S. V.GHATALIA & ASSOCIATES - National Spot Exchange Limited

S. V.GHATALIA & ASSOCIATESChartered Accountants6th Floor, Express TowersNariman PointMumbai-400 021, IndiaTel: +91 22 6657 9200Fax: +91 22 2287 6401Auditors' ReportToThe Members of National Spot Exchange LimitedI. We have audited the attached Balance Sheet of National Spot Exchange Limited ('theCompany') as at March 31, 20 II and also the Profit and Loss account and the cash flowstatement for the year ended on that date annexed thereto. These financial statements are theresponsibility of the Company's management. Our responsibility is to express an opinion onthese financial statements based on our audit.2. We conducted our audit in accordance with auditing standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.3. As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by theCentral Government of India in tenns of sub-section (4A) of Section 227 of the CompaniesAct, 1956, vve enclose in the Annexure a statement on the matters specified in paragraphs 4and 5 of the said Order.4. Without qualifying our opinion, we draw attention to note 15 of schedule 17 to the financialstatements in respect of amount recoverable from National Agricultural Co-operativeMarketing Federation of India Limited (NAFED). Based upon the Company's extensivediscussion with NAFED and legal opinion, the management believes that these amounts arefully recoverable and hence no provision for the same has been made in the financialstatements.5. Further to our comments in the Annexure referred to above, we report that:1. We have obtained all the infonnation and explanations, which to the best of ourknowledge and belief were necessary for the purposes of our audit;ii.In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;iii. The balance sheet, profit and loss account and cash flow statement dealt with by thisreport are in agreement with the books of account;iv. In our opinion, the balance sheet, profit and loss account and cash flow statement dealtwith by this report comply with the accounting standards referred to in sub-section (3C)of section 211 of the Companies Act, 1956.Page I of2

S. V.GHATALIA & ASSOCIATESChartered Accountantsv. On the basis ofthe written representations received from the directors, as on March 31,20 I I, and taken on record by the Board of Directors, we report that none of the directorsis disqualified as on March 31, 2011 from being appointed as a director in tenns ofclause (g) of sub-section (I) of section 274 of the Companies Act, 1956.vi. In our opinion and to the best of our infonnation and according to the explanations givento us, the said accounts give the infonnation required by the Companies Act, 1956, in themanner so required and give a true and fair view in confonnity with the accountingprinciples generally accepted in India;a) in the case of the balance sheet, of the state of affairs of the Company as at March31, 2011;b) in the case of the profit and loss account, of the profit for the year ended on that date;andc) in the case of cash flow statement, of the cash flows for the year ended on that date.S-V ·~'"A "' ~cA.~For S.V. GHAT ALIA & ASSOCIATESFirm registration number: I 03162 WChartered AccountantsOn~perAmit Kabra -PartnerMembership No.: 094533 ~--/.;~;'0: ~-.~~~. f(';-~·> ' ~·(·,:'':"',,Place:Mumbat .£'~' · · ~,'.\Date:2 5 MAY zfi 1l (?"' ./ >:\\\,\''Page2of2

S. V.GHATALIA & ASSOCIATESChartered AccountantsAnnexure referred to in paragraph 3 of our report of even dateRe: National Spot Exchange Limited ('the Company')(i) (a) The Company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.(b) All fixed assets were physically verified by the management in the previous year inaccordance with a planned programme of verifying them once in three years which, inour opinion, is reasonable having regard to the size of the Company and the nature of itsassets. As informed, no material discrepancies were noticed on such verification.(c) There was no substantial disposal of fixed assets during the year.(ii) (a) The management has conducted physical verification of inventory at reasonable intervalsduring the year.(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.(c) The Company is maintaining proper records of inventory and no material discrepancieswere noticed on physical verification.(iii) (a) The Company has granted loan to one company covered in the register maintained undersection 301 of the Companies Act, 1956. The maximum amount involved during the yearwas Rs. 45,200,000/- and the year- end balance ofloans granted to such party is Rs.NIL.(b) In our opinion and according to the information and explanations given to us, the rate ofinterest and other terms and conditions for such loans are not prima facie prejudicial tothe interest of the Company.(c) The loans granted are re-payable on demand and have been fully repaid during the year.The payment of interest has been regular.(d) There is no overdue amount of loans granted to companies listed m the registermaintained under section 301 of the Companies Act, 1956.(e) The Company had taken unsecured loan from one company covered in the registermaintained under section 301 of the Companies Act, 1956. The maximum amountinvolved during the year was Rs. 390,000,000 and the year-end balance of loans takenfrom such parties was Rs. 290,000,000.(f) In our opinion and according to the information and explanations given to us, the rate ofinterest and other terms and conditions for such loans are not prima facie prejudicial tothe interest of the Company.(g) The loans taken are re-payable on demand. As informed, the loans are repaid as andwhen demanded, the payment of interest has been regular.Page I of4

S. V.GHATALIA & ASSOCIATESChartered Accountants(iv)In our opinion and according to the information and explanations given to us, there is anadequate internal control system commensurate with the size of the Company and thenature of its business, for the purchase of inventory and fixed assets and for the sale ofgoods and services. During the course of our audit, no major weakness has been noticedin the internal control system in respect of these areas. During the course of our audit, wehave not observed any continuing failure to correct major weakness in internal controlsystem of the company.(v) (a) According to the information and explanations provided by the management, we are ofthe opinion that the particulars of contracts or arrangements referred to in section 301 ofthe Act that need to be entered into the register maintained under section 301 have beenso entered.(b) In respect of transactions made in pursuance of such contracts or arrangements exceedingvalue of Rupees five lakhs entered into during the financial year, because of the uniqueand specialized nature of the items involved and absence of any comparable prices, weare unable to comment whether the transactions were made at prevailing market prices atthe relevant time.(vi)The Company has not accepted any deposits from the public.(vii)In our opinion, the Company has an internal audit system commensurate with the sizeand nature of its business.(viii)To the best of our knowledge and as explained, the Central Government has notprescribed maintenance of cost records under clause (d) of sub-section ( 1) of section 209of the Companies Act, 1956 for the products of the Company.(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutorydues including provident fund, investor education and protection fund, income-tax, salestax,wealth-tax, service tax, cess and other material statutory dues applicable to it. Theprovisions relating to employees' state insurance, customs duty, and excise duty are notapplicable to the Company.Further, since the Central Government has till date not prescribed the amount of cesspayable under section 441 A of the Companies Act, 1956, we are not in a position tocomment upon the regularity or otherwise of the company in depositing the same.(b) According to the information and explanations given to us, no undisputed dues in respectof provident fund, investor education and protection fund, income-tax, service tax, salestax,cess and other undisputed statutory dues were outstanding, at the year end, for aperiod of more than six months from the date they became payable. Undisputed statutorydues for Wealth-Tax which were outstanding, at the year end for a period of more thansix months from the date they became payable are as follows:Name of Nature of the Amount Period to Due Date Date ofthe statute dues (Rs.) which the PaymentamountrelatesWealth Wealth tax 6,700 AY 2009- 30/09/2009 27/04/2011Tax Act 10Pagel of4

S. V.GHATALIA & ASSOCIATESChartered AccountantsWealthTax ActWealth tax 4,400 A Y 2010- 3010912010112710412011As, informed, the provisions relating to employees' state insurance, customs duty, andexcise duty are not applicable to the Company.(c) According to the information and explanation given to us, there are no dues of incometax, sales-tax, wealth tax, service tax, customs duty, excise duty and cess which have notbeen deposited on account of any dispute.(x)The Company's accumulated losses at the end of the financial year are less than fifty percent of its net worth and it has not incurred cash loss during the year. In the immediatelypreceding financial year the company had incurred cash loss.(xi)Based on our audit procedures and as per the information and explanations given by themanagement, we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution, bank or debenture holders.(xii)According to the information and explanations given to us and based on the documentsand records produced to us, the Company has not granted loans and advances on thebasis of security by way of pledge of shares, debentures and other securities.(xiii)In our opinion, the Company is not a chit fund or a nidhi I mutual benefit fund I society.Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order,2003 (as amended) are not applicable to the Company.(xiv)In respect of dealing/trading in shares, securities, debentures and other investments, inour opinion and according to the information and explanations given to us, properrecords have been maintained of the transactions and contracts and timely entries havebeen made therein. The shares, securities, debentures and other investments have beenheld by the Company, in its own name.(xv)According to the information and explanations given to us, the Company has not givenany guarantee for loans taken by others from bank or financial institutions.(xvi)Based on information and explanations given to us by the management, term loans wereapplied for the purpose for which the loans were obtained.(xvii)According to the information and explanations given to us and on an overall examinationof the balance sheet of the Company, we report that no funds raised on short-term basishave been used for long-term investment.(xviii) The Company has not made any preferential allotment of shares to parties or companiescovered in the register maintained under section 301 of the Companies Act, 1956.(xix)The Company has not issued any debentures during the year and did not have anyoutstanding debentures during the year.The Company has not raised any money through a public issue during the year.Page3 of4

S. V.GHATALIA & ASSOCIATESChartered Accountants(xxi)Based upon the audit procedures performed for the purpose of reporting the true and fairview of the financial statements and as per the information and explanations given by themanagement, we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.s:·.v.~~ tf~c~'~For S.V. Ghatalia & AssociatesFirm registration number: 1 03162WChartered Accountants()f)~per Amit Kabra ·PartnerMembership No.: 094533Place:MumbaiDate:Z 5 ~1AY l.U1lPage 4 of4

NATIONAL SPOT EXCHANGE LIMITEDBALANCE SHEET AS AT MARCH 31 2011'Schedules As at March As at March31, 2011 31, 2010Rs.Rs.SOURCES OF FUNDSShareholders' FundsShare capital 1 450 000 000 450,000,000450 000 000 450 000 000Loan FundsSecured loans 2 563,000,000 -Unsecured loans 3 293 020 672 203,514,344856 020 672 203 514 344Deferred Tax Liability - -TOTAL 1 306 020 672 653,514 344APPLICATION OF FUNDSFixed Assets 4Gross block 325,579,925 314,863,190Less : Accumulated Depreciation 114,328,222 58,983,404Net block 211,251 '703 255,879,786Capital work-in-progress including capital advances 1 987 594 1,987,594213 239 297 257 867 380Investments 5 238,508,872 10,610,000Current Assets, Loans and AdvancesSundry debtors 6 896,960,372 12,058,398Cash and Bank balances 7 169,763,018 92,976,570Other current assets 8 - 863,997Loans and advances 9 569 806 061 310,179,857(A) 1 636 529 451 416 078 822Less: Current Liabilities and ProvisionsCurrent liabilities 10 873,972,637 149' 169' 127Provisions 11 4163 834 3,825,754{B) 878 136 471 152,994 881Net Current Assets (A- B) 758 392 980 263 083 941Debit Balance in Profit and Loss Account 95 879 523 121,953 023TOTAL 1 ,306,020,672 653,514,344Notes to Accounts 17The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.As per our report of even dateS v. &i~~

INCOMENATIONAL SPOT EXCHANGE LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31,2011Schedules For the Year For the Year endedended March March31,2011 31,2010Rs.Rs.Sales 1,228,318,866 -Operating Income 12 299,196,014 177,046,565Other Income 13 21 081 782 33 184 370TOTAL 1 548 596 662 210 230 935EXPENDITUREPurchase of Commodities 1 '133,452,267 -Personnel expenses 14 79,938,851 67,637,934Operating and other expenses 15 222,450,502 156,168,327Depreciation/amortization 4 55,366,011 50,601,059Financial expenses 16 31 315 531 125 345TOTAL 1 522 523 162 274 532 665Profit I (Loss) before tax 26,073,500 (64,301 ,730)Provision for TaxCurrent tax - -Fringe benefit tax - -Deferred tax (Refer Note 6 of Schedule 17)- -Net profit/ (Loss) 26,073,500 (64,301 '730)Balance brought forward from previous year (121 953 0231 is? 651 293\Profit available for appropriation 195 879 5231 1121 953 023Balance carried to Balance Sheet (95,879,523) (121 ,953,023)Earnings per shareBasic and Diluted (Nominal value of shares Rs. 10 (Previous Year: Rs. 10) 0.58 (1.88)Notes to Accounts 17The schedules referred to above and the notes to accounts form an integral part of the Profit and Loss Account.As per our report of even date5.V. ~~ ~ ~(~,/~For S.V. Ghatalia & AssociatesFirm registration number: 103162WCha/j(-\ccountantsper .kft' K~b~For and on behalf of the Board of Directors of.Nationa.l~;7Spot Exchange Limited;;;,/C~ ~d£A/ ..V. Hariharan Shreekant JavalgekarPartnerMembership No. : 094533Place : MumbaiDate:Whole Time DirectorN n ec, l"\ 1) .. ,.Nirav PandyaCompany Secretary~·Director

NATIONAL SPOT EXCHANGE LIMITEDCASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31 ,2011A. Cash Flow from Operating Activities before taxationNet profit before taxationAdjustments for-DepreciationDividend IncomeInterest ExpensesInterest IncomeProfit on sale of investmentsLoss on sale of fixed assetFor the year ended For the year endedMarch 31, 2011 March 31, 201026,073,500 (64,301 ,730)55,366,011 50,601,059(4,716,573) (3,018,646)31,315,531 125,345(5,217,543) (11 ,493, 172)- (51,585)68,282 -Operating profit/ (loss) before working capital changesMovements in working capital :Decrease I (Increase) in other current assetsDecrease I (Increase) in sundry debtorsDecrease I (Increase) in Loans and AdvancesIncrease I (Decrease) in current liabilities & provisionsCash generated from operationsDirect taxes paid (net of refunds)102,889,208 (28, 138,729863,997 -(884,901 ,974) 1,753,353,342(249,603,278) (27, 769,455)704,034,740 (737,618,276(326,717,305 959,826,88210,022,926 13,034,791Net Cash from Operating Activities(336,740,231) 946,792,091B. Cash Flow from Investing ActivitiesPurchase of fixed assetsProceeds from sale of Fixed AssetsPurchase of Investments( including dividend reinvestment)Proceeds from sale of InvestmentsPurchase of Investments in subsidiary CompanyDeposits( with maturity more than 3 months)Proceeds of deposits maturedDividend from InvestmentsInterest IncomeNet Cash Used in Investing Activities(10,870,002) (233, 117 ,458)63,791 -(1,113,217,572) (2,035,576,892)972,436,791 2,085,586,268(87, 118,090) (1 0,000,000)(62,745,691) (57, 152,491)55,107,491 50,000,0004,716,573 3,018,6464,463,247 11,773,918(237, 163,462 (185,468,011C. Cash Flow from Financing ActivitiesProceeds from short term borrowingsRepayment of short term borrowingsProceeds from long term borrowingsRepayment of long term borrowingsProceeds from issuance of share capitalInterest PaidNet Cash from Financing Activities663,000,000 200,000,000(100,000,000) (1 ,500,000,000)90,000,000(493,672)- 150,000,000(10,208,683 (59,592642,297,645 (1,150,059,592Net Increase in Cash and Cash Equivalents (A+B+C)Cash and Cash Equivalents (Opening Balance)Cash and Cash Equivalents (Closing Balance)Components of cash and cash equivalentsCash and Cheques on HandBank Balances:- In Current Accounts- In Deposits Accounts (Maturing Less than 3 Months)- Interest accrued on fixed depositsCash and Cash Equivalents in Cash Flow Statement- In Deposit Accounts (Maturing More than 3 Months)- Interest accrued on fixed depositsCash and bank BalanceNote: The above cashftow statement has been prepared under the indirect methodsetout in Accounting Standard 3 - Cash Flow Statement, notified persuant to theCompanies (Accounting Standards Rules), 2006 (as am mended).As per our report of even dateS.\J· ~ 4 ~&.-~For S.V. Ghatalia & AssociatesFirm registration number: 103162WCharncountantsper~K~Partner ' -Membership No: 094533Place : MumbaiDate:Z. 5 NAY ZD11.68,393,952 (388,735,513)30,719,010 419,454,52199,112,962 30,719,01061,870 38,52099,051,092 30,680,490-99,112,962 30,719,01067,790,692 60,152,4912,859,364 2,105,069169,763,018 92,976,570For and on behalf of the Board of Directors ofNational Spot Exchange Limited J:9P- ~/V. Hariharan Shreekant JavalgekarWhole Time Director Director}\J \''\ '\ 1 c).Y\ :) C< )Nirav PandyaCompany Secretary

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSAs at March As at March31,2011 31,2010Rs.Rs.Schedule 1 : Share capitalAuthorised50,000,000 (Previous year: 50,000,000) Equity Shares of Rs.1 0/- each 500,000,000 500,000,000Issued45,000,000 (Previous year: 45,000,000) Equity Shares of Rs.1 0/- each 450 000 000 450,000,000Subscribed & Paid up45,000,000 (Previous year : 45,000,000) Equity Shares of Rs.1 0/- each fully paid 450,000,000 450,000,000Of the above:(i) 44,999,900 (Previous year: 44,999,900) Equity shares of Rs.1 0/- each is held by 449,999,000 449,999,000Financial Technologies (India) Limited, a Holding Company.(ii)1 00 (Previous year: 1 OO)Equity shares of Rs.1 0 each is held by National Agricultural 1,000 1,000Cooperative Marketing Federation of India Limited (NAFED)450 000 000 450,000,000Schedule 2 : Secured loansAs at March As at March31,2011 31,2010Rs.Rs.Secured Loan from bank 563,000,000 -(The loan is secured against first charge by way of hypothecation of the Company'sentire stocks of raw materials, semi finished and finished goods, consumable stores andspares and such other movables including book- debts, bills whether documentary orclean, oustanding monies, receivables, both present and future.)563 000 000 -563 000 000 -Schedule 3 : Unsecured loansAs at March As at March31,2011 31,2010Rs.Rs.Long-term loans and advancesFrom Holding Company 90,000,000Short-term loans and advancesFrom Holding Company 200,000,000 200,000,000(Due within one year Rs. 200,000,000 (Previous Year Rs. 200,000,000))- Security Deposits 3,020,672 3,514,344293 020 672 203,514,344

.~.-----~~----- -~--.-· --·--~~---,-----~~-~ ~----------~~-· -----~·-~ATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTS-- ----------·---~--· - - - ----~-----~~- ---~---·--_..____ ----------,----·II =t -=---=-:= T---- ----+---SCHEDULE 4 : Fixed Assets--t- =----~=-- =--=f:--r.Gross block Depreciation Net block Net BlockFixed Assets As at Additions Deductions As at As atDeductions As at As atFor The YearAs at ~April1,2010 during the year durinq the vear March 31)011 Apri11,2010 during the year March 31,2011 March 31,2011 March 31,2010TANGIBLE ASSETS:- r----:·~--Leasehold Premises 3,284,479 3,284,479 934,347 633,668 1,568,0,~ ·- .1.716,464 2,350,132Office Equipments 2,063,378 -- c·-1,232,917 86,800 3,209,495 269,380 96,503- ..--·-- --· 2,859,464 1,793,998--f---·-- --15,8~~ ---· 350,031---- f-----Computers Hardware17,687,810 2,407,520 66,467 20,028,863 5,224,635 2,997,1715,341 -·-8 216-465 _11,812,398 12,463,175--""--·-' ~·-~--- -----109-~-~Furnitures & Fixtures548-~-_129~5484,437·--- -- .~-----~ --- 50,76() 1--- 58,788 63,22~------Vehicles--~~--- ~·f------- ~··-,~ f---~~-- f--- 2,425, ---:.~-:?3. 7_69·- 16~ 1--------=----·-------- -·--~-25, 16~ 493,379 230,390 - 1,701,394 1,931,784·-·---·- --VSAT f--~~_917,:232--1-83,449-----=-- ~··-- 917,232_ _____ 167,623 - __ 35_1_.072. 566,160 ___]49,60.9_-- ·-r-------·--------INTANGIBLE ASSETS: __ ~ _·-- ·---·~·--- -·-.-·-- --------------f----- -- -------- ----- ---------bOther than Internally Generated) _-·· -- -- -- -- ---~-=c- --- -·-- - -- -- -----------Trade Mark __ ~§il,50CJ. .. _. ~-10,000_ -·- ___ _:____ - ~78,500---------=-- - 70,6_'!§_ 27,412_98,,()58--·- ·-·--=·- ·--~ ---~7,854--~------- --- -·- - -1--·----------·- - --------- - --·-- ------Computer Software==~---:-· _ --~-~88,107,080 ~=-51,72Z,07T r--5D92,98I-- -~·19,5§§_ --·-.--.- - - ?25,326,645 - 101.,970,052 ].92,356,593 _]36,330'009,_---------TOTAL 314,863,190 10,870,002 153,267 325,579,925 58,983,404 55,366,012 21,193 114,328,222 211,251,703 255,879,786-·--· f-----~·------- - ·----· -·---··--·-As at March 31, 2010 83,683,406 231,179,784 314,863,190 8,382,345 50,601,058 58,983,404 255,879,784--- _ _l- T ----1-----r-~ -~~ --+---~- ,-------- --------- -- ----·~(~~:~'"~~ "':_--., "i\A&~ '1;- '"1, .-.-- "\.O'o\,:: ... ~' \ ~ \'·t ~•!(.': ~~::-· '~'1 J1 ::~)1~ :.r 1 ..... , If~:-.'!' :.. .~,:

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSSchedule 5 : InvestmentsLong Term Investments (At cost)A. Other than tradeUnquotedGovernment Securities :National Savings CertificateAs at March31, 2011Rs.111,000As at March31,2010Rs.110,000/}~tf~':~i;.,:, ~~'Sf?. );::~.'j~. ' ' '(.).f.i·,.. j i_. ~,• .:.-!..,-·B. In Subsidiary CompaniesUnquoted, 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 valuePurchase and Redemption during the YearICICI Prudential Liquid Fund Systematic Investment Plan Daily Dividend ReinvestmentReliance Liquidity Fund-Daily Dividend Reinvestment PlanPurchaseUnits5,312,652.105058,153,473.8600Amount531,385,251581,831,32171,240,85026.377.24097.729.090140.779.782238.508.872140,779,78210,500,00010,610,00010.610.000RedemptionUnitsAmount3,905,172.3730 390,605,46958,153,473.8600 581 ,831 ,321Purchase and Redemption during the Previous YearCanara Robeco Liquid - Institutional Plan -Daily Dividend ReinvestmentICICI Prudential Liquid Fund Systematic Investment Plan Daily Dividend ReinvestmentLIC MF Liquid Fund Daily Dividend ReinvestmentReliance Liquidity Fund-Daily Dividend Reinvestment PlanReliance Money Manager Fund-Institutional Plan -Daily Dividend ReinvestmentReligare Liquid Fund Institutional Plan -Daily Dividend ReinvestmentReligare Ultra Short Term Fund Institutional Plan Daily Dividend ReinvestmentUTI Liquid Cash Institutional Plan -Daily Dividend ReinvestmentPurchaseUnits9,961,795.515050,312,502.213020,997,288.919093 '1 07,563.4200100,054.84907,995,707.51508,010,552.38309,814.3510Amount100,026,389503,170,617230,552,332931,364,268100,168,55280,008,24880,231,29010,005,197RedemptionUnitsAmount9,961,795.5140 100,026,38950,312,502.2130 503,222,20320,997,288.9190 230,552,33298,106,792.6920 981,372,058100,054.8490 100,168,5517,995,707.5150 80,008,2488,010,552.3830 80,231,2909,814.3510 10,005,198-C·~·.8 1'~·,...~,... .(>..-~ ~"""'N •

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSAs at March31,2011Rs.As at March31,2010Rs.Schedule 6 : Sundry debtorsDebts outstanding for a period exceeding six months(Secured, considered good)(Unsecured, considered good)(Unsecured ,considered doubtful)10,893,3644,077,170Other debts(Secured, considered good)(Unsecured, considered good)Less : Provision for doubtful debtsIncluded in Sundry Debtors are:Dues from companies under the same managementIndian Bullion Market Association Limited(Maximum amount outstanding during the year Rs.16,02,036 (Previous yearRs.64,51 ,476)Financial Technologies (India) Limited(Maximum amount outstanding during the year Rs.250,000 (Previous yearRs.2,361 ,862)National Bulk Handling Corporation Limited(Maximum amount outstanding during the year Rs.30,52,646 (Previous yearRs.21,875)886,856,877897,750,241789 869896 960 372250,000291,40554 ,4057,981,22812,058,39812,058,398543,000Schedule 7 : Cash and bank balancesCash on handBalances with scheduled Banks:On current accountsOn deposit accounts ( Refer Note 16 of schedule 17)As at March31,2011Rs.61,87099,051,09270,650,056169 763 018As at March31,2010Rs.38,52030,680,49062,257,56092,976,570Schedule 8: Other current assetsTraded Goods (RSA Tokens)As at March31,2011Rs.As at March31,2010Rs.863,997863,997

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSAs at March As at March31,2011 31,2010Rs.Rs.Schedule 9 : Loans and advancesUnsecured, considered goodAdvances recoverable in cash or kind or for value to be received 310,897,172 38,174,798Insurance claims receivables (Refer Note 15 of schedule 17) 100,889,700 100,889,700Recoverable from NAFED (Refer Note 15 of schedule 17) 94,828,691 148,932,336Deposits - Office Rent 6,906,280 6,906,280Deposits - Warehouse 685,264 1,422,549Deposits - others 619,777 18,400VAT Credit (lnput)Receivable 31,997,604 46,801Advance Tax 22,005,815 11,982,888Service Tax Credit (Net) 975 758 1,806,105569 806 061 310 179 857Schedule 10: Current liabilitiesAs at March As at March31,2011 31,2010Rs.Rs.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 18,674,366Amount 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 2,000,000Advances from Customers 199,018 135,464Other Member Liabilities 4,252,832 11,486,876Other Liabilities 49 781 783 3,598,491873 972 637 149 169 127Schedule 11 : ProvisionsAs at March As at March31,2011 31,2010Rs.Rs.Provision for leave encashments 3,364,592 2,740,386Provision for gratuity 799,242 1,085,3684 163 834 3 825,754

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSSchedule 12: Operating IncomeTransaction FeesAdmission FeesApplication Processing FeesAnnual Subscription FeesDelivery FeesProcurement SeNice chargesStorage & Warehousing IncomeFor the Yearended March31,2011Rs.95,411,49956,865,000936,5009,754,97287,338,39114,912,61133 977 041299 196 014For the Yea rended Marc h31,2010Rs.7,008,4 4821,450,0 00277,0 007,405,0 0049,712,4 0763,479,0 5727,714,6 53177 046 5 65Schedule 13 : Other IncomeInterestBank deposits (TDS Rs.4,77,099 Previous year: Rs.18,38,052)OthersDividend from current investments - units of mutual fundsDepository participant chargesBusiness Support ChargesMiscellaneous incomeFor the Yearended March31,2011Rs.4,787,830429,7134,716,5738,001,0003 146 66621 081 782For the Yea rended Marc h31,2010Rs.11,437,16656,0063,018,6461,800,00015,000,0001,872,55233,184 370Schedule 14: Personnel expensesSalaries, wages and bonus (Refer note 14 of schedule 17)Contribution to provident fundGratuity ExpensesStaff welfare expensesFor the Yearended March31,2011Rs.76,799,9571,669,824583,510885 56079 938 851For the Yearended March31,2010Rs.64,607,6791,223,9171,352,107454,23167 637 934-

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSSchedule 15: Operating and other expensesFor the Yearended MarchFor the Yearended March31,2011 31,2010Rs.Rs.Electricity Charges 4,258,560 4,490,508Rent 68,240,398 63,847,500Rates and taxes 545,551 7,739,774Insurance 1,477,761 888,775Handling & Transportation 322,736 6,759,477Repairs and maintenance 2,217,677 1,254,887Advertising and sales promotion 13,909,405 5,451,117Travelling and conveyance 6,673,086 6,900,451Communication costs 4,299,397 3,347,049Brokerage 30,000,000Legal and professional fees 4,767,913 5,271,037Business/ Software support charges 69,309,165 41,237,937Payment to Auditors (Including Service Tax}Audit fee 937,550 772,100Tax audit feeMiscellaneous expenses * 15 491 303 8,207,715222 450 502 156,168,327*Miscellaneous expenses include prior period expenses of Rs.1 ,402,853

NATIONAL SPOT EXCHANGE LIMITEDSCHEDULES FORMING PART OF THE ACCOUNTSFor the Year For the Yearended March ended March31,2011 31,2010Rs.Rs.Schedule 16: Financial expensesInterest-on banks 10,198,825 47,795-others 21116 706 77,55031 315 531 125 345

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11Schedule- 17: Notes to Accounts:1. Nature of OperationsNational Spot Exchange is a pan India self regulated electronic spot exchange offeringtrading in various agricultural, metals and industrial commodities through its platform. Italso offers customized procurement solutions to government agencies and privatecompanies. It also offers services like warehousing and collateral management services tomarket participants2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESA. Basis of preparationThe financial statements have been prepared to comply in all material respects with theAccounting Standards notified by Companies (Accounting Standards) Rules, 2006, (asamended) and the relevant provisions of the Companies Act, 1956 (the Act). The financialstatements 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 estimatesThe preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent liabilities at thedate 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 eventsand actions, actual results could differ from these estimates.C. Fixed AssetsFixed assets are stated at cost, less accumulated depreciation and impairment losses ifany. Cost comprises the purchase price and any attributable cost of bringing the asset toits working condition for its intended use.D. DepreciationDepreciation is provided using the Straight Line Method as per the useful lives of theassets estimated by the management, or at the rates prescribed under schedule XIV ofthe 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 LIMITEDFor The Year Ended 2010-11In case of assets acquired during the year from the group companies depreciation hasbeen charged based on the residual life of the asset.Depreciation in respect of assets acquired during the year whose actual cost does notexceed Rs.S,OOO has been provided at 100%.Leasehold improvements are amortized over the primary period underlying lease of theoffice premises or estimated useful life, whichever is lower.E. ImpairmentThe carrying amounts of assets are reviewed at each balance sheet date if there is anyindication of impairment based on internal/external factors. An impairment loss isrecognized 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. Inassessing value in use, the estimated future cash flows are discounted to their presentvalue at the weighted average cost of capital.F. Intangible assetsTrademarks are amortized over ten years considering their related useful lives. Software isamortized at the rate of 16.21% from the date of installation. Any additions to the basesoftware are amortized over the remaining useful life of the software.G. LeasesWhere the Company is the lesseeLeases where the lessor effectively retains substantially all the risks and benefits ofownership of the leased item, are classified as operating leases. Operating lease paymentsare recognized as an expense in the Profit and Loss account on a straight-line basis overthe lease term.Where the Company is the lessorAssets subject to operating leases are included in fixed assets. Lease income is recognisedin the Profit and Loss Account on a straight-line basis over the lease term. Costs, includingdepreciation are recognised as an expense in the Profit and Loss Account. Initial directcosts such as legal costs, brokerage costs, etc. are recognised immediately in the Profitand Loss Account.H. InvestmentsInvestments that are readily realizable and intended to be held for not more than a yearare classified as current investments. All other investments are classified as long-terminvestments. Current investments are carried at lower of cost and fair value determinedon an individual investment basis. Long-term investments are carried at cost.

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11I. Revenue RecognitionRevenue is recognized to the extent that it is probable that the economic benefits will flowto the Company and the revenue can be reliably measured.Sale of goodsRevenue is recognized when the significant risks and rewards of ownership of the goodshave 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 entireamount of liability raised during the year.Admission FeesAdmission Fees (non refundable) and Processing Fees from new members for joining theexchange are recognized when the membership is approved. Amount received fromprospective members towards admission fees is forfeited and recognized as income in theyear when allotment of membership is pending for a period more than one year onaccount of non receipt of documents.Annual subscription feesAnnual subscription fees are charged upfront and recognized on accrual basis in thefinancial year in which it is charged.Transaction feesTransaction fees are charged to members based on the volume of transactions enteredinto by the members through the exchange. These are accrued when orders placed bymembers on the network are matched and confirmed.Delivery feesDelivery fees are charged to members on the basis of trades executed. In case of sellermembers, 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 theexchange/exchange accredited warehouses.Storage chargesStorage charges are accrued as income on the completion of the storage cycle and areexclusive of service tax, if any.Procurement serviceProcurement service charges are levied on value of procurement and are recognized onaccrual basis on completion of procurement and processing activity. Commitment fees arerecognized upfront on receipt as per the terms of agreement with clients./':>:a:.::' ..: .1 ito,:, ···v. .:

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11Deposits (non refundable)Networking equipments deposits (non refundable) are treated as income in the year inwhich it is received.Dividend incomeDividend income is recognized when the Company's right to receive dividend isestablished.Interest incomeRevenue is recognised on a time proportion basis taking into account the amountoutstanding and the rate applicable.J. Foreign Currency Transactions(i) Initial RecognitionForeign currency transactions are recorded in the reporting currency, by applying to theforeign currency amount the exchange rate between the reporting currency and theforeign currency at the date of the transaction.(ii) ConversionForeign currency monetary items are reported using the closing rate. Non-monetary itemswhich are carried in terms of historical cost denominated in a foreign currency arereported using the exchange rate at the date of the transaction; and non-monetary itemswhich are carried at fair value or other similar valuation denominated in a foreign currencyare reported using the exchange rates that existed when the values were determined.(iii) Exchange DifferencesExchange differences arising on a monetary item that, in substance, form part of theCompany's net investment in a non-integral foreign operation is accumulated in a foreigncurrency translation reserve in the financial statements until the disposal of the netinvestment, at which time they are recognized as income or as expenses.Exchange differences arising on the settlement of monetary items are recognized asincome or as expenses in the year in which they arise.K. Retirement Benefits and Other Employee BenefitsRetirement benefits in the form of Provident Fund is a defined contribution scheme andthe contribution is charged to the Profit and Loss Account of the year when thecontributions to the provident fund is due. There are no other obligations other than thecontribution 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 retirementis provided on actual basis in accordance with the Company's scheme in this respect.

•• ~~,:-~:.:._ '~ >NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11Gratuity liability are defined benefit obligation and is provided for on the basis of anactuarial valuation on projected unit method made at the end of each year.Short term compensated absences are provided for based on estimates. Long termcompensated absences are provided for based on actuarial valuation at year end. Theactuarial valuation is done as per projected unit credit method.Actuarial gains/losses are immediately taken to profit and loss account and are notdeferred.L. Income TaxesTax expense comprises of current, deferred and fringe benefit tax. Current income tax andfringe benefit tax is measured at the amount expected to be paid to the tax authorities inaccordance with the Income-tax Act, 1961 enacted in India. Deferred income taxesreflects the impact of current year timing differences between taxable income andaccounting 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 substantivelyenacted at the balance sheet date. Deferred tax assets and deferred tax liabilities areoffset, if a legally enforceable right exists to set off current tax assets against current taxliabilities and the deferred tax assets and deferred tax liabilities relate to the taxes onincome levied by same governing taxation laws. Deferred tax assets are recognized onlyto the extent that there is reasonable certainty that sufficient future taxable income will beavailable against which such deferred tax assets can be realized. In situations where theCompany has unabsorbed depreciation or carry forward tax losses, all deferred tax assetsare recognized only if there is virtual certainty supported by convincing evidence that theycan be realized against future taxable profits.At each balance sheet date the Company re-assesses unrecognized deferred tax assets. Itrecognizes unrecognized deferred tax assets to the extent that it has become reasonablycertain or virtually certain, as the case may be that sufficient future taxable income will beavailable against which such deferred tax assets can be realized.The carrying amount of deferred tax assets are reviewed at each balance sheet date. TheCompany writes-down the carrying amount of a deferred tax asset to the extent that it isno longer reasonably certain or virtually certain, as the case may be, that sufficient futuretaxable income will be available against which deferred tax asset can be realized. Anysuch write-down is reversed to the extent that it becomes reasonably certain or virtuallycertain, as the case may be, that sufficient future taxable income will be available.M. Segment Reporting PoliciesIdentification of segments:The Company's operating businesses are organized and managed separately according tothe nature of products and services provided, with each segment representing a strategicbusiness unit that offers different products and serves different markets. The analysis ofgeographical segments is based on the areas in which major operating divisions of theCompany operate ./'"": ·~'--·"'' & ·)."'·"-··_/\a-·---~........:_' ~ '~ ~! ~' .;' .; 1\-;' .J ·,I •' i'\ ·..,' ~ . . ...·.... ·.·

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11Allocation of common costs :Common allocable costs are allocated to each segment according to the relativecontribution of each segment to the total common costs.Unallocated items :Includes general corporate income and expense items which are not allocated to anybusiness segment.Segment Policies :The Company prepares its segment information in conformity with the accounting policiesadopted for preparing and presenting the financial statements of the Company as a whole.N. Earnings Per ShareBasic earnings per share are calculated by dividing the net profit or loss for the yearattributable to equity shareholders by the weighted average number of equity sharesoutstanding during the year. For the purpose of calculating diluted earnings per share, thenet profit or loss for the period attributable to equity shareholders and the weightedaverage number of shares outstanding during the year are adjusted for the effects of alldilutive potential equity shares.0. ProvisionsA provision is recognized when an enterprise has a present obligation as a result of pastevent; 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 itspresent value and are determined based on best estimate required to settle the obligationat the balance sheet date. These are reviewed at each balance sheet date and adjusted toreflect the current best estimates.P. Cash and Cash EquivalentsCash and cash equivalents for the purposes of cash flow statement comprise cash at bankand in hand and short-term investments with an original maturity of three months or less.3. Segment InformationBusiness 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 LIMITEDFor The Year Ended 2010-11Warehousing & storage income: Includes storages of agricultural products, fumigation,quality certification etc.Procurement Services: Procurement services consists of private procurement on behalfof various corporate entities acting as an agent by procuring different commodities likeCastor seed, Cotton Wash Oil etc. through different sources and locations by renderingadded services like quality testing, grading, sorting, loan syndication and offering othercustomized solutions.Trading Services: Trading services include purchase of different commodities like cotton seedwash oil, sugar, castor seed etc. from different parties and supplying the same to variouscustomers.Business SegmentsRefer annexure A4. Related partiesNames of related parties where control exists irrespective of whethertransactions have occurred or not:Holding Company:Subsidiary Company:Financial Technologies (India) LimitedIndian Bullion Market Association LimitedNames of other related parties with whom transactions have taken place duringthe yearFellow Subsidiaries:Associates:1 Atom Technologies Limited (atom)2 National Bulk Handling Corporation Limited (NBHC)3 Tickerplant Limited (Tickerplant)4 Financial Technologies Communications Limited _(_FTCLl5 Credit Market Services Limited (CMSL)1 Multi Commodity Exchange of India Limited _(_MCXl2 MCX SX Stock Exchange _(_MCX SXlKey Management PersonnelJignesh ShahDirectorV. Hariharan Whole Time DirectorAnjani SinhaChief Executive Officer

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-115. Transactions with Related PartyRefer annexure B6. In accordance with the Accounting Standard 22 on Accounting for Taxes on Income, theCompany has made adjustments in its accounts for deferred tax liabilities/ assetsThe tax effects of significant temporary differences that resulted in deferred tax assetsand liabilities areDeferred Tax AssetAs at March As at March31,2011 31,2010Amount (Rs.) Amount (Rs.)Provision for Gratuity 271,662 368,917Provision for Leave encashment 1,143,625 931,457Preliminary Expenses - -Carry Forward Losses and unabsorbed 51,315,011 45,216,201depreciation*Sub Total (a) 52,730,298 46,516,575Deferred Tax LiabilityDepreciation and other differences in block of 52,730,298 46,516,575fixed assets (b)Net Deferred Tax Asset* (a-b) - -* The Company has recognized deferred tax asset on the accumulated carry forwardbusiness losses and unabsorbed depreciation only to the extent of net deferred taxliability. Deferred tax asset on balance amount of accumulated carry forward businesslosses and unabsorbed depreciation is not recognized as the Company is unable tosubstantiate virtual certainty of future profits against which such asset can be realized.7. LeasesIn case of assets taken on leaseThe Company has entered into cancellable leasing arrangements for it's offices andwarehouses. The lease rental of Rs.54,523,690 (Previous Year Rs.12,485,388) has beenincluded under the head Rent under Schedule 14 in Profit & Loss Account.

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11The Company has entered into non-cancellable leasing arrangements for it's offices andwarehouses. The lease rental of Rs.12,775,485 (Previous Year Rs. 49,644,162) has beenincluded under the head Rent under Schedule 14 in Profit & Loss Account.As at March As at March31,2011 31,2010Amount(Rs.) Amount(Rs.)Payment not later than one year 42,754 676 33 815,661Payment later than one year but not later than five 42,098,177 1,866,648yearsPayment later than five years - -There are no restrictions imposed by lease arrangements.In case of assets given on leaseThe Company has entered into cancellable leasing arrangements for it's warehouses. Thelease rental of Rs. 609,988 (Previous Year Rs. Nil) has been included under the headwarehousing and storage income under Schedule 14 in Profit & Loss Account. Thesewarehouses have been sub-leased and hence not included in fixed assets.As at March As at March31,2011 31,2010Amount(Rs.) Amount(Rs.}_Payment not later than one year 847 391 -Payment later than one year but not later than five - -yearsPayment later than five years - -8. Capital CommitmentsAs at March As at March31,2011 31,2010Amount(Rs.) Amount[Rs.}_Estimated amount of contracts remaining to be executed 2,135,405 2,135,405on capital account and not provided for.9. Provisions and ContingenciesContingent Liabilities not providedBank/Cor orate Guarantees

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-1110. Earnings Per ShareProfit/(loss) after taxEarnings Per ShareWeighted average number of equity shares in calculatingbasic EPSBasic & Diluted Earnings per share (Rupees)For The YearEnded March31 201126,073,5000.5845,000,0000.5810.00For The YearEnded March31 2010(64,301 '730)(1.88)34,232,877(1.88)10.0011. Gratuity and other post-employment benefit plansGratuity Plan: The Company has made annual contributions to the Gratuity-cum-LifeAssurance (Cash Accumulation) Scheme administered by the Life Insurance Corporation ofIndia ('LIC'), a funded defined benefit plan for qualifying employees. The scheme providesfor lump sum payment to vested employees at retirement, death while in employment oron termination of employment of an amount equivalent to fifteen days salary payable foreach completed year of service or part thereof in excess of six months. Vesting occurs oncompletion of five years of service.The following table sets out the status of the gratuity plan and amounts recognized in theCompany's financial statements as at 31st March, 2011 and 2010Profit and Loss AccountNet employee benefit expense (recognised in Employee Cost)GratuityCurrent service costInterest cost on benefit oblinized in the earFor The YearEnded March31 2010581 45154 97721 754737 433583,509Actual return on lan assets 163 7211,352,10780 474

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11Balance SheetDetails of Provision for GratuityGratuityFor The Year For The YearEnded March Ended March31L 2011 31,2010Defined benefit obligation 2,783,729 2,119 791Fair value of plan assets 1,984,487 1,034 423Less: Unrecognized past service costPlan asset I (liability) (799 242) (1 085 368)Changes in the present value of the defined benefit obligation are as follows:For The YearEnded MarchGratuityFor The YearEnded March31, 2011 31, 2010Opening defined benefit obligation 2,119,791 687 210Interest cost 158,984 54 977Current service cost 909 924 581 451Benefits Q_aid (83,293) -Actuarial (gains) I losses on obligation (321 678) 796,154Closing defined benefit obligation 2,783 729 2 119 791Changes in the fair value of plan assets are as follows:GratuityFor The Year For The YearEnded March Ended March31 2011 31 2010Opening fair value of plan assets 1 034,423 271 921Expected return 77 582 21 754Contributions by employer 8,69,636 6,82,028Benefits paid (83 293) -Actuarial gains I (losses) 86,139 58,720Closing fair value of plan assets 1,984,487 1,034,423...... ~o' E,\'~0

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11The principal assumptions used in determining gratuity and post-employmentmedical benefit obligations for the Company's plans are shown below:For The Year For The YearEnded March Ended March31 2011 31 2010% %8.25 7.58.25 7.51.0 1.0Amounts for the current year is as followsFor The Year For The YearEnded March Ended March31, 2011* 31, 2010*GratuitGratuitDefined Benefit Obligation 2,783,729 2,119,791Plan Assets 1,984,487 1,034,423Surplus/( deficit) (799,242) (1,085,368)adjustments on plan liabilities 33,481 776,564adjustments 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 theamounts determined for each accounting period prospectively from the previous year andhence disclosure of 2008 year figures have not been made.The Company expects to contribute Rs. 266,916 to gratuity in year 2011-1212. Various State APMC's while issuing license for establishing E-market/ Private market Ispot exchange, had condition to maintain a settlement Guarantee fund ('SGF') to meetexchange obligations but have not given any guidelines for the constitution of the SGF. Inview of such a requirement an amount of Rs. 4,068,521 has been apportioned out ofinitial margin of the members to SGF and shown under current liabilities.13. As a part of the documentary requirements for license from State level AgriculturalProduce Market Committee's (APMC's), National Savings Certificates (NSC) are required to

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-11be submitted to the APMCs. However, since NSCs are not issued to corporates, theCompany has obtained NSCs in the name of employees and submitted to the APMC.14. Personnel expenses include reimbursement of deputation charges of the designatedCEO to Multi Commodity Exchange Limited, a Company under the same management.Therefore, all employee related benefits and statutory obligations of personnel ondeputation are discharged by Multi Commodity Exchange Limited.15. Included in the loans and advances is an amount of Rs. 94,828,691 recoverable fromNAFED in connection with agreement dated December 30, 2008 entered into with NAFEDby the Company. In the current year an amount of Rs.5,73,89,987 is received out ofRs.14,89,32,336 which was outstanding at the beginning of the year. Also, included insuch recoverable is an amount pertaining to eventual shortfall in insurance claim recoveryof Rs.100,889,700. The Company management has had extensive discussions with NAFEDofficials and has filed its claims with NAFED. The Company has also obtained a legalopinion supporting its claims that in view of any shortfall in recovery from insuranceclaims, it can recover such shortfall in insurance claims from NAFED. Considering thesame, the Company strongly believes that no provision is required in the financialstatements 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 AgriculturalProduce Market Committee and Sales Tax authorities.17. Additional information pursuant to the provisions of paragraphs 3, 4, 4C and40 of Part II of Schedule VI to the Companies Act, 1956SalesOpeninq StockCastor SeedsCotton Wash OilPurchasesCastor SeedsCotton Wash OilSalesCastor SeedsCotton Wash OilQuantityUnit 2011Kgs -Kgs -Kgs 14 705 163Kgs 10,180,000Kgs 14,705 163Kgs 10,180 000Value (Rs)2010 2011 2010- - -- - -- -- 494 436L207 -- 639 016_1060 -1 133 452 267- 497 606_L609 -- 730_L712 256 -1 228 318,865 -~·-·.·_;r'

NATIONAL SPOT EXCHANGE LIMITEDFor The Year Ended 2010-1118. Previous Year ComparativesPrevious year's figures have been regrouped where necessary to conform to this year'sclassification.As per our report of even dates.v. G-t~~ ~ ~c;;:/hFor S.V. Ghatalia & AssociatesFirm Registration number : 103162WChartered AccountantsFor and on behalf of the Board of Directors ofNational Spot Exchange Limitedper Amit KabraPartnerMembership No. : 094533Place : MumbaiDate :Z 5 MAY Z011V. HariharanWhole Time DirectorI "'' v ' ""'\ ,.. \ ) "-Y'I .,J/1 C"··Nirav Pandya-' ,_ .Company Secretary~-r~Shreekant JavalgekarDirector

NATIONAL SPOT EXCHANGE LIMITEDAnnexure ABusiness Segmental ReportingRevenueSegment ResultUnallocated Corporate ExpensesOperating Profit/(loss)Financial ExpenseNet ProfitOther InformationSegment AssetsUnallocated Corporate AssetsTotal AssetsSegment LiabilitiesUnallocated Corporate LiabilitiesTotal LiabilitiesCapital ExpenditureDepreciationExchangeWarehousing2011 2010 2011 2010272,051,011 85,852,855 33,954,676 27,714,65323,994,996 (104,420,791 (22,008, 155) (23,525,908391,876,627 263,761,202 17,098,548 14,490,367391,876,627 263,761,202 17,098,548 14,490,367718,582,868 136,811,225 3,940,538 3,690,806718,582,868 136,811,225 3,940,538 3,690,806ProcurementTrading2011 2010 2011 201014,272,108 63,479,057 1,228,318,8667,754,513 62,370,183 54,092,999462,394,915 292,002,981 799,474,422462,394,915 292,002,981 799,474,4223,007,525 36,283,348 602,535,6133,007,525 36,283,348 602,535,613Consolidated Total2011 20101,548,596,661 177,046,56563,834,353 (65,576,51637,760,854 31,909,58557,389,031 (64,176,384)31,315,531 125,34526,073,500 (64,301 '730).1,670,844,512 570,254,550417,433,109 114,301,6522,088,277,621 684,556,2021,328,066,544 176,785,379406,090, 599 179,723, 8461,734,157,143 356,509,22510,870,002 231,179,78455,366,011 50,601,059/, • : < .-:::~2'~-:,~~"r .. '-- , ~ . ..:,! _;"". \r.,\ ~,~·,·,. .·, ';.tq '".,. ' "'-~(!'\\. ''"'-~ \\~1*~~:\~.,._ i'::'::'//

~,...---_--Natinal Spot Exchange LimitedAnnexure B------- - -·- ---------Nature of TrasactionsHolding company or group ofindividuals having control orsignificant influence over theCompany and relatives of suchindividualsSubsid~ries Fellow Subsid~ries Associates TotalSr.No.1 Loan/Advances takenBalance as at the start of the yearTaken durino the vearRepaid during the yearBalance as at the end of the year2011 2010200 000 000190 000 000 200 000 000100 000 000290 000 000 200 000 0002011 2010 2011 2010 2011 2010 2011 2010200 000 000190 000 000 200 000 000100 000 000290 000 000 200 000 0002 Loan/Advances GivenBalance as at the start of the vearGiven during the yearRepaid during the yearBalance as at the end of the year188 500,000 14 500 000 188 500 000 14 500,000188,500 000 14,500 000 188,500 000 14,500,0003 Income:Transaction ChargesOeliv~ ch~rgesWarehousina & storaae incomeTesting & Oualitv Certificate CharQesWagrehouse receipt Transfer Chan:JesPenalty for short deliveryAnnual SubcriptionOemat Storaae IncomeOC IncomeCommission & BrokerageInterestCTCL CharaesMiscelleneuse IncomeBusiness S~pport Chru:g_es (Net of Service TaxAdmission fees250 00059 661 607 2,257 262 59 661 607 2 257 262375 566 493178 375 566 4931782 470 720 712 986 3121 215 343,063 5 591,935 1,056 04969,724 108 380 69 724 108,38045,540 57 584 45 540 57 58417,701 17 70150,000 50 0009,588 9 58828,750 28 750709,500 709 500248 893 13041 248 893 13,041250 000150 544 122291 39 365 150 544 161 65615 000 000 15 000 0001 055 000 1 055 0004 Expe_r1ses:Commission & BrokeraoeBusiness support chargesInterestSoftware License Fees ExoPurchae of GoodsFum_imition ExpensesNational Bulk Handline Co~p9_ration Ltd.Oeoutation CharaesMulti Commodity Exchange of India Ltd.Advertisemet ExnsMulti Commoditv Exchanae of India Ltd.Miscelteneuse expenses charaed bv:National Bulk Handling Corporation Ltd.ATOM Technologies LtdFinancial Technologies Communications LimitedMulti Commoditv Exchanae of India Ltd.MCX Stock Exchanoe Ltd.Ticket Plant Ltd.63 981 382 42 487 84221 106,849 65 7534 972 27630 000 000 30 000 000362 436 63 981 382 42 850,27821106 849 65 7534 972 276639 016 060 639 016 0601 216171 704 239 1,216171 704 23920 950 279 18 452 708 20 950 279 18 452 7081 859 710 1 859 710152 778 152 778118 535 118 535248175 248 175727 980 199 447 727 980 199 4471 641 862 1 412 322 1 641 862 1 412 32232,347 131957 131 957 32347827 250 827 2505 Rent:Multi Commoditv Exchanae of India Ltd.Shankarlal GuruBhaQ'NC!:! Dhada"i Pawar1 925 976 4 280,239 1,925 976 4 280 239/_.;r_',,._l "_,..6 Reimbusement of the exoenses1183 856 1 212 2321183 856 1 212 232"""'.,~~,_•·, t,1: \·.,~ .:;,: {'~ j7 Fixed Assets:Fixed Assets PurchasedFixed Assets SoldCapital wortt-in-progress including capital advances6 225 302 224 720 000160241 1 312 220 7,697 763 224 720 00061123 61123523 935 523 935 523 935 523 935