ICEX (Indian Commodity Exchange) Limited Unlisted Shares Annual Reports

ICEX (Indian Commodity Exchange) Limited Unlisted Shares

Indian Commodity Exchange Limited Annual Report 2023-24 Summary: **Board of Directors and Key Personnel:** As of August 20, 2024, the Board included Mr. Sushil Kumar Agrawal (Independent Director), Ms. Vaishali Kale (Shareholder Director), Mr. Suresh Babu Konakanchi (Shareholder Director), Mr. Gopala Ramaratnam (Independent Director), and Mr. Shantanu Walke (Independent Director). Key management includes Mr. Tridib Swain (Chief Executive Officer), Mr. Narayanaswamy Iyer (Chief Financial Officer), and Ms. Poonam Chhikara (Company Secretary). **AGM Information:** The 16th Annual General Meeting (AGM) will be held on September 20, 2024, via video conferencing. Key agenda items include adopting the audited financial statements and re-appointing Mr. Suresh Babu Konakanchi as a director. The remote e-voting period is from September 17-19, 2024. **Financial Performance and Operations:** During the FY 2023-24, the Exchange had an operating income of ₹0.006 Crore, compared to ₹0.25 Crore in FY 2022-23. Other income was ₹9.61 Crore versus ₹1.58 Crore in the prior year. The net profit before tax for the year ended March 31, 2024, was ₹2.91 Crore, a significant improvement from the (₹58.27) Crore loss in the previous year. Net worth stood at ₹26.27 Crore as of March 31, 2024. Trading operations were suspended for the Commodity Segment and Mutual Fund transactions wef April 01, 2022 and April 14, 2022. SEBI withdrew the permanent recognition granted to ICEX. The Board approved a voluntary surrender of recognition. There was no trading and other activities by the Exchange in the FY 2023-24. **Share Capital:** The authorized share capital is ₹368,00,00,000, divided into 73,60,00,000 equity shares of ₹5 each. The issued, subscribed, and paid-up share capital is ₹266,75,37,380, divided into 53,35,07,476 equity shares of ₹5 each. **Investor Protection Fund (IPF) and Investor Service Fund (ISF):** The ICEX-Investor Protection Fund Trust (ICEX-IPF) stood at ₹161412495.89 as of March 31, 2024. The balance in the Investor Service Fund (ISF) account is ₹40,93,374.71. **Related Party Transactions & Internal Controls:** No related party transactions under section 188 (1) of the Companies Act, 2013 were entered into. The company has adequate internal financial controls commensurate to the size and nature of the business. **Loans, Guarantees, Investments, and Securities:** No loans or guarantees were given as per section 186 of the Companies Act, 2013, but investments were made as per the section. **Directors and Meetings:** Mr. Gopala Ramaratnam and Mr. Shantanu Walke were appointed as additional directors. Mr. Ranjit Kumar Samantaray resigned as a whole-time director. The Board met four times during the year. **Audit Committee:** The Audit Committee comprised Mr. Sushil Kumar Agrawal, Ms. Vaishali Kale and Mr. Shantanu Walke. All recommendations of the Audit Committee were accepted by the Board. **Employees:** There were no employees covered under Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. **Risk Management:** The Risk Management Committee is currently non-functional due to the voluntary surrender of recognition. **Auditors:** M/s A.R. Sodha & Co. are the Statutory Auditors. M/s. AVS & Associates undertook the Secretarial Audit. No frauds were reported by auditors. **Material Changes and Commitments:** No material changes or commitments affecting the financial position of the Exchange. **Conservation of Energy:** LED lights and HVAC central controller system are installed to reduce energy consumption. **Foreign Exchange:** Foreign Exchange Earnings: NIL, Foreign Exchange Outgo ₹ 1,66,57,322 **Directors’ Responsibility Statement:** The directors confirm adherence to accounting standards, selection of appropriate accounting policies, maintenance of adequate records, preparation of annual accounts on a going concern basis, and implementation of internal financial controls. **Auditor’s Report:** The auditor's report includes a statement on the matters specified in paragraphs 3 and 4 of the Companies (Auditor's Report) Order, 2020. **Corporate Governance:** The company is partially compliant with Corporate Governance Norms as specified for listed companies. **Remuneration:** Details of remuneration paid to directors and key management personnel are provided. **Shareholding:** Details regarding changes in the composition of existing ones including composition, details of meetings of the Board and Committees at March 31,2024 are provided. **Financial Statements:** The provided content also includes the Balance Sheet, Statement of Profit and Loss, and Statement of Changes in Equity as of March 31, 2024, along with detailed notes on these statements, outlining accounting policies, capital management, financial instruments, and other relevant financial information. The auditor’s opinion indicates that the financial statements provide a true and fair view of the company's financial position and performance, subject to certain limitations and observations noted in the report. In summary, the report outlines the company's financial performance, strategic decisions to surrender recognition, compliance with regulatory requirements, and key aspects of its corporate governance and financial statements, covering the period up to March 31, 2024.

ICEX (Indian Commodity Exchange) Limited Unlisted Shares

The following is a comprehensive summary of the annual report for 2022-23 for the Indian Commodity Exchange Limited ("ICEX"), meticulously capturing all crucial information, key arguments, supporting data, methodologies, findings, conclusions, and actionable insights presented throughout the document: **Corporate Overview** ICEX, a recognized Commodity Exchange regulated by SEBI, operated with a demutualized structure, offering online trading, clearing, and settlement. The exchange suspended trading operations in Commodity Segment and Mutual Fund transactions from April 01, 2022, and April 14, 2022, respectively. SEBI withdrew the permanent recognition granted to ICEX, effective May 18, 2022, but the Securities Appellate Tribunal (SAT) set aside this order, allowing the exchange a year for revival. ICEX requested allowing new investors up to 51% stake in the equity shares to raise funds but Regulator did not acceded to this request. Ultimately, the Board approved Voluntary surrender of recognition to the Regulator to discontinue commodity derivatives business, with an EOGM approving this in May 2023. Management will consider other businesses appropriate for the exchange’s limited funds. **Financial Performance (2022-23)** The Exchange reported a challenging financial year. The operating income decreased to ₹0.25 Crore from ₹1.22 Crore in F.Y. 2021-22, while other income increased to ₹15.83 Crore (from ₹0.85 Crore). The net loss before tax was ₹58.27 Crore, compared to a loss of ₹21.73 Crore in the previous year. The net worth (including Exchange's initial Settlement Guarantee Fund contribution) as at March 31, 2023, stood at ₹23.36 Crore. No dividend is recommended. **Share Capital** The authorized share capital of ICEX is ₹368,00,00,000/- divided into 73,60,00,000 Equity shares of ₹5/- each. The issued, subscribed, and paid-up share capital is ₹266,75,37,380/- divided into 53,35,07,476 Equity shares of ₹5/- each fully paid up. **Investor Protection Fund** The ICEX Investor Protection Fund Trust (ICEX - IPF) aims to protect investors' interests by meeting legitimate claims arising from member defaults. The fund stood at ₹15,04,81,569/- as of March 31, 2023. **Governance and Directors** The board comprised independent and shareholder directors, including: Mr. Sushil Kumar Agrawal (Independent Director), Ms. Vaishali Kale and Mr. Suresh Babu Konakanchi (Shareholder Directors) and Mr. Ranjit Kumar Samantaray (Whole time director.) Several changes in composition occurred during the year due to resignations and appointments. The Board met eight times during the financial year. The report includes details of directors seeking re-appointment, along with their qualifications and relationships. This section highlights Ms. Vaishali Kale, Mr. Shantanu Walke, and Mr. Gopala Ramaratnam. The company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India. **Key Managerial Personnel (KMP)** The KMP include: Mr. Ranjit Kumar Samantaray (Whole time director), Mr. Narayanaswamy Iyer (Chief financial officer), Ms. Poonam Chhikara (Company Secretary). **Committee Structure** The report details the composition and meetings of the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee, including attendance details. **Related Party Transactions** No materially significant related party transactions occurred. **Corporate Social Responsibility (CSR)** Due to the exchange's net-worth and profitability not meeting certain thresholds, provisions of the Companies Act, 2013 regarding the constitution of a Corporate Social Responsibility Committee are not applicable. **Board Evaluation** The Board conducted an annual performance evaluation of its performance and individual directors. The criteria for evaluation included Qualification, Experience, Knowledge, Competency, etc. **Risk Management** A well-defined risk management framework is in place, with a Risk Management Committee authorized to monitor and review risk management plans. **Vigil Mechanism** The Company's Whistle Blower Policy enables stakeholders to report genuine concerns and provides safeguards against victimization. **Auditors** M/s. Chaturvedi and Shah LLP, Chartered Accountants, served as statutory auditors for FY 2018-19 to FY 2022-23. M/s A.R. Sodha & Co. Chartered Accountants have been recommended the appointment of statutory auditors of the company from financial year 2023 to 2028. **Material Changes & Commitments** No material changes or commitments occurred affecting the financial position of the exchange. **Energy Conservation** The company strives to optimize energy usage through initiatives like using LED lighting and installing HVAC Central Controller systems. **Significant and Material Orders Passed by Regulators** SAT passed an order June 13, 2022, allowing a year to ICEX to revive, but ultimately the board approved voluntary surrender of recognition. **Corporate Governance Report** A Practicing Company Secretary's certificate is appended, confirming status of compliances. **Directors Responsibility Statement** The Directors confirmed adherence to accounting standards, proper accounting policies, sufficient care for maintenance of adequate records, preparation of accounts on a going concern basis, and adequate internal financial controls. **Annexures** * Includes details of contracts/arrangements. * Remuneration details of managerial personnel. * Policy on appointment and remuneration for Directors, Key Managerial Personnel and Senior Management employees. * Report of Secretarial Audit and Management. * Details on Remuneration as required under the Companies Act. * Information pursuant to Rule 17 of the Securities Contracts (Regulation) Rules, 1957. **Audit Reports** * Independent Auditor's Report on Ind AS Financial Statements with Opinion * Report on Other Legal and Regulatory Requirements * Auditor's Responsibilities for the Audit of Financial Statements. * Report on the Internal Financial Controls under Clause (f) of Sub-section 3 of Section 143 of the Companies Act, 2013 * Meaning of Internal Financial Controls Over Financial Reporting. * Independent Auditor's Report even date on the Standalone Financial Statements of Indian Commodity Exchange Limited. This comprehensive summary covers the annual report's key aspects, providing a detailed overview of ICEX's performance, governance, and financial standing in FY 2022-23.

ICEX (Indian Commodity Exchange) Limited Unlisted Shares

The document is the Annual Report for 2021-22 of the Indian Commodity Exchange Limited (ICEX). It covers various aspects of the company, including its financial performance, operations, governance, and future outlook. **Notice of AGM:** The 14th Annual General Meeting of ICEX will be held on November 21, 2022, via video conferencing. The agenda includes adopting the audited financial statements for the year ended March 31, 2022, appointing a director, and appointing Mr. Ranjit Kumar Samantaray as a Director of the Company. Instructions for e-voting and participation in the AGM are provided. **Directors' Report:** ICEX's trading operation re-commenced on August 28, 2017, with the launch of Diamond Derivatives contract. ICEX launched Steel Long contracts on August 28, 2018. The Board of directors meeting decided to keep the Trading Operations of the Exchange and Mutual Fund transactions under suspension for a temporary period with immediate effect. SEBI withdrew the permanent recognition granted to ICEX with effect from May 18, 2022. An appeal was filed with the Securities Appellate Tribunal (SAT), which allowed the Exchange one year for revival. The company's authorized share capital was ₹368 Crore. The operating income for FY 2021-22 was ₹1.22 Crore, and the net loss after tax was ₹21.73 Crore. The Investor Protection Fund stood at Rs. 13,56,39,687.25. **Management Discussion and Analysis Report:** The management requested SEBI to permit the Exchange to have a single investor to hold up to 51% for a period of five years from date of investment. Trading Operations of the Exchange and Mutual Fund transactions were suspended for a temporary period wef 01.04.2022 and 14.04.2022 respectively. The net-worth of the Exchange as on March 31, 2022 was ₹81.96 crores. **Corporate Governance Report:** The Board consisted of 6 directors, including 3 Shareholder Directors and 3 Public Interest Directors. The company had committees of the Board. The report covers details of director attendance, remuneration, and various aspects of corporate governance. **Financial Statements:** The balance sheet shows total assets of ₹1,447,251.14 thousand. The equity share capital is ₹2,667,537.38 thousand and total equity is ₹823,490.10 thousand. The statement of profit and loss indicates a loss before tax of (₹217,369.61) thousand and a loss for the year of the same amount. The auditor has given a qualified opinion due to a lack of sufficient audit evidence about the recoverable amount of certain assets because of non-impairment testing. The auditor draws attention to material uncertainty related to the company's ability to continue as a going concern. The statements also detail significant accounting policies.

ICEX (Indian Commodity Exchange) Limited Unlisted Shares

The annual report for Indian Commodity Exchange Limited (ICEX) for the financial year 2020-21 outlines the company's performance, operations, governance, and financial statements. **Overview of the Company:** ICEX is a recognized commodity exchange regulated by the Securities and Exchange Board of India (SEBI). It aims to provide a transparent and efficient platform for commodity derivatives trading, aligning with the objectives of the National Agricultural Policy. ICEX was the first exchange worldwide to launch Diamond Derivative contracts. In December 2019, ICEX launched ICEX MF Platform, a mutual fund platform to facilitate transactions in Mutual Funds. The company has 14 commodity derivatives contracts available for trading on its platform. It operates with 134 SEBI registered members and 1114 authorized persons, reaching 341 cities/towns across India. **Financial Performance:** * The operating income for FY 2020-21 was ₹1.42 Crore, compared to ₹3.23 Crore in FY 2019-20. * Other income decreased from ₹4.84 Crore in FY 2019-20 to ₹2.42 Crore in FY 2020-21. * The net loss after tax for the year was ₹25.67 Crore compared to ₹42.32 Crore the previous year. * The net worth as of March 31, 2021, stood at ₹103.70 Crore, including the Exchange's initial Settlement Guarantee Fund contribution. * The average daily turnover during FY 2020-21 was ₹6.54 crores (single side), with a total turnover of commodity futures traded on the Exchange standing at ₹1,666.17 crores. * The authorized share capital stood at ₹368,00,00,000, while the issued, subscribed, and paid-up share capital was ₹266,75,37,380. **Business Strategy & Outlook:** ICEX is focused on launching innovative contracts that benefit commodity users and is committed to exploring the Indian commodity derivatives market's full potential. Despite challenges such as Covid-19-induced lockdowns and a SEBI-directed forensic audit, ICEX is actively looking for ways to raise capital, cut down operating costs, and focus on businesses with immediate financial benefits. The Exchange proposes to enhance its transaction volume from 1.2 crores to 15.19 crores per annum through the mutual fund transaction platform and proposes to generate a transaction fee of Rs. 45.56 crores at the end of FY 2025-26. However, the commodity segment of the Exchange is kept in abeyance for a limited period, while the Exchange focuses on the mutual fund transaction business, subject to regulatory approvals. **Board of Directors and Key Personnel:** The Board included: * Vijay Kumar Sharma (Chairman, Public Interest Director) * Chitra Shringare (Public Interest Director) * Suresh Kumar Agarwal (Public Interest Director) * Suresh Babu Konakanchi (Shareholder Director) * Vaishali Kale (Shareholder Director) * Sanjit Prasad (Managing Director & CEO). During the year, some PIDs and the Shareholder director Mr. Ajit Mittal resigned. New PIDs and a Shareholder director were appointed to replace them. **Governance and Compliance:** * The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India. * The Company is in compliance with the requirements stipulated under Regulation 17 to 27 read with Schedule V and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations, to the extent as applicable. * The Company had a high attrition of staff from strength of 108 as on March 31, 2020 to 51 as on March 31, 2021. **Investor Protection:** * ICEX has established an Investor Protection Fund Trust (ICEX - IPF) to protect investors' interests. * The company has also set up an Investor Service Fund (ISF) as per SEBI directives, for providing minimum facilities at Investor Service Centres. **Financial Controls and Risk Management:** * The Company has sound internal financial controls commensurate to its size and nature of business. * A Risk Management Committee is in place to monitor and review risk management plans. * A Whistle Blower Policy is implemented to enable stakeholders to report genuine concerns. **Other Key Points:** * The Directors confirm compliance with the provisions of the Companies Act, 2013, and have taken proper care for maintaining accounting records, safeguarding assets, and preventing fraud. * The Auditors' Report does not contain any qualification, reservation, or adverse remark. * The trading technology of the Exchange has been provided by Millennium Information Technology which is part of London Stock Exchange. ICEX trading platform is designed for High Availability. * ICEX is the only Exchange in India which has the feature of implementing Primary and DR sites in HOT-HOT (Active – Active) mode. The notice of the Annual General Meeting included resolutions for the appointment of Ms. Vaishali Kale and Mr. Suresh Babu Konakanchi as Shareholder Directors, the re-appointment of Mr. Sanjit Prasad as Managing Director & CEO, and keeping the commodity segment under suspension while continuing with mutual fund operations on a stand-alone basis.