Furniture 6.33% 6.33%
Vehicles 9.50% 9.50%
Networking Equipments 20% 4.75%
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
In case of assets acquired during the year from the group companies depreciation has
been charged based on the residual life of the asset.
Depreciation in respect of assets acquired during the year whose actual cost does not
exceed Rs.S,OOO has been provided at 100%.
Leasehold improvements are amortized over the primary period underlying lease of the
office premises or estimated useful life, whichever is lower.
E. Impairment
The carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present
value at the weighted average cost of capital.
F. Intangible assets
Trademarks are amortized over ten years considering their related useful lives. Software is
amortized at the rate of 16.21% from the date of installation. Any additions to the base
software are amortized over the remaining useful life of the software.
G. Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased item, are classified as operating leases. Operating lease payments
are recognized as an expense in the Profit and Loss account on a straight-line basis over
the lease term.
Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease income is recognised
in the Profit and Loss Account on a straight-line basis over the lease term. Costs, including
depreciation are recognised as an expense in the Profit and Loss Account. Initial direct
costs such as legal costs, brokerage costs, etc. are recognised immediately in the Profit
and Loss Account.
H. Investments
Investments that are readily realizable and intended to be held for not more than a year
are classified as current investments. All other investments are classified as long-term
investments. Current investments are carried at lower of cost and fair value determined
on an individual investment basis. Long-term investments are carried at cost.
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
I. Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured.
Sale of goods
Revenue is recognized when the significant risks and rewards of ownership of the goods
have passed to the buyer. Excise Duty, Sales Tax and VAT deducted from turnover (gross)
are the amount that is included in the amount of turnover (gross) and not the entire
amount of liability raised during the year.
Admission Fees
Admission Fees (non refundable) and Processing Fees from new members for joining the
exchange are recognized when the membership is approved. Amount received from
prospective members towards admission fees is forfeited and recognized as income in the
year when allotment of membership is pending for a period more than one year on
account of non receipt of documents.
Annual subscription fees
Annual subscription fees are charged upfront and recognized on accrual basis in the
financial year in which it is charged.
Transaction fees
Transaction fees are charged to members based on the volume of transactions entered
into by the members through the exchange. These are accrued when orders placed by
members on the network are matched and confirmed.
Delivery fees
Delivery fees are charged to members on the basis of trades executed. In case of seller
members, delivery fees are recognized on accrual basis and in case of buyer members,
delivery fees are recognized at the time of withdrawals of commodities from the
exchange/exchange accredited warehouses.
Storage charges
Storage charges are accrued as income on the completion of the storage cycle and are
exclusive of service tax, if any.
Procurement service
Procurement service charges are levied on value of procurement and are recognized on
accrual basis on completion of procurement and processing activity. Commitment fees are
recognized upfront on receipt as per the terms of agreement with clients.
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NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Deposits (non refundable)
Networking equipments deposits (non refundable) are treated as income in the year in
which it is received.
Dividend income
Dividend income is recognized when the Company's right to receive dividend is
established.
Interest income
Revenue is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.
J. Foreign Currency Transactions
(i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the
foreign currency amount the exchange rate between the reporting currency and the
foreign currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items
which are carried in terms of historical cost denominated in a foreign currency are
reported using the exchange rate at the date of the transaction; and non-monetary items
which are carried at fair value or other similar valuation denominated in a foreign currency
are reported using the exchange rates that existed when the values were determined.
(iii) Exchange Differences
Exchange differences arising on a monetary item that, in substance, form part of the
Company's net investment in a non-integral foreign operation is accumulated in a foreign
currency translation reserve in the financial statements until the disposal of the net
investment, at which time they are recognized as income or as expenses.
Exchange differences arising on the settlement of monetary items are recognized as
income or as expenses in the year in which they arise.
K. Retirement Benefits and Other Employee Benefits
Retirement benefits in the form of Provident Fund is a defined contribution scheme and
the contribution is charged to the Profit and Loss Account of the year when the
contributions to the provident fund is due. There are no other obligations other than the
contribution payable to the respective funds.
The Company's liability towards gratuity is funded through a scheme (Group Gratuity)
administered by the Life Insurance Corporation of India. Leave encashment on retirement
is provided on actual basis in accordance with the Company's scheme in this respect.
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Gratuity liability are defined benefit obligation and is provided for on the basis of an
actuarial valuation on projected unit method made at the end of each year.
Short term compensated absences are provided for based on estimates. Long term
compensated absences are provided for based on actuarial valuation at year end. The
actuarial valuation is done as per projected unit credit method.
Actuarial gains/losses are immediately taken to profit and loss account and are not
deferred.
L. Income Taxes
Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and
fringe benefit tax is measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India. Deferred income taxes
reflects the impact of current year timing differences between taxable income and
accounting income for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set off current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on
income levied by same governing taxation laws. Deferred tax assets are recognized only
to the extent that there is reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. In situations where the
Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets
are recognized only if there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It
recognizes unrecognized deferred tax assets to the extent that it has become reasonably
certain or virtually certain, as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The
Company writes-down the carrying amount of a deferred tax asset to the extent that it is
no longer reasonably certain or virtually certain, as the case may be, that sufficient future
taxable income will be available against which deferred tax asset can be realized. Any
such write-down is reversed to the extent that it becomes reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available.
M. Segment Reporting Policies
Identification of segments:
The Company's operating businesses are organized and managed separately according to
the nature of products and services provided, with each segment representing a strategic
business unit that offers different products and serves different markets. The analysis of
geographical segments is based on the areas in which major operating divisions of the
Company operate .
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NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Allocation of common costs :
Common allocable costs are allocated to each segment according to the relative
contribution of each segment to the total common costs.
Unallocated items :
Includes general corporate income and expense items which are not allocated to any
business segment.
Segment Policies :
The Company prepares its segment information in conformity with the accounting policies
adopted for preparing and presenting the financial statements of the Company as a whole.
N. Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted earnings per share, the
net profit or loss for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
0. Provisions
A provision is recognized when an enterprise has a present obligation as a result of past
event; 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 are not discounted to its
present value and are determined based on 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.
P. Cash and Cash Equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank
and in hand and short-term investments with an original maturity of three months or less.
3. Segment Information
Business Segments:
Company's business segments are as under:
Exchange related services: Includes admission fees, annual subscription fees,
processing fee, transaction fees, and exchange delivery charges .
. ~
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Warehousing & storage income: Includes storages of agricultural products, fumigation,
quality certification etc.
Procurement Services: Procurement services consists of private procurement on behalf
of various corporate entities acting as an agent by procuring different commodities like
Castor seed, Cotton Wash Oil etc. through different sources and locations by rendering
added services like quality testing, grading, sorting, loan syndication and offering other
customized solutions.
Trading Services: Trading services include purchase of different commodities like cotton seed
wash oil, sugar, castor seed etc. from different parties and supplying the same to various
customers.
Business Segments
Refer annexure A
4. Related parties
Names of related parties where control exists irrespective of whether
transactions have occurred or not:
Holding Company:
Subsidiary Company:
Financial Technologies (India) Limited
Indian Bullion Market Association Limited
Names of other related parties with whom transactions have taken place during
the year
Fellow Subsidiaries:
1 Atom Technologies Limited (atom)
2 National Bulk Handling Corporation Limited (NBHC)
3 Tickerplant Limited (Tickerplant)
4 Financial Technologies Communications Limited _(_FTCLl
5 Credit Market Services Limited (CMSL)
Associates:
1 Multi Commodity Exchange of India Limited _(_MCXl
2 MCX SX Stock Exchange _(_MCX SXl
Key Management Personnel
Jignesh Shah Director
V. Hariharan Whole Time Director
Anjani Sinha Chief Executive Officer
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
5. Transactions with Related Party
Refer annexure B
6. In accordance with the Accounting Standard 22 on Accounting for Taxes on Income, the
Company has made adjustments in its accounts for deferred tax liabilities/ assets
The tax effects of significant temporary differences that resulted in deferred tax assets
and liabilities are
As at March As at March
31,2011 31,2010
Amount (Rs.) Amount (Rs.)
Deferred Tax Asset
Provision for Gratuity 271,662 368,917
Provision for Leave encashment 1,143,625 931,457
Preliminary Expenses - -
Carry Forward Losses and unabsorbed 51,315,011 45,216,201
depreciation*
Sub Total (a) 52,730,298 46,516,575
Deferred Tax Liability
Depreciation and other differences in block of 52,730,298 46,516,575
fixed assets (b)
Net Deferred Tax Asset* (a-b) - -
* The Company has recognized deferred tax asset on the accumulated carry forward
business losses and unabsorbed depreciation only to the extent of net deferred tax
liability. Deferred tax asset on balance amount of accumulated carry forward business
losses and unabsorbed depreciation is not recognized as the Company is unable to
substantiate virtual certainty of future profits against which such asset can be realized.
7. Leases
In case of assets taken on lease
The Company has entered into cancellable leasing arrangements for it's offices and
warehouses. The lease rental of Rs.54,523,690 (Previous Year Rs.12,485,388) has been
included under the head Rent under Schedule 14 in Profit & Loss Account.
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
The Company has entered into non-cancellable leasing arrangements for it's offices and
warehouses. The lease rental of Rs.12,775,485 (Previous Year Rs. 49,644,162) has been
included under the head Rent under Schedule 14 in Profit & Loss Account.
As at March As at March
31,2011 31,2010
Amount(Rs.) Amount(Rs.)
Payment not later than one year 42,754 676 33 815,661
Payment later than one year but not later than five 42,098,177 1,866,648
years
Payment later than five years - -
There are no restrictions imposed by lease arrangements.
In case of assets given on lease
The Company has entered into cancellable leasing arrangements for it's warehouses. The
lease rental of Rs. 609,988 (Previous Year Rs. Nil) has been included under the head
warehousing and storage income under Schedule 14 in Profit & Loss Account. These
warehouses have been sub-leased and hence not included in fixed assets.
As at March As at March
31,2011 31,2010
Amount(Rs.) Amount(Rs.}_
Payment not later than one year 847 391 -
Payment later than one year but not later than five - -
years
Payment later than five years - -
8. Capital Commitments
As at March As at March
31,2011 31,2010
Amount(Rs.) Amount[Rs.}_
Estimated amount of contracts remaining to be executed 2,135,405 2,135,405
on capital account and not provided for.
9. Provisions and Contingencies
Contingent Liabilities not provided
Bank/Cor orate Guarantees
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
10. Earnings Per Share
Profit/(loss) after tax
Earnings Per Share
Weighted average number of equity shares in calculating
basic EPS
Basic & Diluted Earnings per share (Rupees)
For The Year
Ended March
31 2011
26,073,500
0.58
45,000,000
0.58
10.00
For The Year
Ended March
31 2010
(64,301 '730)
(1.88)
34,232,877
(1.88)
10.00
11. Gratuity and other post-employment benefit plans
Gratuity Plan: The Company has made annual contributions to the Gratuity-cum-Life
Assurance (Cash Accumulation) 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 table sets out the status of the gratuity plan and amounts recognized in the
Company's financial statements as at 31st March, 2011 and 2010
Profit and Loss Account
Net employee benefit expense (recognised in Employee Cost)
Current service cost
Interest cost on benefit obli
nized in the ear
583,509
Actual return on lan assets 163 721
Gratuity
For The Year
Ended March
31 2010
581 451
54 977
21 754
737 433
1,352,107
80 474
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
Balance Sheet
Details of Provision for Gratuity
Gratuity
For The Year For The Year
Ended March Ended March
31L 2011 31,2010
Defined benefit obligation 2,783,729 2,119 791
Fair value of plan assets 1,984,487 1,034 423
Less: Unrecognized past service cost
Plan asset I (liability) (799 242) (1 085 368)
Changes in the present value of the defined benefit obligation are as follows:
Gratuity
For The Year For The Year
Ended March Ended March
31, 2011 31, 2010
Opening defined benefit obligation 2,119,791 687 210
Interest cost 158,984 54 977
Current service cost 909 924 581 451
Benefits Q_aid (83,293) -
Actuarial (gains) I losses on obligation (321 678) 796,154
Closing defined benefit obligation 2,783 729 2 119 791
Changes in the fair value of plan assets are as follows:
Gratuity
For The Year For The Year
Ended March Ended March
31 2011 31 2010
Opening fair value of plan assets 1 034,423 271 921
Expected return 77 582 21 754
Contributions by employer 8,69,636 6,82,028
Benefits paid (83 293) -
Actuarial gains I (losses) 86,139 58,720
Closing fair value of plan assets 1,984,487 1,034,423
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NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
The principal assumptions used in determining gratuity and post-employment
medical benefit obligations for the Company's plans are shown below:
For The Year For The Year
Ended March Ended March
31 2011 31 2010
% %
8.25 7.5
8.25 7.5
1.0 1.0
Amounts for the current year is as follows
For The Year For The Year
Ended March Ended March
31, 2011* 31, 2010*
Gratuit Gratuit
Defined Benefit Obligation 2,783,729 2,119,791
Plan Assets 1,984,487 1,034,423
Surplus/( deficit) (799,242) (1,085,368)
adjustments on plan liabilities 33,481 776,564
adjustments on plan Assets 86,139 58,720
* The disclosure is required pursuant to AS 15 (Revised) Notified by Companies
(Accounting Standards) Amendment Rules, 2008. The Company has disclosed the
amounts determined for each accounting period prospectively from the previous year and
hence disclosure of 2008 year figures have not been made.
The Company expects to contribute Rs. 266,916 to gratuity in year 2011-12
12. Various State APMC's while issuing license for establishing E-market/ Private market I
spot exchange, had condition to maintain a settlement Guarantee fund ('SGF') to meet
exchange obligations but have not given any guidelines for the constitution of the SGF. In
view of such a requirement an amount of Rs. 4,068,521 has been apportioned out of
initial margin of the members to SGF and shown under current liabilities.
13. As a part of the documentary requirements for license from State level Agricultural
Produce Market Committee's (APMC's), National Savings Certificates (NSC) are required to
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
be submitted to the APMCs. However, since NSCs are not issued to corporates, the
Company has obtained NSCs in the name of employees and submitted to the APMC.
14. Personnel expenses include reimbursement of deputation charges of the designated
CEO to Multi Commodity Exchange Limited, a Company under the same management.
Therefore, all employee related benefits and statutory obligations of personnel on
deputation are discharged by Multi Commodity Exchange Limited.
15. Included in the loans and advances is an amount of Rs. 94,828,691 recoverable from
NAFED in connection with agreement dated December 30, 2008 entered into with NAFED
by the Company. In the current year an amount of Rs.5,73,89,987 is received out of
Rs.14,89,32,336 which was outstanding at the beginning of the year. Also, included in
such recoverable is an amount pertaining to eventual shortfall in insurance claim recovery
of Rs.100,889,700. The Company management has had extensive discussions with NAFED
officials and has filed its claims with NAFED. The Company has also obtained a legal
opinion supporting its claims that in view of any shortfall in recovery from insurance
claims, it can recover such shortfall in insurance claims from NAFED. Considering the
same, the Company strongly believes that no provision is required in the financial
statements in connection with these amounts.
16. Deposit accounts include Fixed deposits aggregating Rs. 5,020,000 (Previous Year Rs.
5,000,000) placed with scheduled banks against guarantees given in favour of Agricultural
Produce Market Committee and Sales Tax authorities.
17. Additional information pursuant to the provisions of paragraphs 3, 4, 4C and
40 of Part II of Schedule VI to the Companies Act, 1956
Sales
Openinq Stock
Castor Seeds
Cotton Wash Oil
Purchases
Castor Seeds
Cotton Wash Oil
Sales
Castor Seeds
Cotton Wash Oil
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Quantity
Unit 2011
Kgs -
Kgs -
Kgs 14 705 163
Kgs 10,180,000
Kgs 14,705 163
Kgs 10,180 000
Value (Rs)
2010 2011 2010
- - -
- - -
- -
- 494 436L207 -
- 639 016_1060 -
1 133 452 267
- 497 606_L609 -
- 730_L712 256 -
1 228 318,865 -
NATIONAL SPOT EXCHANGE LIMITED
For The Year Ended 2010-11
18. Previous Year Comparatives
Previous year's figures have been regrouped where necessary to conform to this year's
classification.
As per our report of even date
s.v.
For S.V. Ghatalia & Associates
Firm Registration number : 103162W
Chartered Accountants
per Amit Kabra
Partner
Membership No. : 094533
Place : Mumbai
Date : Z 5 MAY Z011
For and on behalf of the Board of Directors of
National Spot Exchange Limited
V. Hariharan
Whole Time Director
"'' ' ""'\ ) I v , .. \ "-Y'I .,J/1 C"
Nirav Pandya-' ,_ .
Company Secretary
Shreekant Javalgekar
Director
NATIONAL SPOT EXCHANGE LIMITED
Annexure A
Business Segmental Reporting
Revenue
Segment Result
Unallocated Corporate Expenses
Operating Profit/(loss)
Financial Expense
Net Profit
Other Information
Segment Assets
Unallocated Corporate Assets
Total Assets
Segment Liabilities
Unallocated Corporate Liabilities
Total Liabilities
Capital Expenditure
Depreciation
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Exchange Warehousing
2011 2010 2011 2010
272,051,011 85,852,855 33,954,676 27,714,653
23,994,996 (104,420,791 (22,008, 155) (23,525,908
391,876,627 263,761,202 17,098,548 14,490,367
391,876,627 263,761,202 17,098,548 14,490,367
718,582,868 136,811,225 3,940,538 3,690,806
718,582,868 136,811,225 3,940,538 3,690,806
Procurement Trading
2011 2010 2011 2010
14,272,108 63,479,057 1,228,318,866
7,754,513 62,370,183 54,092,999
462,394,915 292,002,981 799,474,422
462,394,915 292,002,981 799,474,422
3,007,525 36,283,348 602,535,613
3,007,525 36,283,348 602,535,613
Consolidated Total
2011 2010
1,548,596,661 177,046,565
63,834,353 (65,576,516
37,760,854 31,909,585
57,389,031 (64,176,384)
31,315,531 125,345
26,073,500 (64,301 '730).
1,670,844,512 570,254,550
417,433,109 114,301,652
2,088,277,621 684,556,202
1,328,066,544 176,785,379
406,090, 599 179,723, 846
1,734,157,143 356,509,225
10,870,002 231,179,784
55,366,011 50,601,059
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Natinal Spot Exchange Limited
Annexure B
------- - -- ---------
Nature of Trasactions
Sr.No.
1 Loan/Advances taken
Balance as at the start of the year
Taken durino the vear
Repaid during the year
Balance as at the end of the year
2 Loan/Advances Given
Balance as at the start of the vear
Given during the year
Repaid during the year
Balance as at the end of the year
3 Income:
Transaction Charges
Warehousina & storaae income
Testing & Oualitv Certificate CharQes
Wagrehouse receipt Transfer Chan:Jes
Penalty for short delivery
Annual Subcription
Oemat Storaae Income
OC Income
Commission & Brokerage
Interest
CTCL Charaes
Miscelleneuse Income
Business Chru:g_es (Net of Service Tax
Admission fees
4 Expe_r1ses:
Commission & Brokeraoe
Business support charges
Interest
Software License Fees Exo
Purchae of Goods
Fum_imition Expenses
National Bulk Handline Ltd.
Oeoutation Charaes
Multi Commodity Exchange of India Ltd.
Advertisemet Exns
Multi Commoditv Exchanae of India Ltd.
Miscelteneuse expenses charaed bv:
National Bulk Handling Corporation Ltd.
ATOM Technologies Ltd
Financial Technologies Communications Limited
Multi Commoditv Exchanae of India Ltd.
MCX Stock Exchanoe Ltd.
Ticket Plant Ltd.
5 Rent:
Multi Commoditv Exchanae of India Ltd.
Shankarlal Guru
BhaQ'NC!:! Dhada"i Pawar
6 Reimbusement of the exoenses
7 Fixed Assets:
Fixed Assets Purchased
Fixed Assets Sold
Capital wortt-in-progress including capital advances
8 Rent DePOSit as at the end of the year
9 Allotment of Equity Shares
10 Investment as at the end of the year
11 Sundry Debtors Balance as at the end of the year
12
Sundry Creditors Balance as at the end of the year
13 Initial Mar in as at the end of
14 Advance aiven as at the end of the year
Holding company or group of
individuals having control or
significant influence over the
Company and relatives of such
individuals
2011 2010
200 000 000
190 000 000 200 000 000
100 000 000
290 000 000 200 000 000
250 000
63 981 382 42 487 842
21 106,849 65 753
4 972 276
1183 856 1 212 232
6 225 302 224 720 000
150 000 000
250 000
90,305,605 2,239,351
2 500 000
Fellow Associates Total
2011 2010 2011 2010 2011 2010 2011 2010
200 000 000
190 000 000 200 000 000
100 000 000
290 000 000 200 000 000
188 500,000 14 500 000 188 500 000 14 500,000
188,500 000 14,500 000 188,500 000 14,500,000
59 661 607 2,257 262 59 661 607 2 257 262
375 566 493178 375 566 493178
2 470 720 712 986 3121 215 343,063 5 591,935 1,056 049
69,724 108 380 69 724 108,380
45,540 57 584 45 540 57 584
17,701 17 701
50,000 50 000
9,588 9 588
28,750 28 750
709,500 709 500
248 893 13041 248 893 13,041
250 000
150 544 122291 39 365 150 544 161 656
15 000 000 15 000 000
1 055 000 1 055 000
30 000 000 30 000 000
362 436 63 981 382 42 850,278
21106 849 65 753
4 972 276
639 016 060 639 016 060
1 216171 704 239 1,216171 704 239
20 950 279 18 452 708 20 950 279 18 452 708
1 859 710 1 859 710
152 778 152 778
118 535 118 535
248175 248 175
727 980 199 447 727 980 199 447
1 641 862 1 412 322 1 641 862 1 412 322
32,347 131957 131 957 32347
827 250 827 250
1 925 976 4 280,239 1,925 976 4 280 239
1183 856 1 212 232
160241 1 312 220 7,697 763 224 720 000
61123 61123
523 935 523 935 523 935 523 935
8 748 000 8 748 000
150 000 000
97 618 090 10 500 000 97 618 090 10 500 000
208 297 542 999 291 405 749 702 542 999
4,377,994 283,120 220,914 3,947,837 94,966,719 6,408,102
2 500 000 2 500 000 2 500 000 2 500 000
2,500 000
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