Multi Commodity Exchange of India (MCX) today reported a loss of Rs 34.26 crore for the April-June quarter of 2015-16 mainly due to an exceptional provision and loss of Rs 59.4 crore related to its investment in Metropolitan Stock Exchange of India.
The exchange had reported a standalone net profit of Rs 23.40 crore in the same period of last year.
Total income from operations of the exchange increased to to Rs 56.21 crore for the June quarter, as against Rs 51.59 crore in the year-ago period, it said in a filing to the BSE.
"The aggregate loss diminution and provision of Rs 59.40 crore on account of the investment in MSEI (Metropolitan Stock Exchange of India) are exceptional in nature and are accordingly disclosed in the financial results," the company said in the filing.
The company incurred a loss of Rs 13.48 crore on the sale of 14.8 crore (14,82,77,938) warrants to various parties at bids below its carrying cost, the filing added.
The loss is related to MCX' investment in MSEI in form of 40 crore equity share warrants, with a face value of Re 1 per warrant, which were convertible into equity share of Re 1 per share on or before June 19, 2015.
Sebi had given MCX, which is a shareholder in the Metropolitan Stock Exchange of India (formerly known as MCX Stock Exchange) three years until June 19, 2015 to dispose of warrants worth Rs 61.71 crore, worth Re 1 face value, which gave it a right to equity in MSEI well over the stipulated five per cent limit.
On May 25, the MCX had said that it had received offers from various investors to buy significant portions of warrants held by it in MSEI at a premium of 50 paise over the face value of Re 1 each.
Also, on an appeal of MCX against MSEI, the Bombay High Court in an interim order on Julu 9 had restrained MSEI from cancelling or extinguishing warrants worth Rs 41.60 crore held by the commodity bourse MCX.
"In view of Court order, the company has valued the warrants at its face value of Re 1 and brought down the carrying cost by Rs 42.58 crore," MCX said in the filing.
Besides, it said that pursuant to the approval of FMC vide its letter dated August 3, 2015, the Board has in its meeting held on August 8, 2015, co-opted Govinda Rao Marapalli as FMC approved Independent Director.
