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Notes to Accounts of MMTC Ltd.

Mar 31, 2023

i. All Non-Current Investments in Equity Instruments of Subsidiaries and Joint Ventures are carried at cost less impairment in value of investment, if any. The Investment in Equity Instruments of others are carried at Fair Value.

ii. The Company had invested '' 33.80 crore (P.Y '' 33.80 crore) towards 26% equity in SICAL Iron Ore Terminal Limited (SIOTL), a Joint Venture for the construction and operation of iron ore terminal at Kamrajar Port. The construction of terminal was completed by November 2010, the same could not be commissioned due to restrictions on mining, transportation and export of iron ore. After due tender process, Kamrajar Port Ltd (KPL) has allowed to SIOTL for necessary modifications to also handle common user coal. MMTC''s Board of Directors during its 428th meeting held on 14.09.2016 approved MMTC''s exit through open tender mechanism from the JV. Accordingly, bids were invited from interested bidders for sale of MMTC''s equity. No bids were received in the tender process. However, the lead promoter (i.e., M/s Sical Logistics Ltd) has agreed to buy MMTC''s equity at the reserve price of '' 34.26 crore. Accordingly, the Share Purchase Agreement (SPA) has been signed and in terms of the agreement M/s SICAL Logistics Ltd have deposited '' 0.50 crore with MMTC towards performance of the Agreement. As per terms of SPA, M/s SIOTL applied to M/s Kamrajar Port Ltd for NOC/Permission of MMTC''s exit from the JV. The NOC was received in Oct 2019. However, balance payment has not been received so far. Keeping in view the delay in receipt of share purchase value from M/s SICAL Logistics Ltd and financial distress of M/s Sical Logistics Ltd, a provision has been created for '' 33.80 crore towards impairment in value of investment on SIOTL. Accordingly, the investment has been shown as ''held for sale''. KPL issued notice of intent to terminate to SIOTL on 21.12.2020. The company filed a writ petition on 24.06.2021 in Madras High Court against the termination notice issued by KPL. Vide order dated 30.11.2021, this petition has been dismissed by the Hon''ble Madras High Court on the ground that writ is not maintainable before the court. MMTC has filed an appeal before Hon''ble Madras High Court challenging the impugned judgement order dated 30.11.2021. In the meantime, M/s Sical Logistics Limited holding company of SIOTL was undergoing Corporate Insolvency Resolution Process (CIRP). The Company (MMTC) lodged its claim of '' 34.26 Cr with CIRP of Sical Logistics. To safeguard the investment in SIOTL, M/s SICAL Logistics had moved a similar application being IA/574/Che/2021 in main CIRP proceedings being IBA/73/2020. To ensure that no adverse order is passed in these proceedings, MMTC filed an application being IA/686/Che/2021 for being impleaded as a party and to be heard before any order is passed. Vide order dated 11.03.2022, NCLT Chennai dismissed SICAL''s IA/574/Che/2021 for want of Jurisdiction. Accordingly, MMTC''s application being IA/686/Che/2021 in IA/574/Che/2021 stands closed. IRP of SLL had also informed about the successful resolution of SLL duly approved by NCLT vide its order dated 8.12.2022. M/s SIOTL''s two creditors (1. M/s Portman India Private Limited, Chennai 2. M/s ITD Cementation India Limited, Mumbai) initiated corporate insolvency resolution process against SIOTL in NCLT under Insolvency and Bankruptcy Code 2016. Vide order dated 01.03.2022, Vide order dated 01.03.2022, NCLT Chennai has admitted their applications and have appointed same IRP for both cases. RP of SIOTL vide letter dated 02.03.2023 has informed that the members of the Committee of

Creditors(CoC) have resolved to liquidate the Corporate Debtor and application for the same has been filed before Hon''ble NCLT for initiation of liquidation process. Therefore as per Regulation 12 (2) of the CIRP Regulation and initiation of liquidation the undersigned cannot consider MMTC claim at this stage. Other options available for realisation of investment amount, is being explored in consultation with Law Division.

iii. The process of divestment of NINL has been completed on 4.7.2022 through DIPAM. Further refer note no. 36 (C).

iv. MMTC had invested '' 26 crore (5.20 crore equity share of '' 5 Face value) during 2009-10 in ICEX. ICEX Initial equity capital was '' 100 crore that was later on increased to '' 266.75 crore. However later on MMTC divested 2 crore share @ '' 10 per share in 2015-16. After this divestment MMTC''s shareholding reduced to '' 16 crore (3.20 crore share @ '' 5 Face value) which is 6% of the total share capital of '' 266.75 crore.

Later on due to erosion of Net worth of ICEX MMTC provided Fair value Adjustment of '' 8.16 crore and '' 7.84 crore in 2019-20 and 2021-22 respectively. After such adjustment share value in the books of accounts stands to '' Nil crore as on 31.03.2023 (P.Y. '' Nil crore).

As of March 31,2023, the shares of ICEX are not available for purchase on any stock exchange. MMTC tried to sell its equity in ICEX in FY 2017-18 and again from FY 2019-20 to 2021-22, but MMTC was unable to find any buyers.

SEBI passed order dated 10.05.2022 for withdrawal of recognition to ICEX vide official gazette of India on 18.05.2022. However, Securities Appellate Tribunal (SAT), by its order dated 13 June 2022 has Quashed SEBI order derecognizing ICEX and has given ICEX one-year time from 13.6.2022 to complete all compliances to SEBI''s satisfaction during this period all trading activities would remain suspended.

ICEX Board in February 2023, approved the voluntary surrender of the License/Recognition of the Exchange to Regulator (SEBI) and to discontinue the Commodity derivatives business. Further, ICEX Board decided to consider new line of businesses at appropriate time.

i. Represents '' 208.25 crore (P.Y. '' 208.25 crore) recoverable from various borrowers and National Spot Exchange (NSEL) arising on account of default of payment obligation of NSEL against which full provision has already been made. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. CBI also investigated the case. The Hon''ble Supreme Court of India has set aside the order of amalgamation of NSEL with FTIL. Further, Hon''ble Supreme Court has allowed the appeal filed by State of Maharashtra and held that the notifications issued under Section 4 of the MPID Act attaching the properties of the 63 Moons Technologies Ltd are valid.

The suit filed by Company has been tagged with the suit no 121 of 2014 filed by L.J. Tanna Shares and Securities which has not come up for hearings as per the CMIS systems of the Hon''ble Bombay High Court in regular course. The next date of hearing is awaited. The Company has also filed its claim before the MPID Court in Mumbai to recover the principal sum with interest at 18% per annum. The matters are pending at various stages in court.

ii. During the year a provision of '' Nil crore (P.Y. '' Nil crore) has been made against advance for project development to HFTWPL & KFTWPL. Total Provision as on 31.03.2023 is '' 16.30 crore (P.Y. '' 16.30 crore).

Deferred Tax assets have been recognised to the extent of expected utilisation against probable future taxable income of the company.

* The Company has opted for the new Income Tax rates as per the option under section 115BAA introduced vide Taxation Laws (Amendment) Act, 2019 with effect from FY 2022-23 (AY 2023-24). Hence, carry forward balance of Deferred Tax Assets amounting to '' 214.41 crore has been adjusted to the extent of difference in effective income tax rates between regular Income Tax rates (34.944%) and rates as per the option under section 115BAA (25.167%).

Further, the Company has not recognised Deferred Tax Assets on carry forward losses arising during the Current as well as previous financial years on conservative basis keeping in view of the uncertainties involved.

*Includes '' 20.10 crore (P.Y. '' 14.68 crore) is under dispute (refer note no. 34 (i) (b))

(i) ** In terms of the court order dated 06.05.2022 & 07.07.2022 passed by the Hon''ble Delhi High Court in the matter of Anglo Coal case, an amount of '' 1088.62 crore has been deposited with Delhi HC and the final amount is subject to judgement/clarification of Hon''ble Court. Provision of '' 1054.77 crore (Refer note no. 20) has already been made in the books of accounts with interest up to 19.07.2022 as per company''s calculation. Next date of hearing is 13.07.2023.

(ii) Includes an amount of '' 4.36 crore deposited with The Registrar General of Hon''ble Delhi High Court in respect of the case Trammo AG v/s MMTC Limited. The provision of '' 4.36 crore (Refer note no. 20) against the same has been made in the books.

(iii) Includes an amount of '' 0.60 crore deposited with CESTAT, which is prerequisite for filing appeal against the service tax demand.

(iv) Includes an amount of '' 2.79 crore deposited with The Registrar General of Hon''ble Delhi High Court in respect of the case OMP (ENG) KISPL v/s MMTC Limited. The company has recognised contingent liability of '' 6.14 crore (Refer note no. 34).

a) As taken, valued and certified by the management.

b) Inventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 2023. Valuation of closing stock at market price being lower than cost, has resulted in a loss of '' Nil crore (P.Y. '' 0.01 crore).

c) Stock-in-trade includes the following:

(i) 9036 units (P.Y. 9036 units) Certified Emission Reductions (CERs) valued at '' 1 (P.Y. '' 1) as per Ind AS-2 ''Inventories'', being lower of cost or net realizable value.

(ii) Nil units (P.Y. Nil units) number of CERs under certification.

(iii) An amount of '' 5.42 crore (P.Y. '' 5.30 crore) has been spent on account of Depreciation, O&M cost of Emission Reduction equipment.

d) Stock in Trade includes an inventory of '' Nil crore (P.Y. '' Nil crore) valued at cost relating to onion imported under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion. (Refer note 36(e)).

The Company has one class of share capital, comprising ordinary shares of '' 1/- each. Subject to the Company''s Articles of Association and applicable law, the Company''s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

Movements in equity share capital: During the year, the company has not bought back any shares.

The Company does not have any holding company.

During 2018-19, the company has allotted 50 crore equity shares in ratio of 1:2 as fully paid bonus shares by capitalization of free reserves amounting to '' 50 crore, pursuant to an ordinary resolution passed after taking consent of shareholders through postal ballot. Accordingly the paid up share capital of the company stands increased to '' 150/- crore divided into 150 crore equity share of '' 1/-each fully paid.

(i) Profit of the company for PRP purpose has been calculated taking into account interest income on trade related advance (other than overdue) as per Accounting Policy no. 2.4 (ii). Pending approval of the Remuneration Committee as mandated in the DPE Guidelines, the PRP advance was made to employees. The order for recovery of above PRP advance from employees is disputed by staff & officers forum and is pending in respective courts.

(ii) The payment of perks & allowances has been deferred w.e.f. 01.09.2020 in accordance with the decision of FMCOD in its meeting held on 20.10.2020 on the grounds of poor financial health of the company.

(iii) MMTC Employees Post-Retirement Medical Benefit Trust, is operational during 2022-23. The decision to fund the PRMBS Trust is pending, keeping in view the affordability provision laid down in the DPE order.

(iv) CPF/Pension dues from December 2021 to March 2022 was pending and same has been paid on 5.7.2022.

*Consequent upon receipts of divestment proceeds from NINL on 4.7.2022 an amount of '' 2551.44 crore as on 31.3.2022 have been paid towards principal and agreed interest upto 31.3.2022. An amount of '' 106.41 crore relating to interest and Right to Recompense (RTR) has been provided for in the current twelve months, out of which '' 63.68 crore pertains to interest from 01.04.2022 to 31.03.2023 & remaining amount of '' 42.73 crore (refer note no. 16) relates to additional interest and other charges under RTR subject to final settlement with banks. The matter is now closed with State Bank of India and Punjab & Sind Bank. Other lender banks are also taking up the matter with their appropriate authorities. Surplus funds are being invested as per Board approved policies.

Also includes interest paid on gratuity '' 0.08 crore, on late payment of TDS '' 0.10 crore and on interest on late payment of income tax '' 1.39 crore.

ia) Guarantees issued by Banks on behalf of the Company '' 13.69 crore (P.Y. '' 13.95 crore) in favour of customer towards performance of contracts against which backup guarantees amounting to '' Nil crore (P.Y. '' Nil crore) have been obtained from associate suppliers.

ii) Letters of Credit opened by the Company remaining outstanding '' Nil crore (P.Y. '' 9.33 crore).

iii) Corporate Guarantees of '' Nil crore (P.Y. '' 1345.82 crore) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL).

iv) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

v) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

vi) Claims against the company not acknowledged as debt includes demand raised by RPFC of '' 2.18 crore (P.Y. '' 0.69 crore) on account of MMTC Employees Cooperative Canteen Society.

vii) a) Above includes amount of '' 0.07 crore (P.Y. '' 0.07 crore) on account of demand raised by Stock Exchange Board of India (SEBI) in relation to non-compliance of regulation 33 of SEBI. Further an amount of '' 0.01 crore is also included for non-compliance of appointment of Independent Director by administrative ministry.

35. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is '' Nil crore (P.Y. '' Nil crore).

Capital commitment in respect of investment in joint venture '' Nil crore (P.Y. '' Nil crore).

36. General Disclosures :-

a) Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 11 (B)) as well as other current liabilities (note no. 21).

b) Nil kgs (P.Y. Nil kgs) of un-refined Silver is lying in DRO as on 31.3.2023 on behalf of Shri Mata Veshno Devi Shrine Board.

c) Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company divestment has been completed on 4.7.2022.

i The detailed note on NINL divestment was given in 2021-22 and further to that, MMTC’s share of '' 484.14 crore out of '' 911.16 crore towards contingent liabilities on account of Govt. dues ('' 36.77 crore - Non Tax liabilities & '' 874.39 crore -Tax liabilities) have been kept in an interest bearing Escrow Account, which shall be passed on to Sellers in the ratio of their stake holding, if the claim against these dues have not been paid till the end of retention period (2 years for non - tax liabilities and 3 years for tax liabilities), Further as the above event is based on probable future outcome, the revenue for the same has not been recognised and this deferred amount has been treated as contingent asset, which is accordance of the opinion of Tax experts for capital gain tax liability on contingent consideration of '' 484.13 crore.

Out of the '' 911.16 crore mentioned above, amount of '' 82.96 crore, are settled in the month of April, 2023 against payment of '' 1.24 crore (as agreed mutually by Sellers and Buyer) and balance '' 81.72 crore is distributed to sellers in their shareholding ratio, out of which MMTC had received '' 43.42 crore on 25.04.2023. Balance amount of '' 828.20 crore (MMTC share '' 440.72 crore) is in an interest bearing Escrow Account.

ii. All Corporate Guarantees (CG) furnished by MMTC on account of NINL have been released.

iii. As per the clause of Share Purchase Agreement (SPA) for divestment of NINL, any unforeseen liability on NINL post divestment shall be borne by Sellers/ Promoters as per the warranty clause of SPA and the aggregate liability of the Sellers and Promoters cannot exceed 20% of the amount received by the sellers from Bid amount, by way of sale consideration and discharge of their respective Seller Debt. MMTC’s maximum liability in this regard, if any, works out to '' 1060 crore.

d) The Company has filed a recovery suit of '' 31.40 crore against M/s AIPL in respect of Mint sale transaction (P.Y. '' 31.40 crore) which included overdue interest of '' 2.95 crore (P.Y. '' 2.95 crore) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of '' 167.20 crore (P.Y. '' 167.20 crore) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion, MMTC imported onion from July 2019 onwards until 31.03.2020. As per the scheme MMTC''s trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The difference between the sale realisation and cost incurred including MMTC''s margin has been shown as claim receivables from Govt. which will be adjusted with the advance received from Govt.

f) A claim for '' 1.53 crore (P.Y. '' 1.53 crore) against an associate on account of damaged imported Polyester is pending for which a provision of '' 1.53 crore (P.Y. '' 1.53 crore) exists in the accounts after taking into account the EMD and other payables. The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) At RO Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of '' 4.13 crore (P.Y. '' 4.13 crore) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at '' 8.60 crore (P.Y. '' 8.60 crore), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

h) At RO Hyderabad:

(i) Fake bills of lading covering two shipments of copper valued at '' 3.75 crore (P.Y. '' 3.75 crore) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier. The amount of '' 4.44 crore for this transaction received in full and final settlement from the local buyer which includes in Advance received from customer under other non-current liabilities.

(ii) Trade receivable from MBS Group of '' 226.82 crore against which 100% provision has already been made. In this matter Studded Jewellery deposited by MBS Group during 2012-13 with RO Hyderabad and is lying in office vault. This is the prime legal matter pending before the various courts/forums due to abnormal difference in valuation claimed by MBS Group and re-valuation of same done by the company. Also said matter in under investigation with CBI/ED as on date.

i) Hon''ble Delhi High Court has directed the Company to deposit '' 39.62 Crore (PY '' 39.62 Cr.) stated to be receivable by one of the Company''s coal suppliers as per their books of accounts from MMTC in a case relating to execution of decree filed by a foreign party against the coal supplier. MMTC has filed application and counter affidavit stating that the supplier''s contractual obligations are yet to be discharged and MMTC is unable to deposit any amount at this stage. Any amount found payable to the supplier after resolution of all issues, the same will be deposited with the court instead of releasing to the supplier without any liability on MMTC. The hearings are in progress and next date of hearing is 22.08.2023.

j) FCI in March 2019 approached MOC&A, F&PD for initiation of Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) proceedings against MMTC for an amount of '' 92.18 crores, including interest as MMTC had deducted an amount of '' 60.99 crores from FCI''s payment in May 2014. Out of this provision of an amount of '' 1.13 crore has been made on 31.03.2022. For the balance amount of '' 91.05 crore contingent liability provided. MMTC explained its position that an amount of '' 60.99 crore was deducted from wheat exports in 2014 to recover MMTC''s dues from FCI arising from multiple transactions since 1991 onwards. The matter was admitted for resolution under AMRCD. The AMRCD committee in its meeting held on 22.05.2020 directed both MMTC and FCI to reconcile the accounts. MMTC and FCI have since begun working towards reconciliation of the claims and counter claims. Numerous rounds of discussions have taken place between MMTC and FCI, wherein the supporting documents have been exchanged between both the parties to establish their claims and counter claims, respectively. In July 2022, MMTC submitted to FCI write-ups on claims and counter claims with copies to DoC and DoCA,F&PD. In Nov 2022, DoF&PD sought information on claims and counter claims from MMTC & FCI. MMTC provided the information to DoF&PD in Nov 2022.

k) The company has taken decision to replace the existing ERP Package with TALLY prime package w.e.f. 01.04.2023.

l) As per the direction of administrative ministry for downsizing of offices/business company has introduced VRS on 16.03.2023 with the eligibility criteria covering all employees in staff cadre and management cadre irrespective of length of services. VRS of 95 number of employees has been accepted.

m) MMTC has been directed by administrative ministry to prepare a road map for scaling down of manpower including exit from various JVs. Also direction have been given for exit from business operation. Government is yet to decide the exit route for MMTC. As there is no communication from Ministry for closure etc., status quo of going concern is being maintained. Consequent upon receipts of divestment proceeds from NINL on 4.7.2022 an amount of '' 2551.44 crore have been paid towards principal and agreed interest up to 31.3.2022 against bank borrowings. Surplus funds are being invested as per Board approved policies, as a result of which the company is in a position to mitigate the immediate expenses and also discharging all its financial commitments. At this stage, the company''s projections, estimates and expectations may be forward looking. Important factors that could make a difference to the Company''s operations includes economic conditions affecting demand / supply and the price conditions in the domestic and oversea markets in which the company operates, change in Government policies, other statues and other incidental factors.

n) An amount of '' 0.10 crore on account of foreign Debtors outstanding more than twenty years was written off with the approval of the Board of Directors of MMTC Limited during the F.Y 2022-23 and the provisions created earlier for Bad and Doubtful Debts/Claims/Loans were withdrawn.

The Management is under the process of taking an opinion on FEMA guidelines through an expert and action (if any) will be taken accordingly.

37. Financial Instruments- Fair Values and Risk Management

37.1 Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

37.2 Fair Value Hierarchy

• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

• Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs).

a) Market risk

(i) Foreign Exchange Risk

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short-term foreign currency loans (buyer''s credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company''s risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The company has no exposure in respect of foreign currency receivable/payable since loss/gain is to the account of the Associate supplier/customer. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2023 and March 31, 2022, every 1% increase or decrease of the respective foreign currencies compared to our functional currency would impact our profit before tax by approximately '' NIL and '' NIL, respectively.

(i) Price Risk

The company’s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31,2023 and March 31,2022, every 1% increase or decrease of the respective equity prices would impact other component of equity by approximately ''0.05 crore and '' 0.11 crore, respectively. It has no impact on profit or loss.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company’s outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV’s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company’s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc. are taken into account for the purposes of expected credit loss.

Credit risk exposure

Trade receivables are generally considered credit impaired when overdue for more than three years (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired though overdue are of good credit quality.

With regard to certain trade receivables, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc. are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality.

a) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company arranges credit from bank and maintains balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The table includes both principal & interest cash flows.

39. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of assets”

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to '' Nil crores (P.Y. '' Nil crore) has been made during the year.

40. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”

40.1 General description of various employee’s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company’s expected contribution for FY 2023-24 towards the Gratuity Fund Contribution is '' 1.97 crore (P.Y. '' 2.42 crore). However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave Compensation:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under :-

(i) Service Award:

Service Award amounting to '' 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to '' 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(iii) Employees'' Family Benefit Scheme

Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of '' 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum '' 12,000/- on rendering service of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to '' 5,00,000/- (Officer), '' 4,00,000/- (Staff) and '' 3,00,000/- (Worker) upon retirement

d) Provident Fund: The Company’s contribution paid/payable during the year to Provident Fund and the liability is recognized on accrual basis. The Company’s Provident Fund Trust is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

e) Superannuation Pension Benefit - During the year, the Company has recognized '' 3.48 crore (P.Y. '' 4.06 crore) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ‘Defined Contribution Scheme’ as under:

a. The liability @ 1.50% of PBT for the year in respect of scheme for retirees prior to 1.1.2007 (closed group) has been not been recognised for FY 2021-22 and 2022-23 on the basis of affordability even though company has reported profit before tax '' 1279.16 crore (P.Y. '' 120.60 crore). Also, the company has not provided for PRMBS for open group @ 4.50% Baisc DA for serving employees.

b. The company has created PRMBS Trust for management of fund and paid '' 150.00 crore in 2019-20 to trust against company’s liability towards the scheme. The trust is operational during 2022-23.

41. Disclosure in respect of Indian Accounting standard (Ind AS)-108: “Operating Segments”

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company’s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:-Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others

Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans

and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities

include liabilities and provisions directly attributable to respective segment.

(b) Contract Assets

Company recognises contract assets when it satisfies its obligation by transferring the goods or services to the customer and right to receive the consideration is established which is subject to some conditions to be fulfilled by the company in future before receipt of consideration amount. Being a trading company performance obligation of the company is satisfied upon transferring a promised goods or service to its customers and there is no obligation on the part of the company which remains unexecuted.

(c) Contract Liabilities

Upon execution of contract with the customers, certain amount in the form of EMD, Security Deposit, Margin Money, advance for payment of custom duty etc. received from the customers which is shown as advance received from customers under the heading “Other Financial Liabilities” and “Other Liabilities”

During the year company has recognized revenue of '' Nil crore (P.Y. '' Nil crore) from the performance obligations satisfied in earlier periods by raising debit/credit notes to its customers.

The company has made the adjustment of '' Nil crore (P.Y. '' Nil Crore) in the revenue of '' Nil crore ( P.Y. '' Nil crore) recognized during the year on account of discounts, rebates, refunds, credits, price concessions, incentives performance bonuses etc. as against the contracted revenue of '' Nil crore ( P.Y. '' Nil crore).

(d) Practical expedients

During the year company has entered into sales contracts with its customers where some of the part is yet to be executed, same has not been disclosed as per practical expedient as the duration of the contract is less than one year or right to receive the consideration established on completion of the performance by the company.

B. Significant judgements in the application of this standard

(i) Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers. Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.

(ii) The company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, GST etc.).

(iii) The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Any further adjustment will be made by raising debit/credit notes on the customer. While determining the transaction price effects of variable consideration, constraining estimates of variable consideration, the existence of a significant financing component in the contract, non-cash consideration and consideration payable to a customer is also considered.

(iv) Certain adjustments have been made during the year in contract value which is not significant keeping in view the amount involved.

C. Assets Recognised from costs to obtain or fulfill a contact with a customer

Being a trading company, costs incurred by the company are fixed in nature with no significant incremental cost to obtain or fulfill a contract with a customer and same is charged to profit and loss as a practical expedient.

50. Other Statutory Information

a) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b) The Company do not have any transactions with companies struck off

c) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

d) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year

e) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

• -Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

• -Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

g) The Company do not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

h) The company is not in contravention with the number of layers prescribed under section 2(87) of the Act

i) The Company has not entered into any Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Act

j) The company has not been declared wilful defaulter by any bank or financial institution or other lender

51. The accounts of certain trade receivables, trade payables, short and long term loans and advances, other noncurrent and current Assets are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year’s financial statements.

In the opinion of the management, the assets other than property plant and equipment, intangible assets and noncurrent investments are expected to realize at the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts.

52. The company has made certain changes in the Accounting Policies during the year as under:

(i) Accounting policy no. 2.4 i) “Revenue from sale of goods is measured at fair value of the consideration received or receivable, net of returns and allowances, trade discount and volume rebates. Revenue is recognized when the company satisfies a performance obligation by transferring the promised goods or services to a customer and the customer obtains control of the same and it is probable that the company will collect the consideration to which it is entitled in exchange for the goods or services that is transferred to the customer.” has been changed to:

“Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of the contract."

(ii) Accounting policy no.2.21 i) “including any directly attributable transaction costs” ” has been changed to add the wording “plus in case of financial assets not recorded at FVTPL, transaction cost attributable to the acquisition of financial asset."

(iii) Accounting policy no.2.21 i) c) “directly attributable transaction costs” has been changed to add the wording “in case of financial assets not recorded at FVTPL, transaction cost attributable to the acquisition of financial asset, however trade receivable that do not contain a significant financing component are measured at transaction price"

The above changes have no financial impact on the financials of the company excepts as stated above.

53. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of '' 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

54. Accounting policies and notes attached form an integral part of the financial statements.

55. Amount in the financial statements are presented in '' crore (upto two decimals) except for per share data and as otherwise stated. Certain small amounts may not appear in financial statements due to rounding off in '' in crore. Previous year’s figures have been regrouped/rearranged wherever considered necessary.

56. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 30.05.2023.


Mar 31, 2022

i. All Non-Current Investments in Equity Instruments of Subsidiaries and Joint Ventures are carried at cost less impairment in value of investment, if any. The Investment in Equity Instruments of others are carried at Fair Value.

ii. The Company had invested ? 33.80 crore (P.Y ? 33.80 crore) towards 26% equity in SICAL Iron Ore Terminal Limited (SIOTL), a Joint Venture for the construction and operation of iron ore terminal at Kamrajar Port. The construction of terminal was completed by November 2010, the same could not be commissioned due to restrictions on mining, transportation and export of iron ore. After due tender process, Kamrajar Port Ltd (KPL) has allowed to SIOTL for necessary modifications to also handle common user coal. MMTC''s Board of Directors during its 428th meeting held on 14.09.16 approved MMTC''s exit through open tender mechanism from the JV. Accordingly, bids were invited from interested bidders for sale of MMTC''s equity. No bids were received in the tender process. However, the lead promoter (i.e. M/s Sical Logistics Ltd) has agreed to buy MMTC''s equity at the reserve price of ? 34.26 crore. Accordingly, the Share Purchase Agreement (SPA) has been signed and in terms of the agreement M/s SICAL Logistics Ltd have deposited ? 0.50 crore with MMTC towards performance of the Agreement. As per terms of SPA, M/s SIOTL applied to M/s Kamrajar Port Ltd for NOC/Permission of MMTC''s exit from the JV. The NOC was received in Oct 2019. However, balance payment has not been received so far. Keeping in view the delay in receipt of share purchase value from M/s SICAL Logistics Ltd and financial distress of M/s Sical Logistics Ltd, a provision has been created for ? 33.80 crore towards impairment in value of investment on SIOTL. Accordingly the investment has been shown as ''held for sale''.

KPL issued notice of intent to terminate to SIOTL on 21.12.2020.The company file a writ petition on 24.06.2021 in Madras High Court against the termination notice issued by KPL. Vide order dated 30.11.2021, this petition has been dismissed by the Hon''ble Madras High Court on the ground that writ is not maintainable before the court. MMTC has filed an appeal before Hon''ble Madras High Court challenging the impugned judgement order dated 30.11.2021. Possibility of taking this matter to AMRCD and other options available for realisation of investment amount, is being explored. In the meantime, M/s Sical Logistics Limited holding company of SIOTL was undergoing Corporate Insolvency Resolution Process (CIRP). The Company (MMTC) lodged its claim of ? 34.26 crore with CIRP of Sical Logistics. To safeguard the investment in SIOTL, M/s SICAL Logistics had moved a similar application being IA/574/Che/2021 in main CIRP proceedings being IBA/73/2020. To ensure that no adverse order is passed in these proceedings, MMTC filed an application being IA/686/Che/2021 for being impleaded as a party and to be heard before any order is passed. Vide order dated 11.03.2022, NCLT Chennai dismissed SICAL''s IA/574/Che/2021 for want of Jurisdiction. Accordingly, MMTC''s application being IA/686/Che/2021 in IA/574/Che/2021 stands closed. M/s SIOTL''s two creditors (1. M/s Portman India Private Limited, Chennai 2. M/s ITD Cementation India Limited, Mumbai) initiated corporate insolvency resolution process against SIOTL in NCLT under Insolvency and Bankruptcy Code 2016. Vide order dated 01.03.2022, NCLT Chennai has admitted their applications and have appointed same IRP for both cases.

iii. Government of India has accorded ''in principle'' approval for divestment of 100 % equity of MMTC in NINL. The process of divestment is underway through DIPAM. Accordingly, the investment has been shown as investment ''held for sale''.

iv. MMTC had invested ? 26crore (5.20 crore equity share of ? 5 Face value) during 2009-10 in ICEX. ICEX Initial equity capital was ? 100 crore that was later on increased to ? 266.75 crore. However later on MMTC divested 2 crore share @ ? 10 per share in 2015-16. After this divestment MMTC''s shareholding reduced to ? 16 crore (3.20 crore share @ ? 5 Face value) which is 6% of the total share capital of ? 266.75 crore. Later on due to erosion of Net worth of ICEX MMTC provided Fair value Adjustment of? 8.16 crore and ? 7.84 crore in 2019-20 and 2021-22 respectively. After such adjustment share value in the books of accounts stands to ? Nil crore as on 31.03.2022 (P.Y. ? 7.84 crore).

The equity shares of ICEX are not listed at any stock exchange in India as on 31.03.2022. MMTC has invited Request for Proposal (RFP) for divestment of 6% equity in ICEX and accordingly the investment has been shown as ''held for sale'' as on 31.3.2022.

SEBI had granted the additional timeline till December 31, 2021 to comply with the shareholding limits as per SECC Regulations, 2018. MMTC has requested SEBI to extend the time for compliance of SECC Regulations, however, response is awaited. SEBI passed order dated 10.05.2022 for with drawl of recognition to Indian Commodity Exchange Ltd. and published in the official gazette of India on 18.05.2022. However, Securities Appellate Tribunal (SAT), by its order dated 13 June 2022 has Quashed SEBI order derecognizing ICEX.

(i) Represents ? 208.25 crore (RY. ? 208.25 crore) recoverable from various borrowers and National Spot Exchange (NSEL) arising on account of default of payment obligation of NSEL against which full provision has already been made. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. CBI also Investigated the case. The Hon''ble Supreme Court of India has set aside the order of amalgamation of NSEL with FTIL. Further, Hon''ble Supreme Court has allowed the appeal filed by State of Maharashtra and held that the notifications issued under Section 4 of the MPID Act attaching the properties of the 63 Moons Technologies Ltd are valid.

The suit filed by company has been tagged with the Suit No. 121 of 2014 filed by L.J. Tanna Shares and Securities which has not come up for hearings as per the CMIS systems of the Hon’ble Bombay High Court in regular course. The next date of hearing is awaited.

Deferred Tax assets have been recognised to the extent of expected utilisation against probable future taxable income of the company.

* Deferred Tax Assets amounting to ? 330.69 crore was created during the previous year 2020-21 on losses limited to probable interest proceeds from FY 2019-20 to 2021-22 to be realised through divestment proceeds from NINL. Considering the certainty of realisation of interest proceeds from NINL for FY 2019-20 & 2020-21, the interest for FY 2019-20 & 2020-21 has been booked in current year on the basis of waterfall agreement signed and subsequent directives. Hence, Deferred TaxAssets of ? 330.69 crore created earlier has been reversed.

Further, the Company has not recognised Deferred TaxAssets on carry forward losses arising during the Current as well as previous financial years on conservative basis keeping in view of the uncertainties involved.

a) As taken, valued and certified by the management.

b) Inventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 2022. Valuation of closing stock at market price being lower than cost, has resulted in a loss of ? 0.01 crores (P.Y. ? 1.59 crores).

c) Stock-in-trade includes the following:

(i) 9036 units (P.Y. 9036 units) Certified Emission Reductions (CERs) valued at ? 1 (P.Y. ? 1) as per Ind AS-2 ‘Inventories’, being lower of cost or net realizable value.

(ii) Nil units (P.Y. Nil units) numberof CERs under certification.

(iii) An amount of ? 5.30 crore (P.Y. ? 4.91 crore) has been spent on account of Depreciation, O&M cost of Emission Reduction equipment.

d) Stock in Trade includes an inventory of ? Nil (P.Y. ? Nil) valued at cost relating to onion imported under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion. (Refer note no. 36(e)).

The Company has one class of share capital, comprising ordinary shares of ? 1/- each. Subject to the Company’s Articles of Association and applicable law, the Company’s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

Movements in equity share capital: During the year, the company has not bought back any shares.

The Company does not have any holding company.

During 2018-19, the company has allotted 50 crore equity shares in ratio of 1:2 as fully paid bonus shares by capitalization of free reserves amounting to ? 50 crore, pursuant to an ordinary resolution passed after taking consent of shareholders through postal ballot. Accordingly the paid up share capital of the company stands increased to ? 150/- crore divided into 150 crore equity share of ?1/-each fully paid.

• The loans have not been guaranteed by any of the director or others.

• The loans have been taken from Banks under Cash Credit/Packing Credit Accounts/Others and are repayable within one year. Interest payable on loan repayable on demand is based on MCLR plus spread of banks.

• The quarterly returns or statements of current assets are filed by the company with banks on the basis of provisional monthly information system prepared for internal purposes.

As per loan restructuring agreements, the due date of loan and interest repayment was 30.03.2022 with a review period of 30 days. Total outstanding bank loan and interest was to be paid in one go on or before 29.04.2022 (30 days review period after 30.03.2022), mainly out of NINL divestment As bank loan along with interest could not be repaid on due date/ review period due to non-receipt of disinvestment proceeds of NINL, MMTC Account with all lender banks has been downgraded to Sub-standard/ NPA w.e.f. 08.06.2021 ie. the date of loan restructuring. Penal provisions are now applicable as per loan restructuring agreements and other legislations. SBI has put all accounts on hold. SBI vide their mail dated 27.04.2022 had already intimated that if payment is not made upto 29.04.2022, MMTC account will be downgraded to Non Performing Asset (NPA). In such a scenario, Bank’s guidelines applicable for the NPAaccounts will come into force, which includes but not limited to:

i. Initiate remedial measures for recovery of the outstanding amount.

ii. Concession extended, if any, shall be withdrawn and card rate shall be made applicable.

iii. Reset interest rate to the Card Rate applicable.

The communication in this regard has been sent to Stock Exchanges. A Joint Lender’s Meeting was also held on 02.05.2022 and MMTC was allowed business transactions in respect of GMS e-auction. Statutory, utility and other essential payments were also allowed for survival and retaining the status as going concern. It was also mentioned in the minutes of the meeting that the downgrading of account is as per regulatory guidelines of RBI and penal interest/ card rate of respective banks would be applicable. Considering reasonable amount of certainty in realization of NINL disinvestment proceeds, lender banks did not intend to initiate any legal action/ other remedial measures for recovery process as of now.

MMTC has been facing liquidity crisis for long time. MMTC bank limit were exhausted mainly up to 2019-20 including MMTC internal resources for providing working capital/loan to NINL etc. MMTC liabilities at present are frozen on 31.03.2021 as per DIPAM/IMG. As per directives of Board, MMTC requested all lender banks for restructuring of loan in terms of RBI Circular no. RBI/2020-21/16 DOR No.BP/BC/3/21.04.048/2020-21 dated 06.08.2020 for resolution of Covid-19 related stress. The loan resolution plan was approved by all lender banks and was implemented w.e.f. 08.06.2021. Principal amount of loan outstanding as on the date of implementation of resolution plan was ? 2272.25 crore. Requisite information and / records were shared with banks and subsequently company and lender banks have signed Master Debt Resolution Agreement (MDRA), Trust and Retention Account Agreement (TRA) and other necessary documents thereto on 08.06.2021 .DOC was kept informed about all developments/issues from time to time as required.

Post implementation of loan restructuring, MMTC account remained regular/ standard with all the lender banks. By signing the documents, lenders waived existing event of default and no civil action or proceeding may be invoked under IBC. Under this scheme, the company has got moratorium/ deferment on recovery of interest for credit facilities upto 08.12.2021 for SBI and 31.03.2022 for other banks and for principal upto 31.03.2022 for all banks. MMTC continued to pay Karnataka Bank and started payment to SBI interest from Dec 21/ Jan 22. MMTC was not able to pay bank loans and interest on due date ie.30.03.2022 and further within the review period upto 29.04.2022, due to delay in receipt of NINL proceeds and substantial downsizing of business resulting in negligible trade income. As a consequence, MMTC account with all lender banks downgraded to substandard/ NPA w.e.f.08.06.2021 ie. The date of loan restructuring. MMTC had made several requests in this regard to banks and also informed SEs/DOC/DFS/ DIPAM. Efforts are being made to avoid adverse effects of NPA with requests / meetings with banks. The lender banks allowed statutory, utility and other essential payments and certain business transactions for survival of the company. Considering expected NINL disinvestment proceeds, lender banks did not intend to initiate any legal action/ other remedial measures for recovery process for the time being.

Consequent upon receipts of divestment proceeds from NINLon 4.7.2022 an amount of ? 2551.44 crore as on 31.3.2022 have been paid towards principal and normal agreed interest upto 31.3.2022. Further as on 6.7.2022 statement have been obtained and lenders have provided statement with penal interest form 1.4.2022 onwards only but company has paid only normal interest and

(i) Profit of the company for PRP purpose has been calculated taking into account interest income on trade related advance (other than overdue) as per Accounting Policy no. 2.4 (ii). Pending approval of the Remuneration Committee as mandated in the DPE Guidelines, the PRP advance was made to employees. The order for recovery of above PRP advance from employees is disputed by staff & officers forum and is pending in respective courts.

(ii) The payment of perks & allowances has been deferred w.e.f. 01.09.2020 in accordance with the decision of FMCOD in its meeting held on 20.10.2020 on the grounds of poor financial health of the company.

(iii) lt is notified vide order No. MMTC/CO/IRP/08/2018 dated 02.05.2018, that the rates of HRA shall be revised to 27%, 18%,9% and 30%,20%, 10% (for class X, Y & Z cities) if the IDA crosses 25% and 50% respectively in line with DPE guidelines. Since IDA was revised to 27.2% w.e.f. 01.10.2021, necessitating revision of HRAas mandated.

(iv) CPF/Pension dues from December2021 to March 2022 was pending and same has been paid on 5.7.2022.

(v) MMTC Employees Post-Retirement Medical Benefit Trust, is still not operational. MMTC has been incurring losses and the provisions for loss years i.e., 2019-20 and 2020-21 has been reversed. The decision to fund the PRMBS Trust is under consideration, keeping in view the affordability provision laid down in the DPE order.

(i) Represents provision towards equity investment in Free Trade Warehousing Pvt. Ltd.

(ii) A provision of ? 877.43 crore was made during in FY 2020-21 towards Anglo Coal Liability and further during the year 2021-22 a provision of ? 177.44 crore towards pre arbitration interest liability for the period 1.10.2009 to 24.9.2012 and exchange difference has been made as per Hon’ble Supreme Court order dated 29.07.2021. Further developments in respect of the legal case is under:

Thereafter in line with the opinion dated 27.03.2021 of Ld. AG, on disposal of Clarification application dated 19.04.2022, draft Curative Petition prepared by DMD Advocates sent to Ld. ASG for vetting and certification in consonance with direction of Board and DoC. Ld. ASG vetted the draft and the same was referred to Ld. AG through AOR for final settlement before filing. The Ld. AG vide letter dated 29.05.2022 now stated that this is not a fit case for Curative Petition. Copy of AG''s letter was forwarded to DoC vide letter dated 08.06.2022. Thereafter the issue was formally taken up with Ld ASG that whether he is still willing for filing the curative petition by giving required certificate. Ld ASG has also declined MMTC curative petition at present.

(iii) Includes? 13.84 crore PRP provision of 2017-18 and 2018-19 withdrawn during the year as per the directives of BOD.

ia) Guarantees issued by Banks on behalf of the Company? 3.07 crore(P.Y. ?3.66 crore) in favour of customer towards performance of contracts against which backup guarantees amounting to ? Nil crore (P.Y. ? Nil crore) have been obtained from associate suppliers.

ii) Letters of Credit opened by the Company remaining outstanding ? 9.33 crore (P.Y. ? 8.50 crore).

iii) Corporate Guarantees of ? 1345.82 crore (P.Y. ? 1345.82 crore) given by the company in favour of financial Institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL), a Joint Venture Company, for securing principal and interest in respect of loans to NINL. (Refer 36 c(iv))

iv) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt, of India''s account and hence the same would be recoverable from the Govt, of India.

v) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

vi) Claims against the company not acknowledged as debt includes demand raised by RPFC of ? 0.69 crores on account of MMTC Employees Cooperative Canteen Society.

vii) a) Above includes amount of ? 0.07 crore on account of demand raised by Stock Exchange Board of India (SEBI) in relation to non-compliance of regulation 33 of SEBI.

35. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is ? Nil crore (P.Y. ? Nil crore).

Capital commitment in respect of investment in joint venture ? Nil crore (P.Y. ? Nil crore).

36. General Disclosures

b) Nil kgs (P.Y. 3956.494 kgs) of un-refined Silver is lying in DRO as on 31.3.2022 on behalf of Shri Mata Veshno Devi Shrine Board. The value of the stock cannot be ascertained as fineness of the Silver in not known.

c) Investment in and advances to Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company

(i)The company alongwith Government of Odisha has set up a 1.1 MT integrated steel plant in Odisha and invested ? 459.11 crore (P.Y. ? 459.11 crore) (Note 6) towards 49.78% in equity capital in NINL. The Government of India (CCEA)

has accorded ‘in principle'' approval on 8th January, 2020 for strategic divestment of equity investment held by MMTC and other Central/State PSUs. The process of divestment is underway through Department of Investment and Public Asset Management (DIPAM). As per the Final financial Bid for divestment of NINL, DIPAM had declared M/s Tata Steel Long Products as the H1 bidder for enterprise value of ? 12,100.00 crore.

(ii) The company has been extending, from time to time, short term credit facility (cash credit) to NINL upto a limit of ? 1425.00 crore for its day to day operational activities on continuing basis. In addition, a trade related financial facility to the extent of ? 2038.10 crore has also been extended. Against this, outstanding under Other Assets (advances to related parties) (note 11) is ? 3463.11 crore (P.Y. ? 3528.47 crore). Further as per the provision of waterfall agreement signed for distribution of divestment proceeds pursuant to divestment process initiated and managed by DIPAM, seller/ promoters liabilities on NINL has been frozen upto 31.03.2021.

(iii) Reconciliation of accounts with NINL duly signed by MMTC & NINL has been done upto 31.03.2022 with outstanding balance of ? 3463.11 crore. NINL’s confirmation of balance of? 3463.11 crore as on 31.3.2022 has been obtained. This does not include Interest for the year 2021-22.

(iv) The company has also given corporate guarantees amounting to? 1345.82 crore (P.Y. ? 1345.82 crore) in favour of FIs/Banks/others to secure the loans availed by NINL (note 34 (iii)). Since NINL is unable to service the interest of lenders, some of the lenders and bond holders have invoked the corporate guarantees, which are being addresseds by NINL/MMTC separately. NINL is showing ? 1295.82 crore in its books against corporate guarantees given by MMTC. NINL has paid all bankers/Flls/ Bond Holders in July 22 and accordingly MMTC has written to all Bankers/ FI Is / Bond Holders to treat MMTC Corporate Guarantee (CG) as Null and Void and to return the original guarantee at the earliest.

(v) The company has been recognising trade related interest during earlier years on accrual basis and is included in the outstanding advances. However, during 2019-20 & 2020-21 interest of ? 252.18 crore & ? 295.69 crore respectively was not recognised in the respective years which has been recognised during the year. Further as per the provision of waterfall agreement signed for distribution of divestment proceeds signed pursuant to divestment process initiated and managed by DIPAM, seller/ promoters liabilities on NINL has been frozen upto 31.03.2021. Interest for the year 2019-20 and 2020-21 has been recognised as other trade income during the current year however interest for the year 2021-22 has not been recognised. Deferred tax asset created during 2020-21 has been reversed in the current year.

(vi) NINL have given corporate gurantee of ?2800.00 crore (P.Y. ? 2800.00 crore) to the company to secure credit facilities extended to them from time to time. After divestment NINL and receipt of funds by MMTC, NINL Corporate Gurantee (CG) is no more valid.

(vii) NINL has been incurring losses for last 10 years and its net worth has become negative ? (-) 3487.41 crore as on 31.03.2021 (P.Y. ? (-) 2564.71 crore as on 31.3.2020). Audited financial statements of NINL as on 31.3.2022 are not available as NIN L is yet to finalise its audited accounts for the year 2021-22.

(viii) The final bid of ? 12,100 crores received from Tata Steel Long Product (TSLP) against NINL divestment. NINL disinvestment completed on 04.07.2022 and MMTC receipts are:-

Amount towards operational&&financial debt. - ?3463.11 crore

Amount towards sale consideration - ? 1872.34 crore

(Net of withholding tax against Investment of ?459.10 crore)

Total Receipt by MMTC - ? 5335.45 crore

(ix) Over the above, an amount of ? 911.16 crore towards contingent liabilities on account of Govt, dues (? 36.77 crore -Non Tax liabilities & ? 874.39 crore - Tax liabilities) have been provided for in an interest bearing Escrow Account which shall be passed on to Sellers in the ratio of their stake holding, if the liabilities are not crystallised by the end of retention period (2 years for non - tax liabilities and 3 years for tax liabilities).

(x) Out of realisation of ? 5335.45 crores, the estimated liabilities towards bank loan, Anglo Coal, dues to employees including VRS/ VSS and others liabilities may be in the range of? 5200.00 crore to ? 5300.00 crore estimated in July 2022. This will be subject to actual settlement of liabilities/audit/reconciliation and direction from Ministry/ competent authority. This does not include contingent liabilities.

d) The Company has filed a recovery suit of ? 31.40 crore against M/s AIPL in respect of Mint sale transaction (P.Y. ? 31.40 crore) which included overdue interest of ? 2.95 crore (P.Y. ? 2.95 crore) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of? 167.20 crore (P.Y. ? 167.20 crore) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion, MMTC imported onion from July 2019 onwards until 31.03.2020. As per the scheme MMTC’s trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The difference between the sale realisation and cost incurred including MMTC''s margin has been shown as claim receivables from Govt, which will be adjusted with the advance received from Govt.

f) A claim for ? 1.53 crore (P.Y. ? 1.53 crore) against an associate on account of damaged imported Polyester is pending for which a provision of ? 1.53 crore (P.Y. ? 1.53 crore) exists in the accounts after taking into account the EMD and other payables. The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) At RO Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of ?4.13 crore (P.Y. ? 3.98 crore) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at ? 8.60 crore (P.Y. ? 8.60 crore), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

h) At RO Hyderabad, fake bills of lading covering two shipments of copper valued at ? 3.75 crore (P.Y. ? 3.75 crore) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier. The amount of ? 4.44 crore for this transaction received in full and final settlement from the local buyer which includes in Advance received from customer under other non-cunent liabilities.

I) In a case relating to execution of decree filed by a foreign party against the coal supplier. MMTC has settled the original amount. The hearings are in progress and next date of hearing 22.7.2022.

j) FCI in March 2019 approached MOC&A.F&PD for initiation of Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD) proceedings against MMTC for an amount of ? 92.18 crores, including interest as MMTC had deducted an amount of ? 60.99 crores from FCI’s payment in May 2014. MMTC explained its position that an amount of ? 60.99 crores was deducted from wheat exports in 2014 to recover MMTC’s dues from FCI arising from multiple transactions since 1991 onwards. The matter was admitted for resolution under AMRCD. The AMRCD committee in its meeting held on 22 May 2020 directed both MMTC and FCI to reconcile the accounts. MMTC and FCI have since begun working towards reconciliation of the claims and counter claims. Numerous rounds of discussions have taken place between MMTC and FCI, wherein the supporting documents have been exchanged between both the parties to establish their claims and counter claims, respectively. Once a consensus is reached, subsequently a report will be presented to AMRCD for its final decision and order.

k) There are several provision for doubtful recoverable amounting to ? 1.13 crore, the recoverability assessment of these balances could not be performed due to non-availability of sufficient information. The company has initiated an internal note to prepare a guideline to assess the recoverability of such balances.

l) There was an outstanding liability of TDS amounting ? 2.36 crores for the month of March of March, 2022 which was payable on or before 30.04.2022. MMTC liquidity position is very weak and salaries/dues/expenses are in arrears accordingly due to paucity of funds. There was delay in deposit of TDS and the same was remitted on 19.05.2022 to the department along with interest of?0.097 crores.

m) The Board of Directors has in principle approved for closure of Regional Offices (RO) and Sub Regional Offices (SRO) Accordingly suitable order has been issued on dated 22.06.2022 and tentative VRS consent has been opened subject to necessary approval.

37. Financial Instruments- Fair Values and Risk Management37.3 Financial risk management, objectives and policies

The company''s activities expose it to the following financial risks:

- market risk -credit risk and -liquidity risk

The company has not arranged funds that have any interest rate risk,

a) Market risk

(i) Foreign Exchange Risk

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short-term foreign currency loans (buyer''s credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company''s risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The company has no exposure in respect of foreign currency receivable/payable since loss/gain is to the account of the Associate supplier/customer. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2022 and March 31, 2021, every 1% increase or decrease of the respective foreign currencies compared to ourfonctional currency would impact our profit before tax by approximately ? NIL and ? NIL, respectively,

(i) Price Risk

The company’s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31,2022 and March 31,2021, every 1 % increase or decrease of the respective equity prices would impact other component of equity by approximately ?0.11crore and? 0.02 crore, respectively. It has no impact on profit or loss,

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company’s outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV''s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company’s historical experience for customers, present economic condition and present performance of the customers, future outlook forthe industry etc. are taken into account for the purposes of expected credit loss.

Credit risk exposure

Trade receivables are generally considered credit impaired when overdue for more than three years (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired though overdue are of good credit quality.

With regard to certain trade receivables, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due. Otherfinancial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc. are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality,

a) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company arranges credit from bank and maintains balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The table includes both principal & interest cash flows.

39. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 “Impairment of assets”

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to ? Nil crores (P.Y. ? Nil crore) has been made during the year.

40. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”40.1 General description of various employee’s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company’s expected contribution for FY 2022-23 towards the Gratuity Fund Contribution is ? 2.42 crore (P.Y. ? 3.78 crore). However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave Compensation:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year. The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under

(i) Service Award:

Service Award amounting to ? 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to ? 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(iii) Employees'' Family Benefit Scheme

Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of ? 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum ? 12,000/- on rendering service of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to ? 5,00,000/- (Officer), ? 4,00,000/- (Staff) and ? 3,00,000/-(Worker) upon retirement

d) Provident Fund: The Company''s contribution paid/payable during the year to Provident Fund and the liability is recognized on accrual basis. The Company''s Provident Fund Trust is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-d-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

e) Superannuation Pension Benefit - During the year, the Company has recognized ? 4.06 crore (P.Y. ? 4.56 crore) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ‘Defined Contribution Scheme’ as under:

a. The liability @ 1.50% of PBT for the year in respect of scheme for retirees prior to 1.1.2007 (closed group) has been not been recognised on the basis of affordability even though company has reported profit before tax ? 120.60 crore during the year. Also, the company has not provided for PRMBS for open group @ 4.50% Baisc DA for serving employees. During the year provision in respect retirees after 1.1.2007 pertaining to year 2019-20 & 2020-21 has been withdrawn due to loss during those year. Same will be reviewed during FY 2022-23

b. During 2019-20, the company has created trust for management of fund and paid ?150.00 crore to trust against company''s liability towards the scheme. Net Liability has been shown as company''s obligation as on 31.3.2022 under ''Defined Contribution Scheme''.

41. Disclosure in respect of Indian Accounting standard (Ind AS)-108: “Operating Segments”

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:- Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others.

Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans

and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities

include liabilities and provisions directly attributable to respective segment.

(b) ContractAssets

Company recognises contract assets when it satisfies its obligation by transferring the goods or services to the customer and right to receive the consideration is established which is subject to some conditions to be fulfilled by the company in future before receipt of consideration amount. Being a trading company performance obligation of the company is satisfied upon transferring a promised goods or service to its customers and there is no obligation on the part of the company which remains unexecuted.

(c) Contract Liabilities

Upon execution of contract with the customers, certain amount in the form of EMD, Security Deposit, Margin Money, advance for payment of custom duty etc. received from the customers which is shown as advance received from customers underthe heading "Other Financial Liabilities” and “Other Liabilities”

During the year company has recognized revenue of ? Nil crore (P.Y. ? Nil crore) from the performance obligations satisfied in earlier periods by raising debit/credit notes to its customers.

The company has made the adjustment of ? Nil crore (P.Y ? Nil Crore) in the revenue of ? Nil crore ( P.Y. ? Nil crore) recognized during the year on account of discounts, rebates, refunds, credits, price concessions, incentives performance bonuses etc. as against the contracted revenue of'' Nil crore (P.Y. ? Nil crore).

(d) Practical expedients

During the year company has entered into sales contracts with its customers where some of the part is yet to be executed, same has not been disclosed as per practical expedient as the duration of the contract is less than one year or right to receive the consideration established on completion of the performance by the company.

B. Significant judgements in the application of this standard

(i) Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers. Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.

(ii) The company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, GST etc.).

(iii) The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Any further adjustment will be made by raising debit/credit notes on the customer. While determining the transaction price effects of variable consideration, constraining estimates of variable consideration, the existence of a significant financing component in the contract, non-cash consideration and consideration payable to a customer is also considered.

(iv) Certain adjustments have been made during the year in contract value which is not significant keeping in view the amount involved.

C. Assets Recognised from costs to obtain or fulfill a contact with a customer

Being a trading company, costs incurred by the company are fixed in nature with no significant incremental cost to obtain or fulfill a contract with a customer and same is charged to profit and loss as a practical expedient.

1. Due accrual to interest related to borrowings.

2. Due recognition of interest on trade related advance to NINL amounting to ? 547.87 crore during the year.

3. Due to decrease in purchase during the year.

4. Due to decrease in sale during the year.

49. Other Statutory Information

a) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b) The Company do not have any transactions with companies struck off

c) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

d) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year

e) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

f) The Company have not received any fund from any person(s) orentity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

g) The Company do not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

h) The company is not in contravention with the number of layers prescribed under section 2(87) of the Act

i) The Company has not entered into any Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Act

j) The company has not been declared wilful defaulter by any bank or financial institution or other lender

50. The accounts of certain trade receivables, trade payables, short and long term loans and advances, other non-current and current Assets are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year’s financial statements.

In the opinion of the management, the assets other than property plant and equipment, intangible assets and non-current investments are expected to realize at the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts.

51. MMTC limited is operating in seven business segments Precious Metals, Metals, Minerals, Coal and Hydrocarbon, Agra Products, Fertilizers and General Trade/ others. The business has been impacted due to the instruction of administrative ministry for downsizing/VRS /Closure of offices etc. This has affected the financial performance of the company.

52. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of ? 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

53. Accounting policies and notes attached form an integral part of the financial statements.

54. Amount in the financial statements are presented in ? crore (upto two decimals) except for per share data and as otherwise stated. Certain small amounts may not appear in financial statements due to rounding off in ? in crore. Previous year’s figures have been regrouped/rearranged wherever considered necessary.

55. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 08.07.2022.


Mar 31, 2021

i. All Non-Current Investments in Equity Instruments of Subsidiaries and Joint Ventures are carried at cost less impairment in value of investment, if any. The Investment in Equity Instruments of others are carried at Fair Value.

ii. The Company had invested '' 33.80 crore (P.Y '' 33.80 crore) towards 26% equity in SICAL Iron Ore Terminal Limited (SIOTL), a Joint Venture for the construction and operation of iron ore terminal at Kamrajar Port. The construction of terminal was completed by November 2010, the same could not be commissioned due to restrictions on mining, transportation and export of iron ore. After due tender process, Kamrajar Port Ltd (KPL) has allowed to SIOTL for necessary modifications to also handle common user coal. MMTC''s Board of Directors during its 428th meeting held on 14.09.16 approved MMTC''s exit through open tender mechanism from the JV. Accordingly, bids were invited from interested bidders for sale of MMTC''s equity. No bids were received in the tender process. However, the lead promoter (i.e. M/s Sical Logistics Ltd) has agreed to buy MMTC''s equity at the reserve price of '' 34.26 crore. Accordingly, the Share Purchase Agreement (SPA) has been signed and in terms of the agreement M/s SICAL Logistics Ltd have deposited '' 0.50 crore with MMTC towards performance of the Agreement. As per terms of SPA, M/s SIOTL applied to M/s Kamrajar Port Ltd for NOC/Permission of MMTC''s exit from the JV. The NOC was received in Oct 2019. However, balance payment has not been received so far. Keeping in view the delay in receipt of share purchase value from M/s SICAL Logistics Ltd and financial distress of M/s Sical Logistics Ltd, a provision has been created for '' 33.80 crore towards impairment in value of investment on SIOTL. Accordingly the investment has been shown as ''held for sale''.

Further the company lodge a claim of '' 34.26 crore with Corporate Insolvency Resolution Professional appointed by NCLT pursuant to application by parties under Insolvency and Bankruptcy Code 2016.Meanwhile KPL issued notice of intent to terminate to SIOTL on 21.12.2020.The company file a writ petition on 24.06.2021 in Madras High Court against the termination notice issued by KPL.

iii. Government of India has accorded ''in principle'' approval for divestment of 100 % equity of MMTC in NINL. The process of divestment is underway through DIPAM. Accordingly, the investment has been shown as investment ''held for sale''.

iv. Against the initial investment of 5.20 crore equity shares of '' 5 each amounting to '' 26.00 crore in the Indian Commodity Exchange (ICEX) [representing 26% holding of the Company in ICEX], the Company divested 2 crore equity shares at a premium of 100% during 2015-16. A Right Issue at a 100% premium was brought out by ICEX in February/March 2016 that got fully subscribed. Again during FY 2016-17, ICEX brought out Right Issue at 100% Premium that also got fully subscribed. MMTC did not participate in the above Right Issues. MMTC''s holding as on 31.03.2021 is 6%.

MMTC valued its equity holding in ICEX at book value of ICEX at '' 7.84 crore as at 31.3.2021 (P.Y. '' 7.84 crore). The equity shares of ICEX are not listed at any stock exchange in India as on 31.03.2021. MMTC has invited Request for Proposal (RFP) for divestment of 6% equity in ICEX and accordingly the investment has been shown as ''held for sale'' as on 31.3.2021.

SEBI has granted the additional timeline till December 31, 2021 to comply with the shareholding limits as per SECC Regulations, 2018.

made. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. CBI also investigated the case. The Hon''ble Supreme Court of India has set aside the order of amalgamation of NSEL with FTIL.

During pendency of SLP, Civil suit & notice of motion filed by MMTC was stayed, which may resume after disposal of above mentioned SLP.

Meanwhile State of Maharashtra has challenged a Judgment dated 22.08.2019 of Bombay HC via SLP (Civil) No.21128-29 of 2019 before the Hon''ble Supreme Court of India. Said order dated 22.08.19 held that NSEL shall not fall within the definition of "Financial Establishment". MMTC has also filed intervention application in the said SLP which is pending adjudication. The matter came for final disposal on 02.02.2021. However, the Hon''ble Court adjourned the matter. Next date of hearing is awaited.

(ii) During the year a provision of '' Nil crore (P.Y. '' 0.36 crore) has been made against advance for project development to HFTWPL & KFTWPL. Total Provision as on 31.03.2021 is '' 16.30 crore (P.Y. '' 16.30 crore)

a) As taken, valued and certified by the management.

b) Inventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 2021. Valuation of closing stock at market price being lower than cost, has resulted in a loss of '' 1.59 crore (P.Y. '' 7.50 crore).

c) Stock-in-trade includes the following:

(i) 9036 units (P.Y. 39936 units) Certified Emission Reductions (CERs) valued at '' 1 (P.Y. '' 1) as per Ind AS-2 ''Inventories'', being lower of cost or net realizable value.

(ii) Nil units (P.Y. Nil units) number of CERs under certification.

(iii) An amount of '' 4.91 crore (P.Y. '' 5.13 crore) has been spent on account of Depreciation, O&M cost of Emission Reduction equipment.

d) Stock in Trade includes an inventory of '' Nil crore (P.Y. '' 22.18 crore) valued at cost relating to onion imported under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion. (Refer note 36(e)).

e) MMTC has been supplying imported Coking Coal to NINL pursuant to marketing agreement between MMTC and NINL. A decision was taken by promotors to shut down the plant in March, 2020 and it was also decided by MMTC that no further supply of Coking Coal shall be made to NINL. MMTC had imported 79848 MT of Goonyella Coking Coal in February''2020. In addition, MMTC was holding stocks of 15853 MT Blackwater Soft Coking Coal at Paradip port which was imported earlier and was not delivered to NINL. MMTC made attempts to dispose off the coal stocks by floating domestic and international tenders many times but due to unsatisfactory response, efforts were made to sell the coal to PSUs viz. RINL/SAIL. SAIL had initially committed to buy this coal but later refused to purchase the same citing unacceptable quality of the coal.

Thereafter, the stocks were disposed off through open tenders. The purchase cost of Goonyella Coking Coal i.e. 79848 MTs is '' 111 crore (approx.) excluding GST Cess and the purchase price of Black Water Soft Coking Coal is '' 17.23 crores (approx.) excluding GST Cess for a balance quantity of 15853 MT. During the FY 2020-21, 93119.49 MT of Coking Coal has been sold for 74.16 crore. with a loss of '' 37.66 crore.

• The loans have not been guaranteed by any of the director or others.

• The loans have been taken from Banks under Cash Credit/Packing Credit Accounts/Others and are repayable within one year. Interest payable on loan repayable on demand is based on MCLR plus spread of banks.

MMTC has been facing liquidity crisis for long time and also made default in repayment of loans due and monthly interest payment to banks from September 2020 (finance cost of '' 198.48 includes accrued interest of '' 84.48 crore). As per directives of Board, MMTC requested all lender banks for restructuring of loan in terms of RBI Circular no. RBI/2020-21/16 DOR No.BP/BC/3/21.04.048/2020-21 dated 06.08.2020 for resolution of Covid-19 related stress. The loan resolution plan was approved by all lender banks and was implemented w.e.f. 08.06.2021. Principal amount of loan outstanding as on the date of implementation of resolution plan was '' 2272.25 crore. Requisite information and / records were shared with banks and subsequently company and lender banks have signed Master Debt Resolution Agreement (MDRA), Trust and Retention Account Agreement (TRA) and other necessary documents thereto on 08.06.2021.

Post implementation of loan restructuring, MMTC account with all the lender banks to be regular/ standard with all the lender banks. By signing the documents, lenders waived existing event of default and no civil action or proceeding may be invoked under IBC. Under this scheme, the company has got moratorium/ deferment on recovery of interest for credit facilities upto 08.12.2021 for SBI and 31.03.2022 for other banks and for principal upto 31.03.2022 for all banks. The outstanding loan and accrued interest are to be repaid mainly through disinvestment proceeds of Neelachal Ispat Nigam Limited (NINL). It may be affected by outcome of legal cases, Anglo Coal case, Government directives and Covid-19 pandemic situation etc. GOI administrative Dept. i.e Dept. of Commerce has been duly informed.

(i) Represents provision towards equity investment in SICAL Iron Ore Terminal Ltd.

(ii) Exceptional items includes an amount of claim by a foreign supplier relating to import of coking coal in the year 2008-09 for supply to NINL (a JV company) for an amount of USD 7.872 crore and cost of arbitration USD 0.098 crore along with interest, which was finally decided by Hon''ble Supreme Court vide SC judgement dt.17.12.2020 and restored the arbitration award & Judgement dated 12.5.2014. In the meanwhile MMTC had filed a Review Petition on 16.01.2021 which was listed on 03.02.2021 and SC allowed open court hearing limited to the issue of interest part. The Hon''ble Supreme Court on 29.07.2021 directed to pay pendente lite and future interest at 6% simple interest. Accordingly, MMTC has made a provision of 877.43 crore (inclusive of claim of '' 583.15 crore& interest of 294.28 crore).

In compliance with the order dated 22.5.2019 passed by the Hon''ble Delhi High Court, the Company deposited the title deeds of immovable properties with the Registrar. After the favourable order, the company had filed application seeking inter alia dismissal of the execution /enforcement petition filed by the claimant but the claimant submitted that they are presently in the process of assailing the decision

of the Division Bench to set aside the award, by preferring a Special Leave Petition before the Hon''ble Supreme Court. The Court vide its order dated 15th July, 2020 dismissed the enforcement petition as infructuous and ordered that the title deeds deposited by the company will be retained by the Registrar General of the Delhi High Court for a further period of 12 weeks and will be thereafter released to the company, subject to any orders passed by the Hon''ble Supreme Court in this regard. The title deeds of immovable properties is still with the Registrar of Delhi High Court. The Hon''ble Delhi High court after hearing the execution petition plea of M/s Anglo Coal, has directed vide order dtd.03.03.2021 to deposit '' 585.94 crore within two months from the date of the said order. Due to financial crisis the company could not be complied with order. The execution matter is being pursued in Hon''ble Delhi High Court pursuant to attachment of some of the MMTC''s properties /Bank account. As per order dated 28.9.2021, MMTC was directed to deposit '' 1000 crore with the court from surplus of the divestment proceeds of NINL after discharging the dues of Bankers as per Master Debt Agreement dated 8.6.2021. Next date of hearing is as per latest order is 29.11.2021.

Though MMTC has been regularly updating NINL on the progress of legal case pertaining to Anglo Coal and have been repeatedly requesting NINL to provide for in the books of NINL, contingent liability arising out of Anglo Coal dispute, as the procurement was initiated by MMTC for NINL only. MMTC has sent various communications in this regard to NINL. However, NINL had not been made a party in legal proceedings against Anglo Coal by MMTC.

The Agenda Item pertaining to Anglo coal dispute was placed on table vide item no. 10 of 165th meeting of Board of Directors of NINL held on 27.05.2019. Chairman NINL on the Agenda tabled, briefed the Board on the transaction with Anglo Coal and current status of the legal case. Chairman, NINL also explained that MMTC as a sole and exclusive agent for procurement of raw materials on behalf of NINL had taken measures in the interest of NINL. The import of coking coal was meant for NINL only. It was also informed that MMTC has been and will continue to take all possible measures and legal recourse to defend the matter. However, the decision to reflect the liability in NINL was not taken even though it had been reflected against NINL in the Annual reports of MMTC without provisioning.

The nominee Directors of steel and mines, Government of Orissa, IPICOL and OMC expressed that the liability on account of Anglo coal dispute cannot be disclosed in the statement of accounts of NINL, since, the said liability does not accrue to NINL as the latter is not party to the contract. They further advised not to place such items as tabled items.

MMTC has mentioned Anglo Coal as contingent liability on account of NINL in MMTC''s books of account from the FY 2009-10 to 2018-19 which have been audited by C&AG and approved by AGM. No provisioning have been made till 2018-19 in its books of account of MMTC for Anglo coal liability as it has been mentioned in the accounts of 2013-14 to 2018-19 that the liability on this account is to be borne by NINL. Pursuant to Hon''ble Supreme Court order the contingent liability of '' 1607 crore approx. appearing in the accounts of MMTC was again taken up by MMTC and was deliberated again in the 175th meeting of Board of Directors of NINL held on 18.02.2021. The decision minuted in NINL Board was "The Contingent Liability of 1607 crore approx. appearing in the accounts of MMTC was deliberated and OMC informed that they have already sent a formal communication that these liabilities cannot form a part of liabilities in NINL books of accounts. NMDC also reiterated the observation of OMC in this regards. The stand taken by DIPAM on the issue on the reference of MMTC and Department of Commerce, Ministry of Commerce & Industry was also discussed."

Again during 176th meeting of Board of Directors of NINL held on 06.03.2021, the contingent liability on account of Anglo Coal appearing in the accounts of MMTC was again raised by nominee Directors of MMTC and OMC informed that that they have already sent formal communication that this liability can''t form a part of liabilities in NINL books of accounts. NMDC also reiterated the observation of OMC.

Post crystallization of this liability, MMTC vide its letter dated 07th September, 2021 lodged a formal claim on NINL seeking to incorporate this firm liability in the Books of Accounts of NINL.

In this regard, vide 180th meeting of Board of Directors of NINL held on 13.09.2021, the claim of MMTC was deliberated. Nominee Directors of MMTC had strongly emphasized that the transaction was done only on behalf of NINL and the liabilities arising therefrom cannot be denied by NINL. However, the

Board of NINL decided, by way of majority, that the liability cannot be passed on to NINL. MMTC directors had also informed in the meeting that MMTC shall be seeking an opinion on the subject from a senior Govt. Counsel and shall submit the same along with decision of NINL Board to DoC/DIPAM for resolution.

Further to the above, vide 182nd meeting of Board of NINL held on 24.09.2021, while deliberating on the provisional accounts of NINL for FY 2020-21, the issue pertaining to liability on account of Anglo Coal dispute after crystallization of amount was again raised by nominee directors of MMTC, as the same has the bearing on MMTC''s books of accounts for FY 2020-21, which is under finalization. However, all other Board Members refused to accept said liability in the books of NINL and the provisional accounts of NINL for 2020-21 was passed without incorporating the liability on account of Anglo Coal. The provisional accounts have been submitted to DIPAM by NINL on 28.09.2021.

MMTC had also sought an opinion from Learned AG regarding accrual of the liability of Anglo Coal on NINL. He opined that MMTC claim on NINL that it''s too late in the day for MMTC to initiate legal proceedings against NINL as limitation period has expired.

The company is exploring available legal recourse against Anglo Coal.

ia) Guarantees issued by Banks on behalf of the Company '' 3.66 crore (P.Y. '' 3.87 crore) in favour of customer towards performance of contracts against which backup guarantees amounting to '' Nil crore (P.Y.

'' 0.59 crore) have been obtained from associate suppliers.

ii) Letters of Credit opened by the Company remaining outstanding '' 8.50 crore (P.Y. '' 8.27 crore).

iii) Corporate Guarantees of '' 1345.82 crore (P.Y. '' 1345.82 crore) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL), a Joint Venture Company, for securing principal and interest in respect of loans to NINL. (Refer 36 c (iv))

iv) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

v) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

vi) * An amount of '' 128.89 crore (@7.50%) towards interest liability for the period 1.10.2009 to 24.9.2012 which has not been provided. Providing of interest for the period from 1.10.2009 to 24.09.2012 may not be prudent at this stage as the learned AG has opined that any ambiguity arising from the Hon''ble Supreme Court order dated 29.7.2021 could be resolved by the court itself.

35. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is '' Nil (P.Y. '' Nil crore).

Capital commitment in respect of investment in joint venture '' Nil crore (P.Y. '' Nil crore).

b) 3956.494 kgs (P.Y. 7970.788 kgs) of un-refined Silver is lying in DRO as on 31.3.2021 on behalf of Shri

Mata Veshno Devi Shrine Board. The value of the stock cannot be ascertained as fineness of the Silver in

not known.

c) Investment in and advances to Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company :-

(i) The company alongwith Government of Odisha has set up a 1.1 MT integrated steel plant in Odisha and invested '' 459.11 crore (P.Y. '' 459.11 crore) (Note 6) towards 49.78% in equity capital in NINL. The Government of India (CCEA) has accorded ''in principle'' approval on 8th January, 2020 for strategic divestment of equity investment held by MMTC and other Central/State PSUs. The process of divestment is underway through Department of Investment and Public Asset Management (DIPAM). The EOI has been invited by DIPAM and application for interested parties have been received and shortlisting of technically qualified parties are in process. Once this process is done, Request for proposal will be invited for technically qualified parties.

(ii) The company has been extending, from time to time, short term credit facility (cash credit) to NINL upto a limit of '' 1425.00 crore for its day to day operational activities on continuing basis. In addition, a trade related financial facility to the extent of 1875.00 crore has also been extended. Against this, outstanding under Other Assets (advances to related parties) (note 11) is '' 3528.47 crore (P.Y. '' 3221.00 crore) inclusive of interest of '' 252.18 crore & '' 295.69 crore not recognised as income for 2019-20 & 2020-21 respectively.

(iii) Reconciliation of accounts with NINL duly signed by MMTC & NINL has been done upto 31.03.2021 with outstanding balance of '' 3528.47 crore. NINL''s confirmation of balance of '' 3528.47 crore as on 31.3.2021 is subject to finalization of NINL''s annual accounts, but the same was informed in last NINL''s Board Meeting.

(iv) The company has also given corporate guarantees amounting to '' 1345.82 crore (P.Y. 1345.82 crore)

in favour of FIs/Banks/others to secure the loans availed by NINL (note 34 (Mi)). Since NINL is unable to service the interest of lenders, some of the lenders and bond holders have invoked the corporate guarantees, which are being addressed by NINL/MMTC separately. NINL is showing '' 1295.82 crore in its books against corporate guarantees given by MMTC.

(v) The company has been recognising trade related interest during earlier years on accrual basis and is included in the outstanding advances. However, during 2019-20 & 2020-21 interest of '' 252.18 crore & '' 295.69 crore respectively is not recognised due to delay in divestment of NINL which is under divestment through DIPAM.

(vi) NINL have given corporate gurantee of 2800.00 crore (P.Y. '' 2800.00 crore) to the company to secure credit facilities extended to them from time to time.

(vii) NINL has been incurring losses for last 9 years and its net worth has become negative '' (-) 2564.71 crore as on 31.03.2020 (P.Y. '' (-) 956.49 crore as on 31.3.2019). Audited financial statements of NINL as on 31.3.2021 are not available as NINL is yet to finalise its audited accounts for the year 2020-21.

(viii) Considering the likely valuations of NINL and expected divestment proceeds, the Management has considered its investment and advances as good.

d) The Company has filed a recovery suit of '' 31.40 crore against M/s AIPL in respect of Mint sale transaction (P.Y. '' 31.40 crore) which included overdue interest of '' 2.95 crore (P.Y. '' 2.95 crore) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of '' 167.20 crore (P.Y. '' 167.20 crore) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of onion, MMTC imported onion from July 2019 onwards until 31.03.2020. As per the scheme MMTC''s trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The difference between the sale realisation and cost incurred including MMTC''s margin has been shown as claim receivables from Govt. which will be adjusted with the advance received from Govt. The stocks have been stored in CWC/SWC/Other godowns in Mumbai.

f) A claim for '' 1.53 crore (P.Y. '' 1.53 crore) against an associate on account of damaged imported Polyester is pending for which a provision of '' 1.53 crore (P.Y. '' 1.53 crore) exists in the accounts after taking into account the EMD and other payables. The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) At RO Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of '' 3.98 crore (P.Y. '' 4.12 crore) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at '' 8.60 crore (P.Y. '' 8.60 crore), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

h) At RO Hyderabad, fake bills of lading covering two shipments of copper valued at '' 3.75 crore (P.Y. '' 3.75 crore) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier. The amount of '' 4.44 crore for this transaction received in full and final settlement from the local buyer which includes in Advance received from customer under other non-current liabilities.

i) Hon''ble Delhi High Court has directed the Company to deposit '' 39.62 crore (P.Y. '' 39.62 crore) stated to be receivable by one of the Company''s coal suppliers as per their books of accounts from MMTC in a case relating to execution of decree filed by a foreign party against the coal supplier. MMTC has filed application and counter affidavit stating that the supplier''s contractual obligations are yet to be discharged and MMTC is unable to deposit any amount at this stage. Any amount found payable to the supplier after resolution of all issues, the same will be deposited with the court instead of releasing to the supplier without any liability

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short term foreign currency loans (buyer''s credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company''s risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The following tables show the summary of quantitative data about the company''s exposure to foreign currency risk from financial instruments expressed in '':

The company has no exposure in respect of foreign currency receivable/payable since loss/gain is to the account of the Associate supplier/customer. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2021 and March 31, 2020, every 1% increase or decrease of the respective foreign currencies compared to our functional currency would impact our profit before tax by approximately '' NIL and '' NIL, respectively.

(i) Price Risk

The company''s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31, 2021 and March 31, 2020, every 1% increase or decrease of the respective equity prices would impact other component of equity by approximately '' 0.02 crore and '' 0.01 crore, respectively. It has no impact on profit or loss.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company''s outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV''s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company''s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc. are taken into account for the purposes of expected credit loss.

Credit risk exposure

Trade receivables are generally considered credit impaired when overdue for more than three years (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired though overdue are of good credit quality.

With regard to certain trade receivables, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc. are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting

date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality.

c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company arranges credit from bank and maintains balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The table includes both principal & interest cash flows.

38. Impact of Hedging Activities38.1 Cash Flow Hedge

As at 31st March 2020 there was no outstanding Hedging Instrument on account of the company.

38.2 Fair Value Hedge

As per the Risk Management Policy, the company enters into forward contracts with commodity exchanges to hedge against price fluctuations in gold and silver inventories. The gain or loss on the hedging instrument is recognized in profit or loss. The hedging gain or loss on the hedged item adjusts the carrying amount of the hedged item and is recognised in profit or loss.

39. Disclosure in respect ot Indian Accounting Standard (ind as)-36 "impairment ot assets"

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to '' Nil crores (P.Y. '' Nil crore) has been made during the year.

40. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

40.1 General description of various employee''s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company''s expected contribution for FY 2021-22 towards the Gratuity Fund Contribution is '' 3.78 crore (P.Y. '' 4.29 crore). However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave Compensation:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under-

(i) Service Award:

Service Award amounting to 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(iii) Employees'' Family Benefit Scheme

Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum 12,000/- on rendering service of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to 5,00,000/- (Officer), 4,00,000/- (Staff) and 3,00,000/- (Worker) upon retirement

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under:

d) Provident Fund: The Company''s contribution paid/payable during the year to Provident Fund and the liability is recognized on accrual basis. The Company''s Provident Fund Trust is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

e) Superannuation Pension Benefit - During the year, the Company has recognized '' 4.56 crore (P.Y. '' 5.09 crore) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ''Defined Contribution Scheme'' as under:

a. The liability for the year 2020-21 in respect of scheme for retirees prior to 1.1.2007 has been Nil (1.50% of PBT) due to company has reported loss during the year and @ 4.50% of Basic DA paid during 2020-21 in respect of scheme for retirees after 1.1.2007, as per the defined contribution scheme.

b. During 2019-20, the company has created trust for management of fund and paid '' 150.00 crore to trust against company''s liability towards the scheme. Net Liability has been shown as company''s obligation as on 31.3.2021 under ''Defined Contribution Scheme''.

c. During the year, total expenses of '' 3.60 crore (P.Y. '' 8.90 crore) has been charged to Profit & Loss Account.

41. Disclosure in respect of Indian Accounting standard (Ind AS)-108: "Operating Segments"

Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:-Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others

Segment Revenue and Expense

Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances etc.

Assets relating to corporate and construction are included in unallocated segments. Segment liabilities include liabilities and provisions directly

attributable to respective segment.

The company has made the adjustment of '' Nil crore (P.Y. '' Nil Crore) in the revenue of '' Nil crore ( P.Y. '' Nil crore) recognized during the year on account of discounts, rebates, refunds, credits, price concessions, incentives performance bonuses etc. as against the contracted revenue of '' Nil crore ( P.Y. '' Nil crore).

(d) Practical expedients

During the year company has entered into sales contracts with its customers where some of the part is yet to be executed, same has not been disclosed as per practical expedient as the duration of the contract is less than one year or right to receive the consideration established on completion of the performance by the company.

B. Significant judgements in the application of this standard

(i) Revenue is recognized by the company when the company satisfies a performance obligation by transferring a promised good or service to its customers. Asset/goods/services are considered to be transferred when the customer obtains control of those asset/goods/services.

(ii) The company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, GST etc.).

(iii) The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Any further adjustment will be made by raising debit/credit notes on the customer. While determining the transaction price effects of variable consideration, constraining estimates of variable consideration, the existence of a significant financing component in the contract, non-cash consideration and consideration payable to a customer is also considered.

(iv) Certain adjustments have been made during the year in contract value which is not significant keeping in view the amount involved.

C. Assets Recognised from costs to obtain or fulfill a contact with a customer

Being a trading company, costs incurred by the company are fixed in nature with no significant incremental cost to obtain or fulfill a contract with a customer and same is charged to profit and loss as a practical expedient.

47. Balances of some of the Trade Receivable, Other Assets, Trade and Other Payable are subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmation/reconciliation.

48. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of '' 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

49. Material impact of CoVID-19 on the business of the company:-

Due to CoVID-19 pandemic Government of India has announced lock down India from time to time to contain the spread of the pandemic. This pandemic has impacted the business of the company which in turn have consequential effect on the profitability as well as liquidity of the company. This has also caused delay in compliance for financial reporting under the provisions of Companies Act, 2013 and LODR 2015. MMTC limited is operating in seven business segment Precious Metals, Metals, Minerals, Coal and Hydrocarbon, Agro Products, Fertilizers and General Trade/ others. Some of the business segments impacted by CoVID-19 effect as given below:-

(i) In minerals due to situation created by COVID-19 the movement of men and material has been adversely affected. Due to this pandemic some of the entities to whom exports are made are working on very less capacity which impacted Iron ore export to these companies.

(ii) In metals segment due to this situation and frequent fluctuation in price customers are reluctant to book the imported material. Empanelled suppliers are not able to ship the committed consignments which results disruption of supply chain.

(iii) In precious metals sale of gold and silver in DTA and SEZ have been affected adversely.

(iv) In other business segments also there is impact due to price fluctuation, supply chain disruption, unable to get new orders and explore the market etc.

50. Accounting policies and notes attached form an integral part of the financial statements.

51. Amount in the financial statements are presented in '' crore (upto two decimals) except for per share data and as otherwise stated. Certain small amounts may not appear in financial statements due to rounding off in '' in crore. Previous year''s figures have been regrouped/rearranged wherever considered necessary.

52. Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on .


Mar 31, 2018

*Refer note 36 (c)

Out of the above, amount due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member is Rs, 0.02 crore (PY. Rs, 0.03 crore).

- Includes Rs, 209.79 crore (PY. Rs, 209.79 crore) recoverable from various borrowers and National

Spot Exchange (NSEL) arising on account of default of payment obligation of NSEL against which full provision of Rs, 209.79 crore (PY Rs, 209.79 crore) has already been made during 2013-14. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. The Government has also issued final order of merger of NSEL with its parent company, Financial Technologies (FTIL) in Feb, 2016. Against this merger order, FTIL has filed a case against Government. MMTC is also one of the intervening party in the legal case supporting the merger. CBI also investigated the case.

a) As taken, valued and certified by the management.

b) I nventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 201 8. Valuation of closing stock at market price being lower than cost, has resulted in a loss of Rs, 0.64 crore (PY. Rs, 4.72 crore) and also includes Rs, 3.00 crore on account of fair value hedge adjustment (Gain) on account of hedging of gold inventory.

c) Stock-in-trade includes the following:

i) 21020 units (PY. 21020 units) Certified Emission Reductions (CERs) valued at Rs, 0.05 crore (PY. Rs, 0.07 crore) and Nil (PY. 21020 units) Verified Carbon Units (VCUs) valued at Rs, Nil (PY. Rs, 0.03 crore) as per Ind AS-2 ''Inventories'', being lower of cost or net realizable value.

ii) Nil number of CERs under certification.

iii) An amount of '' 4.35 crore (PY. '' 4.30 crore) has been spent on account of Depreciation, O&M cost of Emission Reduction equipment.

d) Stock in Trade includes an inventory of Rs, 856.29 crore (PY. Rs, 1921.83 crore) valued at cost relating to pulses imported under Price Stabilization Scheme of the Government of India to create Buffer Stock of Pulses. (Refer note 36(e)).

The Company has one class of share capital, comprising ordinary shares of Rs, 1/- each. Subject to the Company''s Articles of Association and applicable law, the Company''s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

Movements in equity share capital: During the year, the company has neither issued nor bought back any shares.

The Company does not have any holding company.

During the year 2017-18, Board of Directors in their meeting held on 19th March, 2018, approved the issue of bonus shares in the ratio of 1:2 i.e. one bonus share of the face value of Rs, 1/- each for every two shares of the face value of Rs, 1/- each fully paid up held by the shareholders on record date which was subsequently, fixed as 4th May, 2018. Issuance of bonus shares will be done by capitalisation of free reserves to the tune of Rs, 50 crore created out of general reserves and profits of the company. The above mentioned shares were allotted by the share transfer committee in their meeting held on 7th May, 2018 to all eligible shareholders. Consequent to the allotment of bonus equity shares, the paid up share capital of the company stands increased to Rs, 150/- crore divided into 150 crore equity share of Rs, 1/each fully paid up w.e.f. 7th May, 2018.

- The loans have not been guaranteed by any of the director or others.

- The loans have been taken from Banks under Cash Credit/Packing Credit Accounts/ Others and are repayable within one year. Interest payable on loan repayable on demand is based on MCLR plus spread of banks.

- The company has not defaulted in repayment of any loan and interest thereon.

a) I n term of DPE guidelines vide OM dated 3rd Aug 2017 and 4th Aug 2017, the company has revised pay scale of Board level and below Board level Executives w.e.f. 1st Jan 2017 with approval of Board/ Administrative Ministry. Accordingly, liability for the period from 1st Jan 2017 to 31st Mar 2018 amounting to Rs, 11.71 crore (including Rs, 2.41 crore for the period 1st Jan 2017 to 31st Mar 2017) has been made in the accounts during the year.

b) Pay revision of staff cadre employees is also due from 1st Jan 2017 for which final settlement is yet to take place. Keeping in view the past practice, an ad-hoc provision of Rs, 10.45 crore towards the estimated arrears for the period 1st Jan 2017 to 31st Mar 2018 has been made in the accounts during the year.

c) In terms of amendment in the Payment of Gratuity Act w.e.f. 29th Mar 2018 and OM dated 11th April 2018 issued by DPE enhancing ceiling of payment of gratuity to the employees of CPSEs from Rs, 10 Lakhs to Rs, 20 Lakhs provision of Rs, 49.96 crore for all employees (officers and staff) including normal liability on pre revised pay/ceiling has been made in the accounts based on the actuarial valuation as on 31st Mar 2018. Further liability of Rs, 7.00 crore has also been made during the year towards differential gratuity payable to employees (officers and staff) retired during 1st Jan 2017 to 31st Mar 2018.

d) Consequential additional liability in respect of Earned Leave/Half Pay Leave has also been made based on the Actuarial Valuation.

e) During the year (22nd March, 2018) the company notified Voluntary Retirement Scheme and invited applications from employees for opting voluntary retirement with discretion to the management to accept or reject any application without assigning any reason. The said scheme was closed on 20th April, 2018. Total 86 employees had submitted offers opting for VR under this scheme. The management has on 23rd April, 2018 accepted the offers of 65 employees. Accordingly, the termination benefits in the form of ex-gratia and notice pay etc payable to the 65 employees amounting to Rs, 18.26 crore (PY. Rs, Nil) will be recognized in the year 2018-19 in accordance with provisions of Ind AS 19 "Employee Benefits

i) Includes interest of Rs, Nil (PY. Rs, 93.38 crore) claimed from APSCSCL, as per the terms of Agreement between MMTC and APSCSCL, on abnormal delayed receipt of Subsidy of Rs, Nil (PY. Rs, 245.31 crore) from the Government by the Company for supply and distribution of RBD Palmolin and Rs, Nil (PY. Rs, 11.05 crore) towards interest on delayed payment made by APSCSCL as per the agreement which have been accounted for on receipt of the said subsidy.

ii) a) Includes Rs, 4.05 crore (PY. Rs, 3.24 crore) towards liability in respect of an arbitration award against the company on account of claim filed by a foreign supplier against invocation of Performance Bank Guarantee relating to import of urea. The award was challenged by the company in Hon''ble Delhi High Court which was not admitted. The company has since filed Special Leave petition against the said award in the Hon''ble Supreme Court which has been admitted by the Hon''ble Court. However, total liability amounting to Rs, 45.75 crore (PY. Rs, 41.46 crore) towards the claim Rs, 22.64 crore (PY. Rs, 22.53 crore), interest Rs, 21.41 crore (PY. Rs, 17.24 crore) and other cost etc. Rs, 1.70 crore (PY. Rs, 1.69 crore) has been made up to 31.03.2018.

b) Inculdes Rs, 1.60 crore (PY. Rs, Nil) towards arbitration award decided against the company relating to transactions with an Associate. The amount was deposited with Registrar General Delhi High Court on 10th May 2018 after deducting applicable TDS.

ii) Guarantees issued by Banks on behalf of the Company Rs, 15.82 crore (PY. Rs, 15.43 crore) in favour of customer towards performance of contracts against which backup guarantees amounting to Rs, Nil (PY. Rs, 42.57 crore) have been obtained from associate suppliers.

iii) Letters of Credit opened by the Company remaining outstanding Rs, 179.29 crore (PY. Rs, 65.08 crore).

iv) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs, 414.09 crore (PY. Rs, 600.29 crore).

v) Corporate Guarantees of Rs, 1410.56 crore (PY. Rs, 1460.56 crore) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL), a Joint Venture Company, for securing principal and interest in respect of loans to NINL. The company has also issued a comfort letter in respect of a loan of Rs, 180.00 crore given to NINL by a bank against which corporate guarantee amounting to Rs, 90.00 crore has been given by the company. The company has also issued standing instruction (SI) to the bank authorizing the bank to debit company''s bank account @ Rs, 2.50 crore every month and credit the current account of NINL maintained in the same bank during the tenor of the loan i.e. 4 years from Oct, 2014 availed by NINL. Pending commitment against the said SI is Rs, 17.50 crore as on 31.3.2018.

vi) The company entered into a purchase contract with a foreign supplier for import of coking coal for onward sale to NINL (a JV company) in the year 2008-09. Due to non-performance of the contract, the supplier referred the matter for arbitration. An award was decided against MMTC for an amount of Rs, 513.10 crore (USD 7.872 crore @ Rs, 65.18 as on 31.03.2018) (PY Rs, 510.54 crore), cost of arbitration Rs, 6.37 crore (USD 0.098 crore @ Rs, 65.18 as on 31.03.2018) (PY Rs, 6.36 crore) along with interest thereon @ 7.50% p.a. from 30.9.2009 to 12.5.2014 and post award interest @ 15% p.a. from 1st June, 2014 until payment. The company filed petition before the Hon''ble Delhi High Court under section 34 of the Arbitration and Conciliation Act, 1996 against the final award which was not allowed. Against this decision of the court, the company filed an appeal before Hon''ble Division Bench of Delhi High Court that has been admitted by the Hon''ble Division Bench of Delhi High Court. The appeal is yet to come up for regular hearing. In the meantime the party has filed a separate execution petition before separate single bench. The company has requested for disposal of this execution petition stating that the entire matter is pending before the double bench. Next date for hearing has been fixed on 09th July, 2018 for disposal of the execution petition by the single bench.

Pending final out-come of the legal proceedings, the Management has considered it prudent not to make any provision towards the award in its books of accounts as on 31.03.2018, since as per the legal opinion of senior advocate, the company has a strong case for rejection of the supplier''s claim. Further, as per the legal opinion taken by the company, the liability, if any on account of this claim is to be borne by NINL exclusively. The company has communicated to NINL, the legal position on bearing of liability, if any arising out of the referred dispute.

vii) A back to back supplier of steam coal has claimed an amount of Rs, 50.43 crore (PY. Rs, 50.43 crore) towards increased railway freight, belt sampling rejection, rake rejection and interest for delayed payment in relation to Coal Supply on back to back basis to a customer during 2011-12 to 2012-13 which has been disputed by the customer.

viii) Custom department have raised demand of Rs, 180.32 crore (PY. Rs, 179.21 crore) at various ROs on account of differential custom duty/interest/penalty etc. on import of Steam Coal supplied by the company to Power utilities through associate suppliers on back to back terms on fixed margin basis. Also in case of RO Kolkata, Mumbai and Chennai Rs, 17.48 crore (PY. Rs, 17.48 crore), Rs, 21.56 crore (PY. Rs, 21.56 crore) and Rs, 3.32 crore (PY. Rs, 3.32 crore) shown as firm liability respectively in their books of accounts. The liability, if any, on account of custom duty shall be to the account of the backup supplier.

ix) In respect of GR-1 forms pertaining to period prior to 1993-94, outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs, 1.93 crore (PY. Rs, 1.93 crore) which are being contested. Against this, an amount of Rs, 0.03 crore (PY. Rs, 0.03 crore) has been deposited and bank guarantee of Rs, 1.03 crore (PY. Rs, 1.03 crore) furnished.

x) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

xi) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/ Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

1. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is Rs, Nil (P.Y. Rs, 0.08 crore). Capital commitment in respect of investment in joint venture Rs, 3.02 crore (PY. Rs, 8.43 crore)

2. General Disclosures

a) Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 11 (B)) as well as other current liabilities (note no.21).

b) The company has taken decision to replace the existing ERP Package due to various changes taken place in the business model in the recent years and to also meet the latest statutory requirements.

c) Investment in and advances to Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company :

i) The company alongwith Government of Odisha has set up a 1.1 MT integrated steel plant in Odisha and invested Rs, 379.69 crore (PY. Rs, 379.69 crore) (Note 6) towards 49.78% in equity capital in NINL.

ii) The company has been extending, from time to time, short term credit facility (cash credit) to NINL upto a limit of Rs, 1425.00 crore for its day to day operational activities on continuing basis. In addition, a trade related financial facility to the extent of Rs, 550.00 crore has also been extended. Against this, outstanding under trade receivable (note 7) is Rs, Nil (PY. Rs, 231.00 crore), under Other Assets (advances to related parties) (note 11) is Rs, 1786.70 crore (PY. Rs, 966.50 crore) and under Loans (note 8) is Rs, Nil (PY. Rs, 130.00 crore) aggregating to Rs, 1786.70 crore (PY. Rs, 1327.49 crore) as against total net worth of the company of Rs, 1449.45 crore as on 31.03.2018.

iii) The company has also given corporate guarantees amounting to Rs, 1410.56 crore (PY. Rs, 1460.56 crore) in favour of FIs/Banks/others to secure the loans availed by NINL and issued standing instruction to a bank to credit NINL bank account @ Rs, 2.50 crore every month during the tenor of the loan i.e. 4 years from October, 2014 against which pending commitment is Rs, 17.50 crore as on 31.3.2018(note 34 (v)).

iv) The company has recognized trade related interest of Rs, 138.73 crore (PY. Rs, 72.08 crore) and other interest income of Rs, Nil (PY. Rs, 15.40 crore) on the credit facilities extended to NINL which is included in total outstanding.

v) NINL have given corporate gurantee of Rs, 945.00 crore (PY. Rs, 945.00 crore) to the company to secure credit facilities extended to them from time to time.

vi Ministry of Commerce on 4th May 2018 has conveyed approval to the company to infuse an additional equity of Rs, 149.34 crore in NINL subject to contribution of equity by other stake holders and in principle approval by the banks to extend credit facilities in accordance with the revised business plan etc.

vii) NINL has been incurring losses for last 6 years and its net worth has become negative (Rs, (-) 552.05 crore as on 31.3.2018 and Rs, (-) 175.14 crore as on 31.3.2017). Net assets of NINL as per their financial statements, excluding MMTC dues are Rs, 1234.65 crore as on 31.3.2018.

viii) Considering the expected operationalization of iron ore mine owned by NINL during 2018-19, capital repair of blast furnace already undertaken during 2017-18 and upward trend in the price and demand of Steel globally, the Management has considered its investment and advances as good.

d) The Company has filed a recovery suit of Rs, 31.40 crore against M/s AIPL in respect of Mint sale transaction (PY. Rs, 31.40 crore) which included overdue interest of Rs, 2.95 crore (PY. Rs, 2.95 crore) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs, 167.20 crore (PY. Rs, 167.20 crore) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of Pulses, MMTC imported Pulses from July 2015 onwards until 31.03.2017. As per the scheme MMTC''s trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The difference between the sale realized and cost incurred including MMTC''s margin has been shown as claim receivable from Govt. and adjusted against advance received from Govt. pending liquidation of entire stock imported under the scheme. The stocks have been stored at various CWC/SWC/Other God owns in various States and valued at cost.

f) A claim for Rs, 1.53 crore (PY. Rs, 1.89 crore) against an associate on account of damaged imported Polyester is pending for which a provision of Rs, 1.53 crore (PY. Rs, 1.53 crore) exists in the accounts after taking into account the EMD and other payables amounting to Rs, Nil (PY. Rs, 0.36 crore). EMD & other payables of Rs, 0.36 crore which was payable to the party last year has been adjusted against the claim amount of Rs, 1.89 crore which has resulted in reduction of claim receivable. The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) At Regional Office, Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs, 3.55 crore (PY. Rs, 3.53 crore) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs, 8.60 crore (PY. Rs, 8.60 crore), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

h) At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs, 3.75 crore (PY. Rs, 3.75 crore) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier.

i) Hon''ble Delhi High Court has directed the Company to deposit Rs, 39.62 crore (PY. Rs, 39.62 crore) stated to be receivable by one of the Company''s coal suppliers as per their books of accounts from MMTC in a case relating to execution of decree filed by a foreign party against the coal supplier. MMTC has filed application and counter affidavit stating that the supplier''s contractual obligations are yet to be discharged and MMTC is unable to deposit any amount at this stage. Any amount found payable to the supplier after resolution of all issues, the same will be deposited with the court instead of releasing to the supplier without any liability on MMTC. The hearings are in progress.

3. Financial Instruments- Fair Values and Risk Management

4.Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by categories. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

5.Fair Value Hierarchy

- Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

- Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data (unobservable inputs).

The following tables present fair value hierarchy of assets and liabilities measured at

fair value:

6. Financial risk management, objectives and policies

The company''s activities expose it to the following financial risks:

-market risk -credit risk and -liquidity risk.

The company has not arranged funds that have any interest rate risk.

a) Market risk

i) Foreign Exchange Risk

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short term foreign currency loans (buyer''s credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company''s risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The following tables show the summary of quantitative data about the company''s exposure to foreign currency risk from financial instruments expressed in '' :

The company has no exposure in respect of foreign currency receivable/payable since loss/ gain is to the account of the Associate supplier/customer except on provision towards litigation settlement where matter is still under dispute. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

The company has no exposure in respect of foreign currency receivable/payable since loss/ gain is to the account of the Associate supplier/customer except on provision towards litigation settlement where matter is still under dispute. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2018 and March 31, 2017, every 1% increase or decrease of the respective foreign currencies compared to our functional currency would impact our profit before tax by approximately '' NIL and '' NIL, respectively.

a) Price Risk

The company''s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31, 2018 and March 31, 2017, every 1% increase or decrease of the respective equity prices would impact other component of equity by approximately Rs, 0.19 crore and Rs, 0.20 crore, respectively. It has no impact on profit or loss.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company''s outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV''s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of Ind AS 109. The company''s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc. are taken into account for the purposes of expected credit loss.

Credit risk exposure

Trade receivables are generally considered credit impaired when overdue for more than three years (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired though overdue are of good credit quality.

With regard to ceratin trade receivables, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc. are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality.

c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company maintains sufficient balance in cash and cash equivalents to meet short term liquidity requirements.

7. Impact of Hedging Activities

8 Cash Flow Hedge

As at 31st March 2018 there was no outstanding Hedging Instrument on account of the company.

9. Fair Value Hedge

As per the Risk Management Policy, the company enters into forward contracts with commodity exchanges to hedge against price fluctuations in gold and silver inventories. The gain or loss on the hedging instrument is recognized in profit or loss. The hedging gain or loss on the hedged item adjusts the carrying amount of the hedged item and is recognized in profit or loss.

10. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 "Impairment of assets"

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to Rs, Nil has been made during the year.

11. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

12.General description of various employee''s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company''s expected contribution for FY 2018-19 towards the Gratuity Fund Contribution is Rs, 6.55 crore (PY. Rs, 0.43 crore) . However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave Compensation:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under-

i) Service Award:

Service Award amounting to Rs, 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

ii) Compassionate Gratuity

Compassionate Gratuity amounting to Rs, 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

iii) Employees'' Family Benefit Scheme

Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs, 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs, 12,000/- on rendering service of 20 years or more at the time of death.

iv) Special Benefit to MICA Division employees amounting to Rs, 5,00,000/- (Officer), Rs, 4,00,000/- (Staff) and Rs, 3,00,000/- (Worker) upon retirement

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under:

d) Provident Fund: The Company''s contribution paid/payable during the year to Provident Fund and the liability is recognized on accrual basis. The Company''s Provident Fund Trust is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

e) Superannuation Pension Benefit - During the year, the Company has recognized Rs, 4.55 crore (PY. Rs, 8.04 crore) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ''Defined Contribution Scheme'' as under:

i) The liability for the year 2017-18 has been calculated at the rate of 1.50% of PBT in respect of scheme for retirees prior to 1.1.2007 and @ 4.50% of Basic DA paid during 2017-18 in respect of scheme for retirees after 1.1.2007, as per the defined contribution scheme.

ii) Pending creation of trust for management of fund, the contribution for the current year along with the liability as on 31.3.2017 has been shown as company''s obligation as on

31.3.2018 under ''Defined Contribution Scheme'' and additional contribution @ 6.25% (PY. @ 8.50%) has been added during the year in the present value of obligation being one year closer to settlement.

iii) During the year, total expenses of Rs, 14.49 crore (PY. Rs, 17.12 crore) has been charged to Profit & Loss Account.

13. Disclosure in respect of Indian Accounting standard (Ind AS)-108: "Operating Segments"

Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources based on an

analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:-Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others

Segment Revenue and Expense Details regarding revenue and expenses attributable to each segment must be disclosed

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances etc. Assets relating to corporate and construction are included in unallocated segments. Segment liabilities include liabilities and provisions directly attributable to respective segment.

b) Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c) Joint Venture:-

i) Neelachal Ispat Nigam Ltd

ii) Free Trade Warehousing Pvt. Ltd.

iii) MMTC Pamp India Pvt. Ltd.

iv) MMTC Gitanjali Ltd.

v) Sical Iron Ore Terminal Ltd.

vi) TM Mining Co. Ltd.

d) Government and its related entities

i) Government of India - holds 89.93% equity shares of the Company and has control over the company.

ii) Central Public Sector Enterprises in which Government of India has control.

e) Post-Employment Benefit Plan

i) MMTC Limited CPF Trust

ii) MMTC Limited Gratuity Trust

iii) MMTC Limited Employees'' Defined Contribution Superannuation Trust

14. Balances of some of the Trade Receivable, Other Assets, Trade and Other Payable are subject to confirmation/reconciliation and consequential adjustment, if any. Reconciliations are carried out on on-going basis. Provisions, wherever considered necessary, have been made. However, management does not expect to have any material financial impact of such pending confirmation/ reconciliation.

15 Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of Rs, 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

16 Accounting policies and notes attached form an integral part of the financial statements.

17. The company has made certain changes in the Accounting Policies during the year as under:-

i) Changes in the wording of Accounting Policy No.2.2 "Functional and Presentation Currency" for reporting of financial in crores of Indian rupees (Rs, in crores) (up to two decimals)".

ii) Accounting Policy No. 2.4 (i) (c) (iv) has been added under Revenue Recognition to clarify the revenue recognition when gold procured domestically to bring the same in line with the existing practices followed in such cases.

The above changes have no financial impact on the financials of the company.

18. Amount in the financial statements are presented in Rs, crore (up to two decimals) except for per share data and as otherwise stated. Certain small amounts may not appear in financial statements due to rounding off in Rs, in crore. Previous year''s figures have been regrouped/ rearranged wherever considered necessary.

19. Approval of financial statements

The financial statements were approved by the board of directors and authorized for issue on 29.05.2018


Mar 31, 2017

1. Commitments

Capital Commitments: Estimated amount of contracts including foreign currency contracts net of advances remaining to be executed on capital account and not provided for is Rs, 0.81 million (P.Y. Rs, 7.41 million).

Capital commitment in respect of investment in joint venture Rs, 84.28 million (P.Y. Rs, 65.20 million)

2. General Disclosures

a) Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 13 (B)) as well as other current liabilities (note no.23).

b) The company has taken decision to replace the existing ERP Package due to various changes taken place in

the business model in the recent years and to also meet the latest statutory requirements.

c) Investment in Neelachal Ispat Nigam Ltd (NINL)-Joint Venture company :-

(i) The company alongwith Government of Odisha has set up a 1.1 MT integrated steel plant in Odisha and invested Rs, 3796.85 million (P.Y. Rs, 3796.85 million) (Note 8) towards 49.78% in equity capital in M/s Neelachal Ispat Nigam Ltd (NINL), a joint venture company.

(ii) The company has been extending, from time to time, short term credit facility to NINL up to a limit of Rs, 12750.00 million for its day to day operational activities on continuing basis. In addition, one time loan of Rs, 1300.00 million has been extended for debt repayment. Against this, outstanding under trade receivable (note 9) is Rs, 2309.96 million (P.Y. Rs, 1417.04 million), under Other Assets (advances to related parties) (note 13) is Rs, 9664.89 million (P.Y. Rs, 6566.44 million) and under Loans (note 10) is Rs, 1300.00 million (P.Y. Rs, 1300.00 million) aggregating to Rs, 13274.85 million (P.Y. Rs, 9283.48 million).

(iii) The company has also given corporate guarantees amounting to Rs, 14605.60 million (P.Y. Rs, 14605.60 million) in favour of FIs/Banks/others to secure the loans availed by NINL and issued standing instruction to a bank to credit NINL bank account @ Rs, 25 million every month during the tenor of the loan i.e. 4 years from October, 2014 against which pending commitment is Rs, 475 million as on 31.3.2017(note 36 (v).

(iv) The company has recognized trade related interest of Rs, 720.82 million (P.Y. Rs, 603.95 million) and other interest income of Rs, 154.03 million (P.Y. Rs, 163.14 million) on the credit facilities extended to NINL.

(v) NINL is incurring losses (Net Loss is 28.11% of sales for the F.Y.2016-17) and net asset of NINL as per their financial statements, excluding MMTC dues is Rs, 11523.44 million as on 31.3.2017. Considering the clearance of mining rights of allotted Iron Ore mine to NINL in January 2017 and expected revival of the Steel sector globally, the management has considered its investment as good.

d) The Company has filed a recovery suit of Rs, 314.02 million against M/s AIPL in respect of Mint sale transaction

(P.Y. Rs, 314.02 million) which included overdue interest of Rs, 29.49 million (P.Y. Rs, 29.49 million) which has

been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs, 1671.97 million (P.Y. Rs, 1671.97 million) which is not tenable as per legal opinion and is being contested.

e) Under Price Stabilization Scheme of the Government of India to create Buffer Stock of Pulses, MMTC imported Pulses from July 2015 onwards until 31.03.2017. As per the scheme MMTCs trading margin has been fixed at 1.5% on C&F cost at the time of sale and all expenses related to the import shall be to the account of Govt. The stocks have been stored at various CWC/SWC/Other Godown in various States. Accordingly, the closing stock has been valued at cost as on 31.03.17.

f) A claim for Rs, 18.89 million (P.Y. Rs, 18.89 million) against an associate on account of damaged imported Polyester is pending for which a provision of Rs, 15.28 million (P.Y. Rs, 15.28 million) exists in the accounts after taking into account the EMD and other payables amounting to Rs, 3.61 million (P.Y. Rs, 3.61 million). The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been filed against the Associate.

g) Salary revision of employees is due w.e.f. 1.1.2017. However, DPE is yet to issue guidelines on salary revision and accordingly liability for 1.1.17 to 31.3.17 could not be estimated and hence no provision has been made in the accounts.

h) At Regional Office, Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs, 35.31 million (P.Y. Rs, 36.08 million) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit which was vacated and Indian bank had to make payment to the foreign bank. The matter is still pending in the court. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs, 85.98 million (P.Y. Rs, 85.98 million), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during the year 2014-15.

i) At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs, 37.52 million (P.Y. Rs, 37.52 million) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier.

4.Financial Instruments by Categories

The following tables show the carrying amounts and fair values of financial assets and financial liabilities by

categories. It does not include fair value information for financial assets and financial liabilities not measured

at fair value if the carrying amount is a reasonable approximation of fair value.

5. Financial risk management, objectives and policies

The company''s activities expose it to the following financial risks:

-market risk -credit risk and -liquidity risk.

The company has not arranged funds that have any interest rate risk.

a) Market risk

(i) Foreign Exchange Risk

The company has import and export transactions and hence has foreign exchange risk primarily with respect to the US$. The company has not arranged funds through long term borrowings. The short term foreign currency loans (buyer''s credit) availed from banks are fixed interest rate borrowings. As a result, the company does not have any interest rate risk. The company''s risk management policy is to use hedging instruments to hedge the risk of foreign exchange.

The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company designates the spot element of forward contracts with reference to relevant spot market exchange rate. The difference between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in the spot exchange rate of hedging instrument that relate to the hedged item is deferred in the cash flow hedge reserve and recognized against the related hedged transaction when it occurs. The forward element of forward exchange contract is deferred in cost of hedging reserve and is recognized to the extent of change in forward element when the transaction occurs.

The following tables show the summary of quantitative data about the company''s exposure to foreign currency risk from financial instruments expressed in '':

The company has no exposure in respect of foreign currency receivable/payable since loss/gain is to the account of the Associate supplier/customer except on provision towards litigation settlement where matter is still under dispute. Also the company has taken forward exchange contracts in respect of payables at the risk and cost of the associate.

Sensitivity:

As of March 31, 2017 and March 31, 2016, every 1% increase or decrease of the respective foreign currencies compared to our functional currency would impact our profit before tax by approximately '' NIL and '' NIL, respectively.

(ii) Price Risk

The company''s exposure to equity securities price risk arises from investments held by the company and classified in balance sheet as at fair value through other comprehensive income. Out of the two securities held by the company, one is listed in NSE and the other (ICEX) is not listed.

As of March 31, 2017 and March 31, 2016, every 1% increase or decrease of the respective equity prices would impact other component of equity by approximately '' 1.98 million and '' 1.60 million, respectively. It has no impact on profit or loss.

b) Credit Risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Accordingly, credit risk from trade receivables has been separately evaluated from all other financial assets in the following paragraphs.

Trade Receivables

The company''s has outstanding trade receivables are mostly secured through letter of credit/BG except in respect of JV''s and Govt of India.

Impairment on trade receivables is recognized based on expected credit loss in accordance with provisions of IndAS 109. The company''s historical experience for customers, present economic condition and present performance of the customers, future outlook for the industry etc are taken into account for the purposes of expected credit loss.

Trade receivables are generally considered credit impaired after three years past due (except government dues), unless the amount is considered receivable, when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired and past due for each reporting dates under review are of good credit quality.

With regard to trade receivable on certain transactions, the company has equivalent trade payables to associate suppliers which are payable on realization of trade receivables. Such trade receivables are considered not impaired though past due.

Other financial assets

Credit risk relating to cash and cash equivalents is considered negligible because our counterparties are banks. We consider the credit quality of term deposits with scheduled banks which are subject to the regulatory oversight of the Reserve Bank of India to be good, and we review these banking relationships on an ongoing basis. Credit risk related to employee loans are considered negligible since major loans like house building loans, vehicle loans etc are secured against the property for which loan is granted to the employees. The other employee loans are covered under personal guarantee of concerned employees along with surety bonds of other serving employees. There are no impairment provisions as at each reporting date against these financial assets. We consider all the above financial assets as at the reporting dates to be of good credit quality.

c) Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations and availability of funding through an adequate amount of committed credit facilities to meet obligations when due.

Due to the dynamic nature of underlying businesses, the company maintains flexibility in funding by maintaining availability under committed credit lines.

Short term liquidity requirements consists mainly of sundry creditors, expense payable, employee dues arising during the normal course of business as of each reporting date. The company maintains sufficient balance in cash and cash equivalents to meet short term liquidity requirements.

The company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and committed credit lines.

The table below provides details regarding the contractual maturities of non-derivative financial liabilities. The table has been drawn up based on the undisclosed cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The table includes both principal & interest cash flows.

6. Impact of Hedging Activities

7. Cash Flow Hedge

As at 31st March 2017 there was no outstanding Hedging Instrument on account of the company.

8. Fair Value Hedge

As per the Risk Management Policy, the company enters into forward contracts with commodity exchanges to hedge against price fluctuations in gold and silver inventories. The gain or loss on the hedging instrument is recognized in profit or loss. The hedging gain or loss on the hedged item adjusts the carrying amount of the hedged item and is recognized in profit or loss.

The company did not designate hedge accounting prior to 1st April 2016. Hence the figures as at 31st March 2016 and 1st April 2015 are NIL.

9.. Disclosure in respect of Indian Accounting Standard (Ind AS)-36 "Impairment of assets"

During the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in the value of PPE amounting to Rs. 3.76 million has been made during the year.

10. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

11 General description of various employee''s benefits schemes are as under:

a) Gratuity:

Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC. The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

As per Actuarial Valuation company''s best estimates for FY 2016-17 towards the Gratuity Fund Contribution is '' 4.28 million (including actuarial deficit of '' NIL Millions for 2015-16). However, the company is making contribution to the fund as per the demand made by Life Insurance Corporation of India.

b) Leave:

Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

The liability on this account is recognized on the basis of actuarial valuation.

c) Long Service Benefits: Long Service Benefits payable to the employees are as under-

(i) Service Award:

Service Award amounting to 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(iii) Employees'' Family Benefit Scheme

Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum 12,000/- on rendering service of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to 5,00,000/- (Officer), 4,00,000/- (Staff) and 3,00,000/- (Worker) upon retirement

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under:

e) Pension Scheme - During the year, the Company has recognized '' 80.45 million (P.Y. '' 83.38 million) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

f) Post-Retirement Medical Benefit: Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ''Defined Contribution Scheme'' as under:

a. The liability for the year 2016-17 has been calculated at the rate of 1.50% of PBT for the retirees prior to 1.1.2007 and @ 4.50% of Basic DA in respect of serving employees as per the defined contribution scheme.

b. Pending creation of trust for management of fund, the contribution for the current year along with the liability as on 31.3.2016 has been shown as company''s obligation as on 31.3.2017 under ''Defined Contribution Scheme'' and additional contribution @ 8.50% has been added during the year in the present value of obligation being one year closer to settlement.

c. During the year, total expenses of '' 171.23 million (P.Y. '' 139.78 million) has been charged to Profit & Loss Account.

43. Disclosure in respect of Indian Accounting standard (Ind AS)-108: "Operating Segments"

Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company''s performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented for each business segment. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segments, and are as set out in the significant accounting policies. Business segments of the company are:-Precious Metals, Metals, Minerals, Coal & Hydrocarbon, Agro Products, Fertilizer and Others

b. Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c. Joint Venture:-

i. Neelachal Ispat Nigam Ltd

ii. Free Trade Warehousing Pvt. Ltd.

iii. MMTC Pamp India Pvt. Ltd.

iv. MMTC Gitanjali Ltd.

v. Sical Iron Ore Terminal Ltd.

vi. TM Mining Co. Ltd.

d. Government and its related entities

i. Government of India - holds 89.93% equity shares of the Company and has control over the company.

ii. Central Public Sector Enterprises in which Government of India has control.

e. Post-Employment Benefit Plan

vii. MMTC Limited CPF Trust

viii. MMTC Limited Gratuity Trust

iii. MMTC Limited Employees'' Defined Contribution Superannuation Trust

48. There are no micro, small or medium enterprises to whom the Company owes dues as at 31st March, 2017 to the extent information available with the company.

49. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

50. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of '' 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

12. Accounting policies and notes attached form an integral part of the financial statements.

13. Transition from IGAAP to IND AS

These financial statements, for the year ended March 31st, 2017, are first financial statements prepared by the Company in accordance with Ind AS. For years up to and including the year ended March 31, 2016, the company prepared its financial statements in accordance with IGAAP, including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended).

Accordingly, the company has prepared IND AS compliant financial statements for year ending on March 31st, 2017. In preparing these financial statements, the company has prepared opening IND AS balance sheet as at 1st April, 2015 the company''s date of transition to Ind-AS in accordance with requirement of IND AS 101, "First time Adoption of Indian Accounting Standards". The principal adjustments made by the company in restating its IGAAP financial statements, including the balance sheet as at 1st April, 2015 and the financial statements as at and for the year ended 31 March 2016 are quantified and explained in detail as Appendix. However the basic approach adopted is again summarized hereunder:

i) All assets and liabilities have been classified into financial assets/liabilities and non-financial assets/liabilities.

ii) All non-current financial assets/liabilities at below market rate of interest or zero interest and outstanding as on 1st April, 2015 have been measured at fair value.

iii) In accordance with IND AS 101, the resulting adjustments are considered as arising from events and transactions entered before date of transition and recognized directly in the retained earnings at the date of transition to IND AS.

iv) The estimates as at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates in accordance with IGAAP (after adjustments to reflect any differences in accounting policies).

v) IND AS 101 also allows to first time adopter certain exemptions from the retrospective application of certain requirements under IND AS. Accordingly, the company has availed the following exemptions/mandatory exceptions as per IND AS 101:

a) Deemed Cost for Property, Plant & Equipment and Intangible Assets: The company has availed exemption under para D7AA of appendix D to IND AS 101 which permits a first time adopter to continue with the carrying values for its PPE as at date of transition to IND ASs measured as per previous GAAP.

b) Classification & Fair value measurement of financial assets or financial liabilities at initial recognition: The financial assets and financial liabilities have been classified on the basis of facts existing as at the date of transition to IND AS. In addition, the exemption permits prospective application of requirements of IND AS 109 to transactions entered into on or after date of transition.

c) Impairment of financial assets: The company has availed exemption under para B8D of appendix B which permits the first time adopter to apply the impairment requirement of Ind AS 101 prospectively.

B. Notes to transition from previous GAAP to IndAS Note 1: Fair Value of Equity Investments:

Under the previous GAAP, the investments in equity instruments were classified as long term investments. The long term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, the equity investments (other than those in Joint Ventures, associates and subsidiary) are required to be measured at fair value. The company has classified these equity instruments as at fair value through other comprehensive income. The resulting fair value changes of these investments have been recognized in equity instruments through other comprehensive income reserve as at the date of transaction and subsequently in other comprehensive income for the year ended March 31, 2016. This increased the total equity as at March 31, 2016 by Rs, NIL (April 1, 2015-Rs, NIL) and other comprehensive income for the year ended March 31, 2016 by Rs, NIL

Note 2: Investment Property:

Under Previous GAAP, Investment properties were presented as part of non-current investments and no depreciation was charged on the investment property. Under Ind AS, investment properties are required to be separately presented on the face of the Balance Sheet and depreciation is required to be charged based on the useful life of the property. The resulting additional depreciation on such property has been recognized in Retained Earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March, 2016. This decreased the Retained Earning by Rs, 5.14 million as at March 31, 2016 and decreased by Rs, 4.44 million as at 01st April, 2015.

Note 3: Property, Plant and Equipments

a) During the year ended March 31, 2016, payments relating to one of the PPE expenditure were wrongly classified and included in the statement of profit and loss. The same has been rectified by reversing the expenditure, recognizing PPE and applicable depreciation on the same. As a result, the carrying value of PPE has increased by Rs,

24.10 million and retained earnings has increased by Rs, 3.65 million as at March 31, 2016. The profit for the year ended March 31, 2016 has increased by Rs, 3.65 million

Note 4: Proposed dividend:

Under the previous GAAP, dividend proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements was considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability under provisions. Under IndAS such dividends are recognized when the same is approved by the share holders in the general meeting. Accordingly, the liability for proposed of Rs, 361.09 million as at March 31, 2016 (April 1, 2015-Rs, 300.89 million) included under provisions has been reversed with corresponding adjustments to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 5: Excise Duty:

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under IndAS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is included under other expenses of the statement of profit and loss. This change has resulted in an increase in total revenue and there expenses for the year ended March 31, 2016 by Rs, 1.73 million. There is no impact on the total equity and profit.

Note 6: Remeasurements of Post-Employment Benefit Obligations:

Under Ind AS, re-measurements i.e. actuarial gains or losses are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP these re-measurements were forming part of the profit or loss for the year. As a result of this change the profit for the year ended March 31, 2016 increased by Rs, 8.54 million there is no impact on the total equity as at March 31, 2016.

Note 7: Retained Earnings:

Retained earnings as at April 1, 2015 and as at March 31, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 8: Other Comprehensive Income:

Under Ind AS, all items of income and expense recognized in a period should be included in the profit or loss of the period, unless a standard requires or permits otherwise. Items of income or expense that are not recognized under profit or loss but are shown in the statement of profit and loss as other comprehensive income include remeasurements of defined benefit plans, effective portion of gains and losses on cash flow hedging instruments and fair value gains or losses on equity instruments through other comprehensive income. The concept of other comprehensive income did not exist under previous GAAP.


Mar 31, 2016

The Company has one class of share capital, comprising ordinary shares of Rs,1/- each. Subject to the Company''s Articles of Association and applicable law, the Company''s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

The Company does not have any holding company.

No shareholder other than the promoters is holding more than 5% shares of the company. The shareholding of the promoters i.e. President of India as on 31-03-2016 is 899,268,762 shares (P.Y. 899,268,762 shares) - 89.93%.(P.Y. 89.93%).

(a) Final Dividend @ Rs, 0.30/- (P.Y. Rs, 0.25/-)per Equity Share ofRs, 1/- each amounting to Rs, 300 million (P.Y. Rs, 250 million) during 2015-16 has been proposed.

(b) * Pertained to investment allowance reserve created prior to 1991 in respect of erstwhile MITCO, since merged with MMTC.

a) Leasehold lands, roads and culverts, sewerage, drainage and water supply for staff quarters at Delhi includes those held jointly with State Trading Corporation of India Limited (STC)Rs, 1.32 million (P.Y. Rs, 1.32 million).

b) Residential flats includes 41 shares (P.Y. 41 shares) of Cooperative Group Housing Society of the value of Rs, 0.002 million (PY Rs, 0.002 million). Conveyance of some of the flats of the original value as on 31.03.2016 amounting to Rs, 4.89 million (P.Y. Rs, 4.89 million) is pending to be executed.

c) Cost of Office Building on lands not owned by the Company is Rs, 6.24 million (P.Y. Rs, 6.24 million) and provision for depreciation is Rs, 3.62 million (P.Y. Rs, 3.57 million).

d) Cost of Water Supply on Land not owned by the Company is Rs, 0.66 million (P.Y. Rs, 0.66 million).

e) Cost of residential building, roads & culverts and electrical installations amounting to Rs, 11.63 million (P.Y. Rs, 11.63 million) & accumulated depreciation ofRs, 6.59 million (P.Y. Rs, 6.44 million) constructed on the leasehold land at Para dip which expired on 20.11.2011 Paradip Port Trust has approved its renewal for 15 years. However, final approval of Government is awaited.

f) The company has carried out the assessment of impairment of assets (Railway Wagon Rakes) & provision towards impairment loss in value of assets amounting to Rs, Nil million (P.Y. Rs, 106.87 million) has been made during the year.

1. Asset shown as Trade Investment amounting to Rs, 36.31 million (P.Y. Rs, 36.31 million) represents carrying value of property. The asset has been let out throughout the year, hence categorized as investment property in accordance with para 3.4 of AS-13 issued by ICAI and no depreciation has been charged.

2. The Company has invested Rs, 338.00 Million (P.Y Rs, 338.00 Million) towards 26% equity in Port Project, a Joint Venture of MMTC for the construction and operation of iron ore terminal at Ennore Port. The construction of terminal was completed by November 2010, the port could not be commissioned due to restrictions on mining, transportation and export of iron ore. The proposal for modification of the facility for handling of coal through Kamarajar Port Limited (KPL) (erstwhile known as Ennore Port Limited) in addition to existing facility has been approved by the Authorities. Accordingly, during the year bids were invited by KPL from prospective operators with first right of refusal to SIOTL. The price bid opening has been deferred as one of the bidders, declared not qualified by KPL on technical parameters, has challenged in the court of law. Compensation amount according to the provision of concession agreement will be paid upfront by the successful bidder to project company, in case the project company chooses not to match the H1 Bid. Accordingly, no permanent diminution in the investment has been considered by the management.

3. Against initial investment of 52 million equity shares amounting to Rs, 260 million, in the Indian Commodity Exchange (ICEX) (representing 26% holding of the company in Exchange), a provision ofRs, 241.10 million was created in 2013

14, on account of permanent diminution in the value of investment. During the year 2015-16, the aforesaid amount of provision has been written back by the management of the company considering the following events:

I. The company has divested 20 million equity shares of the exchange at a gain of 100% over its invested cost, during the month of December/January2016.

II. A Right Issue at a 100% premium was brought out by the exchange in Feb/March 2016, that got fully subscribed (MMTC did not participate in right issue).

III. The exchange has chalked out revival plan and submitted the same to the Regulator (SEBI) after due approval from the Board of the exchange.

IV. Post Right Issue, the net worth of the exchange turned positive.

4. In regard to investment ofRs, 30.00 million (P.Y Rs, 30.00 million), during the current year USE has obtained approval from SEBI, CCI & Shareholders for amalgamating USE with Bombay Stock Exchange (BSE) with 01.04.2014 as appointed date. The Hon''ble High Court Bombay has since accorded approval to the scheme of amalgamation on 24.04.2015. Consequently, the company has got 77,922 shares of BSE of face value ofRs, 1 in exchange of 3,00,00,000 shares in USE of face value ofRs, 1 (i.e 1 share of BSE for every 385 shares held in USE).

5. All Non-Current Investments are carried at cost less provision for permanent diminution in value, if any. The company is not having any quoted investments. Aggregate amount of un-quoted investments is Rs, 4608.73 million (P.Y. Rs, 4708.86 million). Aggregate amount of provision for diminution in value of investments is Rs, 47.50 million (P.Y. Rs, 288.60 million).

Out of the above amount due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member is Rs, 0.26 million (P.Y. Rs, 0.05 million).

(i) Includes Rs, 291.10 million (P.Y. Rs, 237.09 million) advanced by the company to Joint Venture Companies M/s Free Trade Warehousing Pvt. Ltd Rs, 48.68 million (P.Y. Rs, 33.32 million), Haldia Free Trade Warehousing Pvt. Ltd. Rs, 218.65 million (P.Y. Rs, 180.00 million) and Integrated Warehousing Kandla Project Development Pvt. Ltd. Rs, 23.77 million (P.Y. Rs, 23.77 million) in the form of Project Development Fund for setting up Free Trade Warehousing Projects in India. Interest accrued on above advances, Rs, 38.65 was shown as "Interest accrued but not due" as on 31-03-2015 has been merged with "Advance to Other Companies - FTWPL" as on 31-03-2016.

(ii) a) Includes Rs, 2097.92 million (P.Y Rs, 2097.92 million) recoverable from various borrowers and National Spot Exchange (NSEL) arising on account of default of payment obligation of NSEL against which full provision ofRs, 2097.92 million (P.Y Rs, 2097.92 million) has already been made during 2013-14. The Company has filed legal suit in Bombay High Court against NSEL and others and hearings are in progress. The Government has also issued final order of merger of NSEL with its parent company, Financial Technologies (FTIL) in Feb, 2016. Against this merger order, FTIL has filed a case against Government. MMTC is also one of the intervening party in the legal case supporting the merger. CBI has also registered the case and investigations are in progress.

b) Included debit balance of Rs, 51.00 million (P.Y. Rs, 51.00 million) which based on the Special Audit report of RO Chennai, has remained un-reconciled against which full provision already exist in the accounts.

As taken, valued and certified by the management.

Inventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 2016. Valuation of closing stock at market price being lower than cost, has resulted in a loss ofRs, 1.14 million (P.Y Rs, 173.80 million) during the year out of which Rs, Nil (P.Y. Rs, 32.66 million) is to the account of backup supplier/handling agents and accordingly, debited to their account.

Stock-in-trade includes the following:

1) 21020 Certified Emission Reductions (CERs) and 21020 Verified Carbon Units (VCUs) and same has been valued atRs, 0.81 million (P.Y. Rs, 0.78 million) as per AS-2, i.e. lower of cost or net realizable value.

2) Nil number of CERs under certification.

3) An amount ofRs, 28.96 million has been spent on account of Depreciation, O&M cost of Emission Reduction equipment. Includes Rs, 1417.04 million (P.Y. Rs, 1478.45 million) receivable from related parties.

Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments Rs, 5.06 million (P.Y. Rs,4.78 million).

Balances with banks includes Rs, 0.59 million (P.Y. Rs, 0.31 million) for unpaid dividend.

"Cash and cash equivalents''" has been changed to "Cash and Bank balances" in accordance with provisions of Accounting Standard-3 issued by The Institute of Chartered Accountants of India.

In respect of coal imported for supply to power utilities on back to back basis, sale in some cases is booked provisionally pending confirmation of quantity/quality from the respective power plants and final reconciliation thereof with CHA/backup supplier. This has no impact on the profitability since the difference, if any, shall be to the account of the supplier/CHA in terms of the agreement.

(ii) CSR Expenditure:

- Rs, 4.05 million on installation of drinking water, creation of toilet set cat Joda/Barbil/Keonjhar/Jajpurdistrictsof Odisha.

- Rs, 0.35 million incurred on installation of hand pumps in Ghosi/Jaitwardih in Uttar Pradesh.

- Rs, 0.10 million for Clean Ganga Mission.

The expenditure has been incurred on voluntary basis as the company was not required to spend on CSR activity during the year 2015-16 as provided under Section 135 of Companies Act, 2013, since, the company did not have average net profit during the three immediately preceding financial years.

(i) Represents profit on sale of 2 crore (10%) equity shares of ICEX of face value ofRs, 5 each at a premium ofRs, 5 each.

(ii) (a) Includes Rs, 33.45 million (P.Y. Rs, 321.77 million) towards liability in respect of an arbitration award against the company on account of claim filed by a foreign supplier against invocation of Performance Bank Guarantee relating to import of urea. The award was challenged by the company in Hon''ble Delhi High Court which was not admitted. The company has since filed Special Leave petition against the said award in the Hon''ble Supreme Court which has been admitted by the Hon''ble Court. However, total liability amounting Rs, 382.21 million towards the claim (? 230.17 million), interest (Rs,134.89 million) and other cost etc. (? 17.15 million) has been made up to 31.03.2016.

(b) Includes Rs, 389.90 million (P.Y Rs, NIL million) credit on account of amount appropriated towards overdue interest on old dues recoverable from FCI out of an amount ofRs, 609.90 million retained by company against export proceeds of wheat- A/c FCI. Rs, 220 million has already been adjusted against other recoverable from FCI during the financial year 2014-15. Whereas FCI has been objecting to such retention, the company decided to appropriate the retained amount towards receivable and interest income.

(iii) - Includes Nil million (P.Y. Rs, 221.35 million) being provision for bad & doubtful debts withdrawn as a results of

recovery of dues from the customer. It also includes Rs, Nil million (P.Y. Rs, 284.53 million) being the provision no longer required in respect of debt which was written off during the 2014-15 & shown as bad debts written off in note 15 (B).

- It also includes Rs, Nil million (P.Y Rs, 145.85 million) being excess provision withdrawn in respect of ''Postretirement Medical Benefit Scheme'' consequent to change of scheme to ''Defined contribution scheme''.

- Also includes Rs, 241.10 million (P.Y. Rs, Nil million) being withdrawal of provision for permanent diminution of investment in ICEX during the year consequent upon sale of 10% stake in ICEX at a premium of 100%.

1 EXTRAORDINARY ITEMS

2. ADDITIONAL INFORMATION TO STATEMENT OF PROFIT AND LOSS:-

3. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

(i) Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs, 1120.67 million (P.Y. Rs, 2039.36 million) and Corporate Guarantee amounting to Rs, Nil million (P.Y. Rs, 404.00 million) in favour of customer have been given towards performance of contract against which backup guarantees amounting to Rs, 1255.78 million (P.Y. Rs, 3764.60 million) have been obtained from associate suppliers.

b) Corporate Guarantees ofRs, 14605.60 million (P.Y. Rs, 14693.70 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) an Associate Company for securing principal and interest in respect of loans to NINL. The company has also issued a comfort letter in respect of a loan of Rs, 1800.00 million given to NINL by a bank against which corporate guarantee amounting to Rs, 900.00 million has been given by the company. The company has also issued standing instruction (SI) to the bank authorizing the bank to debit company''s bank account @ Rs, 25.00 million every month and credit the current account of NINL maintained in the same bank during the tenor of the loan i.e. 4 years from Oct, 2014 availed by NINL. Pending commitment against the said SI is Rs, 750.00 million as on 31.3.2016.

c) The company entered into a purchase contract with a foreign supplier for import of coking coal for onward sale to NINL (an Associate company) in the year 2008-09. Due to non-performance of the contract, the supplier referred the matter for arbitration. An award was decided against MMTC for an amount of Rs, 5216.80 million (USD 78.72 million @ Rs, 66.27 as on 31.03.2016) and interest/cost thereon up to 31.03.2016 amounting to Rs, 3304.55 million. The company challenged the award before Honble Delhi High Court but that was confirmed by the court. Against this decision of the court, the company filed an appeal before Honble Division Bench of Delhi High Court that has been admitted by the Hon,ble Division Bench of Delhi High Court. Next date of hearing is 18.07.2016.

Pending final out-come of the legal proceedings, the Management has decided not to make provision for the demand amounting to approx. Rs, 8520.99 million in its books of accounts as on 31.03.2016, since as per the legal opinion of senior advocate, the company has a strong case for rejection of the supplier''s claim. Further, as per the legal opinion taken by the company, the liability, if any on account of this claim is to be borne by NINL exclusively. The company has once again reiterated, in its communication to NINL, the legal position on bearing of liability, if any arising out of the referred dispute.

d) Claims against the Company not acknowledged as debts Rs, 4614.32 million (P.Y. Rs, 3439.48 million).

e) Letters of Credit opened by the Company remaining outstanding Rs, 1869.19 million (P.Y. Rs, 235.77 million).

f) Sales Tax Demand ofRs, 2342.94 million (P.Y. Rs, 2248.73 million) in dispute against which Rs, 181.17 million (P.Y. Rs, 183.53 million) has been deposited and Rs, 0.67 million (P.Y. Rs, 0.67 million) covered by bank guarantees.

g) Income Tax demand of Rs, 613.02 million (P.Y. Rs, 701.79 million) in dispute against which Rs, 455.56 million (P.Y. Rs, 373.70 million) has been deposited.

h) Service Tax demand in respect of business auxiliary service amounting to Rs, 942.72 million (P.Y. Rs, 849.45million).

i) TDS demand raised by department amounting Rs, 7.59 million (P.Y. Rs, Nil million).

j) Aback to back supplier of steam coal has claimed an amount ofRs, 504.30 million (P.Y. Rs, 504.30 million) towards increased railway freight, belt sampling rejection, rake rejection and interest for delayed payment in relation to Coal Supply on back to back basis to a customer during 2011-12 to 2012-13 which has been disputed by the customer.

k) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is 6842.98 million as on 31.03.2016 (P.Y. Rs, 9372.80 million), out of which, demand against show cause notices for Rs, 58.28 million (P.Y. Rs, 47.41 million) received by the company at Delhi Regional Office against which appeal has been filed by the company.

l) Custom department have raised demand ofRs, 1902.44 million (P.Y. Rs, 351.21 million) at various RO''son account of differential custom duty/interest/penalty etc. on import of Steam Coal supplied by the company to Power utilities through associate suppliers on back to back terms on fixed margin basis. Also in case of RO Kolkata and Mumbai Rs, 174.82 million (P.Y. Rs, 174.82 million) and Rs, 215.61 million (P.Y. Rs, 215.61 million) shown as firm liability respectively in their books of accounts. The liability, if any, on account of custom duty shall be to the account of the backup supplier.

m) Excise duty demand/penalty ofRs, 193.17 million (P.Y. Rs, 193.17 million) for which company has already filed an appeal before the CESTAT.

n) Asstt. Provident Fund Commissioner at SRO Bellary raised a PF Demand ofRs, 22.36 million (P.Y. Rs, 22.36 million). The company has disputed the claim based on grounds of appeal as suggested by a legal opinion.

o) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

p) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

(ii) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs, 7.41 million (P.Y.Rs, Nil million).

GENERAL DISCLOSURES:-

4. Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 7.6) as well as other current liabilities (note no. 5.3).

5. a) The company along with Government of Odisha has set up a 1.1 MT integrated steel plant in Odisha and invested

Rs, 3796.85 million (P.Y. Rs, 3796.85 million) (Note 6.2) towards 49.78% in equity capital in M/s Neelachal Ispat Nigam Ltd (NINL), an associate company.

b) The company has been extending, from time to time, short-term credit facility to NINL up to a limit ofRs, 8000 million for its day to day operational activities on continuing basis. In addition one time loan ofRs, 1300 million has been extended for debt repayment. Against this, outstanding under trade receivable (note7.3) is Rs, 1417.04 million (P.Y. Rs, 1478.45 million) and under short-term loans & advances (note 7.5) is Rs, 7866.44 million (P.Y. Rs, 7191.48 million) aggregating to Rs, 9283.48 million (P.Y. Rs, 8669.93 million).

c) The company has also given corporate guarantees amounting to Rs, 14605.60 million (P.Y. Rs,14693.70 million) in favour of FIs/Banks/others to secure the loans availed by NINL and issued standing instruction to a bank to credit NINL bank account @ Rs, 25 million every month during the tenor of the loan i.e. 4 years from October, 2014 against which pending commitment is Rs, 750 million as on 31.3.2016(note 19 (i) (b)).

d) NINL is incurring losses (Net Loss is 30.67% of sales for the F.Y.2015-16) and net asset of NINL as per their financial statements, excluding MMTC dues is Rs, 11315.64 million as on 31.3.2016. Considering the expected revival of the Steel sector globally and expected clearance of mining rights of allotted Iron Ore mine to NINL, the management has considered its investment as good.

6. In respect of GR-1 forms pertaining to period prior to 1993-94, outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty forRs, 19.31 million (P.Y. Rs, 19.01 million) which are being contested. Against this, an amount of Rs, 0.30 million (P.Y. Rs, Nil million) has been deposited and bank guarantee ofRs, 10.30 million (P.Y. Rs, 10.30 million) furnished.

7. The company has taken decision to replace the existing ERP Package due to various changes taken place in the business model in the recent years and to also meet the latest statutory requirements.

8. The employee''s benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:-

i. Leave Encashment - Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed during service leaving a minimum balance of 15 days twice in a year.

ii. Post Retirement Medical Benefit (PRMB) - Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under ‘Defined Contribution Scheme''.

iii. Gratuity-Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

iv. Long Service Benefits: Long Service Benefits payable to the employees are as under:-

(a) Service Award amounting to Rs, 3,500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs, 50,000/- is payable in lump-sum to the dependants of the employee on death while in service.

(c) Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last

drawn subject to a maximum ofRs, 12,000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs, 12,000/- on rendering service of 20 years or more at the time of death.

(d) Special Benefit to MICA Division employees amounting to Rs, 5,00,000/- (Officer), Rs, 4,00,000/- (Staff) and Rs, 3,00,000/- (Worker) upon retirement.

v. Provident Fund - The Company’s contribution paid/payable during the year to Provident Fund is recognized in the Statement of Profit & Loss. The Company''s Provident Fund Trust is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

vi. Pension Scheme - During the year, the Company has recognized Rs, 83.38 million (P.Y. Rs, 78.84 million) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

vii. Other disclosures as required under AS - 15(Revised) on ''Employee Benefits'' in respect of defined benefit obligation are:

(e) In case of gratuity, the Company has taken policy from LIC to discharge its obligation and expenses are recognized based on Actuarial Valuation done by LIC.

viii. Post-Retirement Medical Benefit Scheme:

a. The liability for the year 2015-16 has been calculated at the rate of 1.50% of PBT for the retirees prior to 1.1.2007 and @ 4.50% of Basic DA in respect of serving employees as per the defined contribution scheme.

b. Pending creation of trust for management of fund, the contribution for the current year along with the liability as on 31.3.2015 has been shown as company''s obligation as on 31.3.2016 under ''Defined Contribution Scheme'' and additional contribution @ 8.50% has been added during the year in the present value of obligation being one year closer to settlement.

c. During the year, total expenses ofRs, 139.78 million (P.Y. Rs, 149.49 million) has been charged to Profit & Loss Account.

9 (A). In terms ofAS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India.

Details are placed at Annexure ''A''.

10. Related Party Disclosures underAS-18 (As identified & certified by the Management)

b) Subsidiary MMTC Transnational Pte. Ltd., Singapore

c) Associate

Neelachal Ispat Nigam Ltd.

d) Joint Ventures

Free Trade Warehousing Pvt. Ltd.

Haldia Free Trade Warehousing Pvt. Ltd. (Subsidiary of Free Trade Warehousing Pvt. Ltd.)

Integrated Warehousing Kandla Project Development Pvt. Ltd. (Subsidiary of Free Trade Warehousing Pvt. Ltd.) MMTC Pamp India Pvt. Ltd.

MMTC Gitanjali Ltd.

Indian Commodity Exchange Ltd.

Sical Iron Ore Terminal Ltd.

TM Mining Company Limited Blue Water Iron Ore Terminal Pvt. Ltd.

The PRP shown above pertain to the Financial Year 2014-15 paid during F.Y.2015-16 on ad-hoc basis.

Remuneration paid to Mr. Ashwani Sondhi is disclosed for the whole year but he assumed the charge of Director (Marketing) on 06.01.2016.


Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

(i) Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs.2039.36 million (P.Y. Rs.3654.78 million) and Corporate Guarantee amounting to Rs.404.00 million (P.Y. Rs.3361.56 million) in favour of customer have been given towards performance of contract against which backup guarantees amounting to Rs.3764.60 million (P.Y. Rs.7152.38 million) have been obtained from associate suppliers.

b) Corporate Guarantees of Rs.14693.70 million (P.Y Rs.13793.70 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) an Associate Company for securing principal and interest in respect of loans to NINL. The company has also issued a comfort letter during the year in respect of a loan of Rs.1800.00 million given to NINL by a bank against which corporate guarantee amounting to Rs.900.00 million has been given by the company. The company has also issued standing instruction to a bank during the year authorizing the bank to debit company's bank account @ Rs.25.00 million every month and credit the current account of NINL maintained in the same bank during the tenor of the loan i.e. 4 years from Oct, 2014 availed by NINL.

c) A party has claimed an amount of Rs.4920.39 million ($ 78.72 million translated @ Rs.62.5050 being the closing rate of exchange as on 31.03.2015) (PY Rs.4716.93 million) towards non lifting of part quantity of coking coal in respect of supplies to M/s NINL, relating to delivery period 2008-09. The majority arbitration award was decided against MMTC which has been challenged before Hon'ble High Court of Delhi. The interest and cost of arbitration as per arbitration award amounts to Rs.2378.41 million as on 31.3.2015.

There is Agreement between MMTC and NINL as per which MMTC to supply raw material to NINL including imported coking coal on their behalf. Accordingly the matter regarding the dispute raised by M/s Anglo Coal towards the supply of coking coal to NINL and subsequent legal recourse taken by MMTC has been informed to NINL by MMTC from time to time.

d) Claims against the Company not acknowledged as debts Rs.3439.48 million (P.Y. Rs.3652.51 million).

e) Letters of Credit opened by the Company remaining outstandingRs.235.77 million (P.Y. Rs.6642.69 million).

f) Sales Tax Demand of Rs.2248.73 million (P.Y. Rs.2445.44 million) in dispute against which Rs.183.53 million (P.Y. Rs.192.94 million) has been deposited and Rs.0.67 million (P.Y. Rs.0.74 million) covered by bank guarantees.

g) Service Taxdemand in respect of business auxiliary service amounting toRs.849.45 million (P.Y Rs.809.70 million).

h) A backup supplier of steam coal has claimed an amount of Rs.504.30 million (P.Y. Rs.504.30 million) towards increased railway freight, belt sampling rejection, rake rejection and interest for delayed payment in relation to Coal Supply on back to back basis to a customer during 2011 -12 to 2012-13 which has been disputed by the customer.

i) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs.9372.80 million as on 31.03.2015 (P.Y. Rs.7615.00 million), out of which, show cause notices for Rs.47.41 million received by the company at Delhi Regional Office during 2013-14 which is taken up with custom department.

j) Custom department have raised demand of Rs.351.21 million (P.Y. Rs.620.17 million) at various RO'son account of differential custom duty/interest/penalty etc. on import of Steam Coal supplied by the company to Power utilities through associate suppliers on back to back terms on fixed margin basis. Also in case of RO Kolkata and Mumbai Rs.174.82 million (P.Y. Rs.Nil million) and Rs.215.61 million (P.Y. Rs.Nil million) shown as firm liability respectively in their books of accounts. The liability, if any, on account of custom duty shall be to the account of the backup supplier.

k) Excise duty demand/penalty of Rs.193.17 million (P.Y. Rs.96.59 million) for which company has already filed an appeal before the CESTAT.

I) Demand of custom duty/penalty etc. of Rs.256.99 million (P.Y. Rs.256.99 million) against import of RBD Palm Oil under target plus license, appeal in respect is pending before CESTAT.

m) Asstt. Provident Fund Commissioner at SRO Bellary raised a PF Demand of Rs.22.36 million (P.Y. Rs.Nil million). The company is disputing the claim based on grounds of appeal as suggested by a legal opinion.

n) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt, of India's account and hence the same would be recoverable from the Govt, of India.

o) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

(ii) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil million (P.Y Rs.9.75 million).

21. The company has been extending, from time to time, unsecured short term loan facilities to Neelachal Ispat Nigam Limited (NINL) an Associate Company up to a limit of Rs. 7500.00 million together with one time loan ofRs.1300.00 million for its day to day operational activities on continuing basis. Against this limit, outstanding balance of Rs.1478.45 million (P.Y. Rs. 3494.68 million) has been shown under Note No. 7.3 'Trade Receivables' and Rs.7191.48 million (P.Y. f 2995.03 million) under Note No. 7.5 'Short Term Loans & Advances'. In addition, the company has also given corporate guarantees etc. as disclosed under 'Contingent Liabilities' at Note No. 19 (i) (b).

2. In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 19.01 million (P.Y. Rs. 19.81 million) which are being contested. Against this, an amount of' Nil million (P.Y. Rs. 0.30 million) has been deposited and bank guarantee ofRs.10.30 million (P.Y. Rs. 10.30 million)furnished.

3. The company has taken decision to replace the existing ERP Package due to various changes taken place in the business model in the recent years and to also meet the latest statutory requirements.

4. The employee's benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:-

i. Leave Encashment- Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

ii. Post Retirement Medical Benefit (PRMB) -Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment under' Defined Contribution Scheme'.

iii. Gratuity - Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

iv. Long Service Benefits: Long Service Benefits payable to the employees are as under:-

(a) Service Award amounting to Rs.2500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs. 50,000/- is payable in lump-sum to the dependants of the employee due to death in service.

(c) Payments under Employees' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs.12000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DAIast drawn subject to maximum Rs.12000/- on rendering service of 20 years or more at the time of death.

v. Provident Fund - The Company's contribution paid/payable during the year to Provident Fund is recognized in the Statement of Profit & Loss. The Company's Provident Fund Trust is exempted under Section-17 of Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

vi. Pension Scheme - During the year, the Company has recognized Rs.78.84 million (P.Y. Rs.78.17 million) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

vii. Other disclosures as required under AS-15 (Revised) on 'Employee Benefits' in respect of defined benefit obligation are:

(e) In case of gratuity, the Company has taken policy from LIC to discharge its obligation and expenses are recognized based on Actuarial Valuation done by LIC.

viii. During the year company has implemented certain changes in the Post Retirement Medical Benefit Scheme making it a "Defined Contribution Scheme" which is effective from 1.4.2013. Accordingly, the following accounting has been done:

a. As per the decision of management, the company's liability as on 1.4.2013 in respect of past service has been fixed at Rs. 575.78 million for open group (i.e. serving employees and retirees on or after 1.1.2007) and Rs.574.57 million in respect of retirees prior to 1.1.2007 as against the total provision of Rs.1286.20 million existed in the books as on 1.4.2013.

b. The liability for the year 2013-14 has been re-calculated at the rate of 1.50% of PBT for the retirees prior to 1.1.2007 and @ 4.50% of Basic DAin respect of serving employees amounting to total Rs. 136.14 million including interest cost of Rs.97.78 million as against total expense of Rs. 146.14 million charged to Profit & Loss Account during 2013-14 on the basis of actuarial valuation.

c. Consequently, the excess liability existing in the books as on 1.4.2014 amounting to Rs. 145.85 million has been withdrawn during the year 2014-15 in respect of (a) and (b) above.

d. Pending creation of trust for management of fund, the contribution for the current year along with the liability as on 31.3.2014 has been shown as company's obligation as on 31.3.2015 under 'Defined Contribution Scheme' and accordingly further contribution at discounting rate of 8.50% has been added during the year in the present value of obligation being one year closer to settlement.

e. During the year, total expenses of Rs. 149.49 million (P.Y. Rs. 146.14 million) has been charged to Profit & Loss Account.

5. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure'A.

6. As required by Accounting Standard(AS) 28 "Impairment of Assets" notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets (Railway Wagon Rakes) & provision towards impairment loss in value of assets amounting to Rs. 106.87 million (P.Y. Rs.10.88 million) has been made during the year.

7. Income tax of f 571.07 million (P.Y. Rs. 931.62 million) under the head Short Term Loans and Advances consists of Rs. 391.52 million (P.Y. Rs. 366.63 million) paid to Income Tax Department against the disputed demands/tax liability for various assessment years (up to F.Y. 2013-14) and advance tax/TDS of Rs.179.55 million (PY Rs.564.99 million) towards income tax liability for financial year 2014-15. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

8. The Company has filed a recovery suit of Rs. 314.02 million against M/s AIPL in respect of Mint sale transaction (P.Y. Rs. 314.02 million) which included overdue interest of Rs. 29.49 million (P.Y. Rs. 29.49 million) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of f 1671.97 million (P.Y. Rs. 1671.97 million) which is not tenable as per legal opinion and is being contested.

9. The company had imported pulses on the directives of the Govt, of India during the year 2007-08 to 2010-11. The Government has allowed reimbursement of losses up to 15% of landed cost and trading margin @ 1.2% of CIF value. An amount of Rs. 192.90 million (P.Y. Rs. 165.53 million) including Rs.27.40 million deducted towards interest on excess payment by GOI during 2008-09, on account of claim lodged during 2011 -12 which is within 15% of landed cost, is yet to be received. The scheme was discontinued w.e.f. 2011-12. MOC has communicated that in the meeting of group of officers held under the Chairmanship of Secretary (Coordination) on 16th Dec.2014, it was decided to recommend reimbursement of losses on actual basis for all imports undertaken by PSUs under the scheme which closed on 31.03.2011 and that Department of Consumer Affairs will seek approval of CCEA for the same.

10. The Company has incurred an amount of Rs. 78.35 million (P.Y. Rs. 65.43 million) on development of Gomia Coal Block allotted to the company in the year 2006 which was shown under Capital Work-in-Progress. Consequent upon cancellation of coal block by Govt, of India, the amount shown under Capital Work-in-Progress has been charged off to revenue.

11. A claim for Rs.18.89 million (P.Y Rs.18.89 million) against an associate on account of damaged imported Polyester is pending for which a provision of f 15.28 million (P.Y. Rs. 15.28 million) exists in the accounts after taking into account the EMD and other payables amounting to RS.3.61 million (P.Y. Rs. 3.61 million). The company has requested customs for abandonment which is pending for adjudication. Acriminal & civil suit has been filed against the Associate. The associate has also submitted a proposal for consideration of Dispute Settlement Committee.

12. Particulars in respect of Loans and Advances in the nature of loans as required by Clause 32 of the Listing Agreement:

13. At Regional Office, Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs.34.03 million (P.Y. Rs. 32.63 million) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit with undertaking to pay interest from due date of payment. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs. 85.98 million (P.Y. Rs. 85.98 million), already paid for and after adjustment of EMD & payables provision for the balance amount has been made during theyear2014-15.

14. At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs. 37.52 million (P.Y. Rs.37.52 million) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier.

15. The company has changed following Accounting Policies during the year:

i. Accounting Policy No. 2.6 related to depreciation based on provisions of schedule II of Companies Act, 2013. Due to this, the profit of the company has been increased by Rs. 9.40 million during the year.

ii. Accounting Policy 2.10 (ii) relating to Employee Benefits, consequent upon change in Post Retirement Medical Benefit Scheme from Defined Benefit Scheme to Defined Contribution Scheme. Due to this, the profit of the company has been increased by Rs. 145.85 million during the year.

16. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31a March, 2015.

17. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

18. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

19. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of Rs.2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

20. Figures for the previous year have been regrouped /re-cast wherever considered necessary.

21. Accounting policies and notes attached form an integral part of the financial statements.


Mar 31, 2014

1.1. TREATEMENT OF EXPENDITURE DURING PROJECT IMPLEMENTATION /CONSTRUCTION PERIOD

Expenditure during construction period is included under Pre-operative expenses and the same is being allocated to the respective fixed assets on the completion of erection/installation.

1.2. OPERATING LEASES

Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the income statement on a straight line basis over the period of lease.

Contingent rents are recognized as an expense in the income statement in the financial year in which termination takes place. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the financial year in which termination takes place.

2.1. The financial statements are reported in Indian Rupee and all values are rounded to the nearest million unless otherwise stated.

3. SHAREHOLDERS'' FUND

During 2010-11, 50,000,000 shares of the company of Rs. 10/- each were divided into 500,000,000 shares of Rs. 1/- each and bonus shares were issued in the ratio of 1:1 by capitalizing a sum of Rs. 500 million from general reserve.

The Company has one class of share capital, comprising ordinary shares of Rs. 1/- each. Subject to the Company''s Articles of Association and applicable law, the Company''s ordinary shares confer on the holder the right to receive notice of and vote at general meetings of the Company, the right to receive any surplus assets on a winding-up of the Company, and an entitlement to receive any dividend declared on ordinary shares.

The Company does not have any holding company. Hence no share is held by its holding company or its subsidiaries or associates.

No shareholder other than the promoters is holding more than 5% shares of the company. The shareholding of the promoters i.e. President of India as on 31-03-2014 is 900,000,000 shares (P.Y. 993,312,000 shares)

4. Current Liabilities

4.1 SHORT TERM BORROWINGS

The loans have not been guaranteed by any of the director or others.

The loans have been taken from Banks under Cash Credit/Packing Credit Accounts/Others and are repayable within one year.

The company has not defaulted in repayment of any loan and interest thereon.

4.2 TRADE PAYABLE

Sundry Creditors include Rs. 173.66 million (P.Y. Rs. 2858.08 million) being notional value of 63 Kgs. (P.Y. 1017 Kgs.) of gold taken on loan from foreign suppliers and issued to the Customers of the Company on loan basis.

There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2014.

4.3 OTHER CURRENT LIABILITIES

(i) Includes Rs. 54.65 million (P.Y. Rs. 54.24 million) towards MMTC''s share in the expenditure incurred by JV company consequent to decision of promoters to wind up the project due to delay in receipt of environment clearance.

5 NON CURRENT ASSETS

5.1 FIXED ASSETS

5.1.1 Tangible Assets

(a) Cost of office land/building/flats/culverts, sewerage and drainage in some of the offices have been accounted for provisionally pending receipt of final bills or under construction/execution of lease deed.

(b) Leasehold lands, roads and culverts, sewerage, drainage and water supply for staff quarters at Delhi includes those held jointly with State Trading Corporation of India Limited (STC).

(c) Residential flats includes 41 shares (P.Y. 41 shares) of Cooperative Group Housing Society of the value of Rs. 0.002 million (PY Rs. 0.002 million). Conveyance of some of the flats of the original value as on 31.03.2014 amounting to Rs. 4.89 million (P.Y. Rs. 4.89 million) is pending to be executed.

(c) Cost of Office Building on lands not owned by the Company is Rs. 6.24 million (P.Y. Rs. 6.24 million) and provision for depreciation is Rs. 3.45 million (P.Y. Rs. 3.32 million)

(d) Cost of Water Supply on Land not owned by the Company is Rs. 0.66 million (P.Y. Rs. 0.66 million).

(e) Cost of residential building, roads & culverts and electrical installations amounting to Rs. 11.63 million (P.Y. Rs. 11.63 million) & accumulated depreciation of Rs. 6.30 million (P.Y. Rs. 5.84 million) constructed on the leasehold land at Paradip which expired on 20.11.2011 Paradip Port Trust has approved its renewal for 15 years. However, final approval of Government is awaited.

(f) * Includes Rs. 1.04 million and 0.98 million on account of accumulated depreciation in respect of Plant & Machinery transferred by RO Ahmedabad to DRO and Mumbai respectively. Further an amount of Rs. 0.19 million accumulated depreciation upto 31.03.2013 transferred from Intangible Assets.

(g) The company has carried out the assessment of impairment of assets & provision towards impairment loss in value of assets amounting to Rs. 10.88 million (P.Y. Rs. NIL million) has been made during the year.

(ii) The Company has invested Rs. 338.00 Million (P.Y Rs. 338.00 Million) towards 26% equity in SICAL Iron ore Terminal Limited (SIOTL), a Joint Venture of MMTC for the construction and operation of iron ore terminal at Ennore Port .While the construction of terminal has been completed by November 2010, due to restrictions on mining, transportation and export of iron ore and proposal for modification and conversion of the facility for handling of coal through Kamarajar Port Limited (KPL) (erstwhile known as Ennore Port Limited) is under consideration of Government and upon receipt of its approval, necessary modification for Coal handling would be completed within 12 months in stages and operations can commence thereafter.

(iii) Against investment of Rs. 260 million (P.Y. Rs. 260 million) in Indian Commodity Exchange Limited towards 26% equity, a provision of Rs. 241.10 million (P.Y. Rs. NIL million) towards permanent diminution in value of investment has been made during the year 2013-14 due to erosion in net worth of ICEX by 92.73%.

Out of the above amount due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member is Rs. 0.19 million ( P.Y. Rs. 0.70 million).

6.1 INVENTORIES

As taken, valued and certified by the management.

Inventories including goods in transit are valued at lower of the cost or realizable value as on 31st March 2014. Valuation of closing stock at market price being lower than cost, has resulted in a loss of Rs. 76.53 million (P.Y Rs. 7.39 million) during the year.

6.2 CASH AND BANK BALANCES

Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments Rs. 4.76 million (P.Y. Rs. 3.00 million).

Balances with banks includes Rs. 0.13 million (P.Y. Rs. 0.07 million) for unpaid dividend.

"Cash and cash equivalents''" has been changed to "Cash and Bank balances" in accordance with provisions of Accounting Standard-3 issued by The Institute of Chartered Accountants of India.

7 EXTRAORDINARY ITEMS

Extraordinary items represent:

i. Consequent upon receipt of final report of special audit conducted by a firm of Chartered Accountants provision of Rs. NIL million ( P Y Rs. 155.44 million) made in the books of accounts against amount recoverable from debtors pertaining to previous years arising on account of certain acts of commission and omission at Regional Office, Chennai relating to Bullion transactions. The credit balance of Rs. 68.40 million (P.Y. Rs. 13.40 million) and debit balance of Rs. 51.00 million(P.Y. Rs. 48.02 million) is yet to be reconciled but full provision against the debit balance has been made. The Company has also filed a complaint with CBI who has since registered two separate FIRs and started detailed investigations. Also Directorate of Enforcement has registered an offence under Prevention of Money Laundering Act, 2002 against two ex-officials and two debtors. ii. Based upon the findings of the Special Audit conducted by KPMG a provision of Rs. NIL million (P.Y. Rs. 2288.20 million) made in the books of accounts against amount recoverable from debtors pertaining to previous years arising on account of certain acts of commission and omission at Regional Office, Hyderabad relating to Bullion transactions. The Company has also filed a complaint with CBI who has since registered FIR and started detailed investigations. iii. The Company has made provision of Rs. 2104.42 million (P.Y Rs. NIL) in the books of accounts against total amount of Rs. 2106.38 million recoverable as on 31.03.2014 from various borrowers and National Spot Exchange (NSEL) arising on account of default in payment obligation of NSEL. An amount of Rs. 1.96 Million has subsequently been realized upto 15th May, 2014. The Company has filed legal suit in Mumbai High Court against NSEL and others and criminal complaint in EOW, Delhi Police which has been transferred to CBI Mumbai.

8. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

(i) Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs. 3654.78 million (P.Y. Rs. 4448.26 million) and Corporate Guarantee amounting to Rs. 3361.56 million (P.Y. Rs. 2017.15 million) in favour of customer have been given towards performance of contract against which backup guarantees amounting to Rs. 7152.38 million have been obtained from associate suppliers.

b) Corporate Guarantees of Rs. 13793.70 million (P.Y. Rs. 14409.10 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL), steel plant jointly setup by the Company for securing principal and interest in respect of loans to NINL.

c) Claims against the Company not acknowledged as debts Rs.. 3652.51 million (P.Y. Rs. 2274.05 million).

d) Letters of Credit opened by the Company remaining outstanding Rs. 6642.69 million (P.Y. Rs. 5606.86 million).

e) Sales Tax Demand of Rs. 2445.44 million (P.Y. Rs. 988.89 million) in dispute against which Rs. 192.94 million (P.Y. Rs. 115.96 million) has been deposited and Rs. 0.74 million (P.Y. Rs. 6.74 million) covered by bank guarantees.

f) Service Tax demand in respect of business auxiliary service amounting to Rs. 809.70 million (P.Y. Rs. 486.48 million).

g) A backup supplier of steam coal has claimed an amount of Rs. 504.30 million (P.Y. Rs. NIL million) towards increased railway freight, belt sampling rejection, rake rejection and interest for delayed payment in relation to Coal Supply on back to back basis to a customer during 2011-12 to 2012-13 which has been disputed by the customer.

h) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs. 7615.00 million as on 31.03.2014 (PY Rs. 1697.08 million).

i) A party has claimed an amount of Rs. 4716.93 million ($ 78.72 million translated @ Rs. 59.92 being the closing rate of exchange as on 31.03.2014) (PY Rs. 4273.71 million) along with interest @ 12% p.a. w.e.f. 30th September 2009, towards non lifting of part quantity of coking coal in respect of supplies to M/s NINL on back to back terms, relating to delivery period 2008-09. MMTC also lodged counter claim for non-supply of coking coal for the year 2009-10. The matter was under arbitration, the proceedings of which have been completed. The award has since been received on 21st May, 2014. Two of the three arbitrators have given majority award against the company and the third arbitrator has given minority award in favour of the company. The award is being legally examined and based on the legal advice further action for challenging the same in Delhi High Court shall be taken within the stipulated period. The liability, if any, on this account shall be to the account of NINL.

j) Custom department have raised demand of Rs. 620.17 million (P.Y. Rs. 1850.13 million) at various RO''s on account of differential custom duty/interest/penalty etc. on import of Steam Coal supplied by the company to Power utilities through associate suppliers on back to back terms on fixed margin basis. The liability if any on account of custom duty shall be to the account of the backup supplier.

k) Excise duty demand of Rs. 96.59 million (P.Y. Rs. NIL million) for which company has already represented before Excise Department.

l) Demand of custom duty/penalty etc. of Rs. 256.99 million (P.Y. Rs. 241.12 million) in respect of import of RBD Palm Oil against target plus license. Firm liability in respect of the same has been withdrawn during the current year based on the order of CESTAT staying recovery of the said demand and waiving the pre-deposit by virtue of prima facie case in favour of the company.

m) In some of the cases, amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

n) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

(ii) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 9.75 million (P.Y. Rs. 2.82 million).

9. Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 7.6) as well as other current liabilities ( note no. 5.3) .

10. In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 19.81 million (P.Y. Rs. 19.81 million) which are being contested. Against this, an amount of Rs. 0.30 million (P.Y. Rs. 0.30 million) has been deposited and bank guarantee of Rs. 10.30 million (P.Y. Rs. 10.30 million) furnished.

11. The company has taken decision to replace the existing ERP Package due to various changes taken place in the business model in the recent years and to also meet the latest statutory requirements.

12. The employee''s benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:- i. Leave Encashment – Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

ii. Post Retirement Medical Benefit (PRMB) – Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment subject to a ceiling fixed by the Company. The DPE guidelines provides for creation of separate corpus for employees retired prior to 01.01.2007 and those retiring after 01.01.2007. The Company is having as existing Post Retirement Medical Scheme. The Company has been providing liabilities based on Actuarial Valuation as per the scheme.

During the current year Company has taken decision to create a corpus and its management through a trust which will be implemented from 2014-15 and accordingly notified a revised scheme for employees retired prior to 01.01.2007. After creation of trust and corpus, contribution to the corpus will be regulated in accordance with the DPE guidelines from 2014-15.

iii. Gratuity - Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

iv. Long Service Benefits : Long Service Benefits payable to the employees are as under:- (a) Service Award amounting to Rs. 2500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs. 50,000/- is payable in lump-sum to the dependants of the employee due death in service.

(c) Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs. 12000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs. 12000/- on rendering service of 20 years or more at the time of death.

v. Provident Fund – The Company''s contribution paid/payable during the year to Provident Fund is recognized in the Statement of Profit & Loss. The Company''s Provident Fund Trust is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis-à-vis statutory rate. The company does not anticipate any further obligations in the near foreseeable future having regard to the assets of the funds and return on investment.

vi. Pension Scheme – During the year, the Company has recognized Rs. 78.17 million (P.Y. Rs. 62.77 million) towards Defined Contribution Superannuation Pension Scheme in the Statement of Profit & Loss.

(f) In case of gratuity, the Company has taken policy from LIC to discharge its obligation and expenses are recognized based on Actuarial Valuation done by LIC.

(g) Present value of obligation in respect of Post Retirement Medical Benefit amounted to Rs. 1368.32 million (P.Y. Rs. 1286.21 million) as on 31.03.2014 as per Actuarial Valuation and accordingly liability has been created in terms of AS-15. The Company has also obtained second Actuarial Valuation of present value of obligation as on 31.03.2013 for the purpose of allocation of corpus between employees retired prior to 01.01.2007 and retiring after 01.01.2007. The effect of change in present value of obligation as on 31.03.2013 from Rs. 1286.21 million to Rs. 1150.31 million as reflected in the second actuarial valuation has been duly considered under ''Actuarial gain and losses in the actuarial valuation done as at 31.03.2014 and accounted for accordingly.

13. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure ''A''.

14. Related Party Disclosures under AS-18 (As identified & certified by the Management)

A. Name of the related parties and description of relationship:

a) Key Management Personnel

i. Shri D.S. Dhesi Chairman-cum Managing Director

ii. Shri Ved Prakash Director

iii. Shri Rajeev Jaideva Director

iv. Shri M.G. Gupta Director

v. Shri Anand Trivedi Director

vi. Shri P.K.Jain Director (w.e.f. 15.05.2013)

b) Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c) Associate

Neelachal Ispat Nigam Ltd.

Devona Thermal Power & Infrastructure Ltd.

d) Joint Ventures

Free Trade Warehousing Pvt. Ltd

Haldia Free Trade Warehousing Pvt. Ltd.

Greater Noida Integrated Waresousing Pvt. Ltd.

Integrated Warehousing Kandla Project Development Pvt. Ltd.

MMTC Pamp India Pvt. Ltd.

MMTC Gitanjali Ltd.

Indian Commodity Exchange Ltd.

Sical Iron Ore Terminal Ltd.

TM Mining Company Limited

Blue Water Iron Ore Terminal Pvt. Ltd.

15. As required by Accounting Standard(AS) 28 " Impairment of Assets " notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets & provision towards impairment loss in value of assets amounting to Rs. 10.88 million (P.Y. Rs. NIL million) has been made during the year.

16. Income tax of Rs. 931.62 million (P.Y. Rs. 1204.71 million) under the head Short Term Loans and Advances consists of Rs. 366.63 million (P.Y. Rs. 357.23 million) paid to Income Tax Department against the disputed demands of Rs. 592.96 million (P.Y. Rs. 367.16 millions) for various assessment years and advance tax/TDS of Rs. 564.99 million (PY Rs. 847.48 million) towards income tax liability for financial years 2013-14. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

17. An amount of Rs. 284.53 million (P.Y. Rs. 284.53 million) is outstanding against M/s AIPL in respect of Mint silver transaction against which full provision has been made. The Company has filed a recovery suit of Rs. 314.02 million (P.Y. Rs. 314.02 million) which includes overdue interest of Rs. 29.49 million (P.Y. Rs. 29.49 million) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs. 1671.97 million (P.Y. Rs. 1671.97 million) which is not tenable as per legal opinion and is being contested.

18. The company had imported pulses on the directives of the Govt. of India during the year 2007-08 to 2010-11. The Government has allowed reimbursement of losses up to 15% of landed cost and trading margin @ 1.2% of CIF value. An amount of Rs. 165.53 million (P.Y. Rs. 165.53 million) on account of claim lodged during 2011-12 which is within 15% of landed cost, is yet to be received. Further an amount of Rs. 27.40 million is also shown recoverable from GOI which has been deducted towards interest on excess payment made by GOI during 2008-09. The scheme was discontinued w.e.f. 2011-12.

19. A claim for Rs. 18.89 million (P.Y. Rs. 18.89 million) against an associate on account of damaged imported Polyester is pending for which a provision of Rs. 15.28 million (P.Y. Rs. 15.28 million) exists in the accounts after taking into account the EMD and other payables amounting to Rs. 3.61 million (P.Y. Rs. 3.61 million). The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been files against the Associate. The associate has also submitted a proposal for consideration of Dispute Settlement Committee.

20. Particulars in respect of Loans and Advances in the nature of loans as required by Clause 32 of the Listing Agreement:

A) Loans and Advances given to Associates in the nature of advances (Interest Free):

B) Particulars of Investments by the Loanees: Rs. NIL (PY Rs. NIL)

21. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

22. At Regional Office, Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs. 32.63 million (P.Y. Rs. 29.64 million) without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit with undertaking to pay interest from due date of payment. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs. 85.98 million (P.Y. Rs. 85.98 million), already paid for and received at the Indian port whose legal judgment is expected soon. Against this the company is holding EMD of Rs. 44.51 million from the backup customer.

23. At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs. 37.50 million (P.Y. Rs. 37.50 million) were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier.

24. The Company has incurred an amount of Rs. 65.43 million (P.Y Rs. 54.86 million) on development of Gomia Coal Block allotted to the company in the year 2006 which has been shown under ''Capital Work in Progress''. During the year, the Ministry of Coal has demanded a bank guarantee of Rs. 298.00 million from the company due to delay in development of the block. The matter has been taken up with the Ministry of Coal to waive the BG keeping in view Coal Methane Block (CBM) allotted to ONGC in 2002 for gas extraction. The final outcome is awaited.

25. The company has reworded its Accounting Policy No. 2.17 II (i) to read as "Contingent liabilities are not recognized but are disclosed in the Notes to the Accounts. Interest, if any on contingent liabilities are generally not disclosed in the Notes to the Accounts being indeterminable" so as to clarify the accounting practice followed by the Company.

The above changes have no financial impact on the company.

26. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2014.

27. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

28. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of Rs. 2000 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

29. Figures for the previous year have been regrouped / re-casted wherever considered necessary.

30. Accounting policies and notes attached form an integral part of the financial statements.


Mar 31, 2013

1. General Information:

The company is incorporated and domiciled in India, and a Mini- Ratna public sector undertaking under the administrative control of Ministry of Commerce & Industry, Government of India. The registered office of the Company is situated at Core-1, Scope Complex, 7, Institutional Area, Lodi Road, New Delhi-110003, India. The company has 13 regional offices at various places in India and a wholly owned subsidiary MMTC Transnational Pte Ltd. (MTPL), Singapore.

The principal activities of the Company are export of Minerals and import of Precious Metals, Non-ferrous metals, Fertilizers, Agro Products, coal and hydrocarbon etc.

The company''s trade activities span across various countries in Asia, Europe, Africa, Middle East, Latin America and North America.

2 EXTRAORDINARY ITEMS

Extraordinary items represent:

i. Consequent upon receipt of final report of special audit conducted by a firm of Chartered Accountants provision of Rs. 155.44 million ( P Y Rs. 1002.05 million) made in the books of accounts against amount recoverable from debtors pertaining to previous years arising on account of certain acts of commission and omission at Regional Office, Chennai relating to Bullion transactions. The balance of debtors has been re stated and credit balance of Rs. 13.40 million and debit balance of Rs. 48.02 million is yet to be reconciled but complete provision of Rs. 1157.49 million against the debit balance has been made. The Company has also filed a complaint with CBI who has since registered two separate FIRs and started detailed investigations. Also Directorate of Enforcement has registered an offence under Prevention of Money Laundering Act, 2002 against two ex-officials and two debtors.

ii. Based upon the findings of the Special Audit conducted by KPMG a provision of Rs. 2288.20 million ( P Y Rs. NIL million) made in the books of accounts against amount recoverable from debtors pertaining to previous years arising on account of certain acts of commission and omission at Regional Office, Hyderabad relating to Bullion transactions. The Company has also filed a complaint with CBI who has since registered FIR and started detailed investigations.

3. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

(i) Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs. 4448.26 million (P.Y. Rs. 1460.40 million) and Corporate Guarantee amounting to Rs. 2017.15 million (P.Y. Rs. 360.40 million) in favour of customer has been given towards performance of contract against which backup guarantee have been obtained from associate suppliers.

b) Corporate Guarantees of Rs. 14409.10 million (P.Y. Rs. 14409.10 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) for securing principal and interest in respect of loans to NINL.

c) Claims against the Company not acknowledged as debts Rs.. 2274.05 million (P.Y. Rs. 816.88 million).

d) Letters of Credit opened by the Company remaining outstanding Rs. 5606.86 million (P.Y. Rs. 8493.22 million).

e) Bills discounted with banks Rs. Nil million (P.Y. Rs. 7.01 million).

f) Sales Tax Demand of Rs. 988.89 million (P.Y. Rs. 995.70 million) in dispute against which Rs. 115.96 million (P.Y. Rs. 94.92 million) has been deposited and Rs. 6.74 million (P.Y. Rs. 6.74 million) covered by bank guarantees.

g) Service Tax demand in respect of business auxiliary service amounting to Rs. 486.48 million (P.Y. Rs. 470.38 million).

h) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs. 1697.08 million as on 31.03.2013 (PY Rs. 987.79 million).

i) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

j) A party has served a legal notice for non lifting of part quantity of coking coal in respect of supplies to M/s NINL, relating to delivery period 2008-09, claiming an amount of Rs. 4273.71 million ($ 78.72 million translated @ Rs. 54.29 being the closing rate of exchange as on 31.03.2013) ( PY Rs. 4005.00 million) along with interest @ 12% p.a. w.e.f. 30th September 2009, which has been refuted since the same is not tenable. MMTC has also put the party on notice to lodge counter claim for non supply of coking coal for the year 2009-10. The matter has been taken up at Govt. level as the supplier is also one of the major supplier of coking coal to other PSUs and all terms, conditions and prices are determined by an Empowered Joint Committee consisting of senior level nominees of Govt. and PSUs.

k) Custom department have raised demand of Rs. 1850.13 million (P.Y. NIL million) at various RO''s during the current year on account of differential custom duty on import of Steam Coal supplied by the company to Power utilities through associate suppliers on back to back terms on fixed margin basis. The liability if any on account of custom duty or sales tax shall be to the account of the backup supplier.

l) In some of the cases amounts included under contingent liabilities relate to commodities handled on Govt. of India''s account and hence the same would be recoverable from the Govt. of India.

(ii) Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2.82 million (P.Y. Rs. NIL million).

GENERAL DISCLOSURES:-

4. Following goods on account of un-billed purchases are held by the Company under deposit and shown under other current assets (note no. 7.6) as well as other current liabilities ( note no. 5.3) .

5. The Company being the nominated agency for import of Gold and Silver has imported Gold under usance L/Cs or availed buyer''s credit. Money received towards sale value are put under Fixed Deposits with banks as margin or otherwise. Interest earned thereon relating to payment received from customers before due date of usance L/C or the buyer''s credit is payable to the customers as a business policy.

6. Based on interim orders of Hon''ble Supreme Court of Small Causes in the matter of mesne profit for the period from June,2000 to March,2002 relating to office premises at Mumbai, an amount of Rs. 30.00million has been deposited with the Court and based on Final Order of Hon''ble Supreme Court Rs. 20.00 million is payable as final settlement amount liability for the full amount exist in accounts. Cheque has been issued by the Mumbai RO after deducting TDS but same has not been accepted by the party and the matter has been referred to the Court, where the decision is pending. Adjustment if any shall be made in accounts after receipt of filnal orders of the court.

7 In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 19.81 million (P.Y. Rs. 23.33 million) which are being contested. Against this, an amount of Rs. 0.30 million (P.Y. Rs. 1.60 million) has been deposited and bank guarantee of Rs. 10.30 million (P.Y. Rs. 10.30 million) furnished.

8. The company has taken decision to replace the existing ERP Package due to various changes taken place in the business model in the recent years and to also meet the latest statutory requirements.

9. The employee''s benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:-

i. Leave Encashment - Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

ii. Post Retirement Medical Benefit (PRMB) - Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment.

iii. Gratuity - Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

iv. Long Service Benefits : Long Service Benefits payable to the employees are as under:-

(a) Service Award amounting to Rs. 2500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs. 50,000/- is payable in lump-sum to the dependants of the employee due death in service.

(c) Payments under Employees'' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs. 12000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs. 12000/- on rendering service of 20 years or more at the time of death.

10. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure ''A''.

11. Related Party Disclosures under AS-18 (As identified & certified by the Management)

A. Name of the related parties and description of relationship:

a) Key Management Personnel

i. Shri D.S. Dhesi Chairman-cum Managing Director (w.e.f.08.10.2012)

ii. Smt. Vijaylaxmi Joshi Chairman-cum Managing Director (upto 05.10.2012)

iii. Shri Sunir Khurana Director (up to 18.09.2012)

iv. Shri Ved Prakash Director

v. Shri Rajeev Jaideva Director

vi. Shri M.G. Gupta Director

vii. Shri Anand Trivedi Director(w.e.f. 03.07.2012)

viii. Shri P.K.Jain Director (w.e.f. 15.05.2013)

b) Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c) Associate

Neelachal Ispat Nigam Ltd.

Devona Thermal Power & Infrastructure Ltd.

d) Joint Ventures:-

Free Trade Warehousing Pvt. Ltd Haldia Free Trade Warehousing Pvt. Ltd.

Greater Noida Integrated Waresousing Pvt. Ltd.

Integrated Warehousing Kandla Project Development Pvt. Ltd.

MMTC Pamp India Pvt. Ltd.

MMTC Gitanjali Private Ltd.

Indian Commodity Exchange Ltd.

Sical Iron Ore Terminal Ltd.

TM Mining Company Limited

Blue Water Iron Ore Terminal Pvt. Ltd.

12. As required by Accounting Standard(AS) 28 " Impairment of Assets " notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

13. Income tax of Rs. 1204.71 million (P.Y. Rs. 1325.78 million) under the head Short Term Loans and Advances consists of Rs. 357.23 million (P.Y. Rs. 293.80 million) paid to Income Tax Department against the disputed demands of Rs. 367.16 million (P.Y. Rs. 293.80 millions) for various assessment years and advance tax/TDS of Rs. 847.48 million (PY Rs. 1031.98 million) towards income tax liability for financial years 2011-12 & 2012-13. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

14. In respect of a case relating to Sterlite, which is still pending in the Court, principle amount of Rs. 157.37 million (P.Y. Rs. 157.37 million) had already been deposited with the court in earlier years by providing full liability. Upon the order of Honorable High Court of Bombay, an amount of Rs. 144.63 million toward interest has also been deposited with court during the current year by charging the same to revenue as exceptional item.

15. An amount of Rs. 284.53 million (P.Y. Rs. 284.53 million) is outstanding against M/s AIPL in respect of Mint silver transaction against which full provision has been made. The Company has filed a recovery suit of Rs. 314.02 million (P.Y. Rs. 314.02 million ) which includes overdue interest of Rs. 29.49 million( P.Y. Rs. 29.49 million ) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs. 1671.97 million ( L.Y. Rs. 1671.97 million ) which is not tenable as per legal opinion and is being contested.

16. The company had imported pulses on the directives of the Govt. of India during the year 2007-08 to 2010-11. The Government has allowed reimbursement of losses up to 15% of landed cost and trading margin @ 1.2% of CIF value. An amount of Rs. 193.50 million (P.Y. Rs. 77.10 million) towards in excess of 15% claim booked in earlier years, has been withdrawn during the current year. The scheme was discontinued w.e.f. 2011-12

17. Against the disputed demand of custom duty, penalty etc amounting to Rs. 241.12 million (P.Y. Rs. 241.12 million) in respect of utilization of Target Plus License for import of RBD palmolin oil, liability of Rs. 241.12 million (P.Y. Rs. 241.12 million) already exists in the accounts. Liability on account of interest, if any, will be provided on final decision of the case.

18. A claim for Rs. 18.89 million (P.Y. Rs. 18.89 million) against an associate on account of damaged imported Polyester is pending for which a provision of Rs. 15.28 million (P.Y. Rs. 15.28 million) exists in the accounts after taking into account the EMD and other payables amounting to Rs. 3.61 million (P.Y. Rs. 3.61 million). The company has requested customs for abandonment which is pending for adjudication. A criminal & civil suit has been files against the Associate. The associate has submitted a proposal for consideration of Dispute Settlement Committee and accordingly paid an amount of Rs. NIL (P.Y. Rs. 1.73 million) during the year.

19. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

20. At Regional Office, Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs. 29.94 million without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs. 85.98 million, already paid for and received at the Indian port.

21. At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs. 37.50 million (P.Y. 37.50 miliion were received during 2011-12 through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company has initiated legal action against the foreign supplier.

22. The company has made certain changes in the Accounting Policies during the year as under:-

i. Accounting Policy No. 2.1 has been reworded to read as "The Financial Statements have been prepared as of a going concern on historical cost convention and in accordance with the mandatory Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956."

ii. Accounting Policy No. 2.2 (a) has been reworded to read as "Purchases and sales are booked on performance of the contract/agreement entered into with the sellers/buyers or against allocation letter received from government. Wherever there is part performance of such contract/agreement/allocation, the part completed is booked as Purchase/Sale" so as to disclose the correctly the practice followed by the company.

iii. Accounting Policy No. 2.2 (d) "Sale during the course of import by transfer of documents of title i.e. high seas sale is booked upon transfer of such documents of title to the goods to buyer before the goods cross the custom frontiers of India" and 2.2 (e) "Purchase/Sale is booked in respect of trade done through commodity exchange like National Spot Exchange backed by physical delivery of goods" has been added to clarify the accounting practice followed by the company.

iv. Accounting Policy No. 2.6 (E) has been reworded by adding the words "as cost of Mobile handsets is reimbursed to officials as per their entitlement, against purchase by the officials in their own name which are not returned to the Company" so as to clarify the basis of charging the cost of mobile sets to revenue.

v. Accounting Policy No. 2.19 has been added related to Operating Lease.

The above changes have no financial impact on the company.

23. Final Dividend @ Rs. 0.10/- per Equity Share of Rs. 1/- each amounting to Rs. 10 crore during 2012-13 has been proposed out of the profit of the previous financial years and remaining undistributed.

24. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2013.

25. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

26. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month as specified in the contractual terms of appointment on payment of Rs. 520 per month for cars below 16 HP and Rs. 780 for cars above 16 HP.

27. Figures for the previous year have been regrouped / re-casted wherever considered necessary.

28. Accounting policies and notes attached form an integral part of the financial statements.


Mar 31, 2012

1. General Information:

The company is incorporated and domiciled in India, and a Mini- Ratna public sector undertaking under the administrative control of Ministry of Commerce & Industry, Government of India. The registered office of the Company is situated at Core-1, Scope Complex, 7, Institutional Area, Lodi Road, New Delhi-110003, India. The company has 13 regional offices at various places in India and a wholly owned subsidiary MMTC Transnational Pte Ltd. (MTPL), Singapore.

The principal activities of the Company are export of Minerals and import of Precious Metals, Non-ferrous metals, Fertilizers, Agro Products, coal and hydrocarbon etc.

The company's trade activities span across various countries in Asia, Europe, Africa, Middle East, Latin America and North America.

2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR):

I. Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs. 1460.40 million (P.Y. Rs. 845.61 million) and Corporate Guarantee amounting to Rs. 360.40 million (P.Y. Rs. 4506.69 million) in favour of customer has been given towards performance of contract against which backup guarantee have been obtained from associate suppliers.

b) Corporate Guarantees of Rs. 14409.10 million (P.Y. Rs. 14409.10 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) for securing principal and interest in respect of loans to NINL.

c) Claims against the Company not acknowledged as debts Rs.. 816.88 million (P.Y. Rs. 1953.16 million).

d) Letters of Credit opened by the Company remaining outstanding Rs. 8493.22 million (P.Y. Rs. 12254.56 million).

e) Bills discounted with banks Rs. 7.01 million (P.Y. Rs. 34.91 million).

f) Sales Tax Demand of Rs. 995.70 million (P.Y. Rs. 839.17 million) in dispute against which Rs. 94.92 million (P.Y. Rs. 107.49 million) has been deposited and Rs. 6.74 million (P.Y. Rs. 7.25 million) covered by bank guarantees.

g) Service Tax demand in respect of business auxiliary service amounting to Rs. 470.38 million (P.Y. Rs. 425.49 million).

h) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs. 987.79 million as on 31.03.2012 (PY Rs. 952.76 million).

i) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non-deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

j) A party has served a legal notice for non lifting of part quantity of coking coal in respect of supplies to M/s NINL, relating to delivery period 2008-09, claiming an amount of Rs. 4005.00 million ($ 78.72 million translated @ Rs. 50.88 being the closing rate of exchange as on 31.03.2012) ( PY Rs. 3511.00 million) along with interest @ 12% p.a. w.e.f. 30th September 2009, which has been refuted since the same is not tenable. MMTC has also put the party on notice to lodge counter claim for non supply of coking coal for the year 2009-10. The matter has been taken up at Govt. level as the supplier is also one of the major supplier of coking coal to other PSUs and all terms, conditions and prices are determined by an Empowered Joint Committee consisting of senior level nominees of Govt. and PSUs.

k) In some of the cases amounts included under contingent liabilities relate to commodities handled on Govt. of India's account and hence the same would be recoverable from the Govt. of India.

3. The Company being the nominated agency for import of Gold and Silver has imported Gold under usance L/Cs or availed buyer's credit. Money received towards sale value are put under Fixed Deposits with banks as margin or otherwise. Interest earned thereon relating to payment received from customers before due date of usance L/C or the buyer's credit is payable to the customers as a business policy.

4. Based on interim orders of Hon'ble Court of Small Causes in the matter of mesne profit for the period from June,2000 to March,2002 relating to office premises at Mumbai, an amount of Rs. 32.33 million has been deposited with the Court and a bank guarantee of Rs. 33.92 million is also submitted pending decision on the appeal. Liability provision has been made in the accounts for the full amount. Interest, if any, on the above will be provided on final outcome of the case.

5. In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 23.33 million (P.Y. Rs. 19.53 million) which are being contested. Against this, an amount of Rs. 1.90 million (P.Y. Rs. 1.60 million) has been deposited and bank guarantee of Rs. 10.30 million (P.Y. Rs. 7.30 million) furnished.

6. The ERP package 'RAMCO' implemented by the Company has more or less stabilized. Any further adjustments in processes and systems that may arise subsequent upon the findings of the systems audit shall be incorporated in due course.

7. The employees benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:- i. Leave Encashment – Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

ii. Post Retirement Medical Benefit (PRMB) – Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment.

iii. Gratuity - Gratuity is paid to all employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

iv. Long Service Benefits : Long Service Benefits payable to the employees are as under:- (a) Service Award amounting to Rs. 2500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs. 50,000/- is payable in lump-sum to the dependants of the employee due death in service.

(c) Payments under Employees' Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs. 12000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs. 12000/- on rendering service of 20 years or more at the time of death.

8. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure 'A'.

9. As required by Accounting Standard(AS) 28 " Impairment of Assets " notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

10. Income tax of Rs. 1325.78 million (P.Y. Rs. 2037.23 million) under the head Short Term Loans and Advances consists of Rs. 293.80 million (P.Y. 309.83 million) paid to Income Tax Department against the disputed demands of Rs. 293.80 million (P.Y. Rs. 309.83 millions) for various assessment years and advance tax/TDS of Rs. 1031.98 million (PY Rs. 1727.39 million) towards income tax liability for financial years 2010-11 & 2011-12. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

11.Loans & Advances include Rs. 157.37 million (P.Y. Rs. 157.37 million) being the amount deposited with the High Court in respect of a case which is still pending. Necessary liability towards principal amount already exists and the provision, if any, towards interest will be made after final decision of the Court.

12.An amount of Rs. 284.53 million (P.Y. Rs. 284.53 million) is outstanding against M/s AIPL in respect of Mint silver transaction against which full provision has been made. The Company has filed a recovery suit of Rs. 314.02 million (P.Y. Rs. 314.02 million ) which includes overdue interest of Rs. 29.49 million( P.Y. Rs. 29.49 million ) which has been decreed in favour of the Company. M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs. 1671.97 million ( L.Y. Rs. 1671.97 million ) which is not tenable as per legal opinion and is being contested.

13. The company had imported pulses on the directives of the Govt. of India during the year 2007-08 to 2010-11. The Government has allowed reimbursement of losses up to 15% of landed cost and trading margin @ 1.2% of CIF value. An amount of Rs. 77.10 million towards excess claim booked in earlier years, has been withdrawn during the current year. The scheme was discontinued w.e.f. 2011-12

14. Against the disputed demand of custom duty, penalty etc amounting to Rs. 247.43 million (P.Y. Rs. 247.43 million) in respect of utilization of Target Plus License for import of RBD palmolin oil, liability of Rs. 247.43 million (P.Y. Rs. 247.43 million) already exists in the accounts. Liability on account of interest, if any, will be provided on final decision of the case.

15. A claim for Rs. 18.89 million (P.Y. Rs. 20.62 million) against an associate on account of damaged imported Polyester is pending for which a provision of Rs. 15.28 million (P.Y. Rs. 17.01 million) exists in the accounts after taking into account the EMD and other payables amounting to Rs. 3.61 million (P.Y. Rs. 3.61 million). The company has requested customs for abandonment which is pending for adjudication. The associate has submitted a proposal for consideration of Dispute Settlement Committee and accordingly paid an amount of Rs. 1.73 million during the year.

B) Particulars of Investments by the Loanees: Rs. NIL (PY Rs. NIL )

16. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

17. At Regional Office, Mumbai, during the year, a foreign supplier has submitted forged shipping documents through banking channels to obtain payment of Rs. 28.30 million without making delivery of the material (copper). However, the company has obtained an interim stay restraining the bank from making the payment under the letter of credit. The same supplier is also fraudulently holding on to the master bills of lading of another shipment of copper which would enable the Regional Office, Mumbai to take delivery and possession of goods valued at Rs. 64.57 million, already paid for and received at the Indian port.

18. At Regional Office, Hyderabad fake bills of lading covering two shipments of copper valued at Rs. 37.50 million were received during the year through banking channels against which no material was received. The foreign supplier has been paid in full through letter of credit after the company received full payment from its Indian customer. The company is in the process of initiating legal action against the foreign supplier and has issued a legal notice.

19. At Regional Office, Jhandewalan, during the year, two bank guarantees amounting to Rs. 18 million submitted by one of the customer against gold supplied on loan, were found to be fake. The company has made full provision in the accounts. The case is under investigation upon filing of an FIR by the company with the Delhi Police.

20. The company has made certain changes in the Accounting Policies during the year as under:- (i) Accounting policy no. 2.2 (b) "In case of certain commodities import of which is canalized through the company, imported on 'Government Account' against authorization letter issued by Government of India, Purchase/Sale is booked in the name of the Company" has been added to reflect the accounting practice followed by the Company.

(ii) Changes in the wording of accounting policy no. 2.2 (c ) (i) the word "consignment" has been replaced with the word "deposit" .

(iii) Changes in the accounting policy no 2.2 (c) (ii) The policy regarding " purchase of gold for domestic sale is accounted for on withdrawal from the consignment stock and fixation of price with the suppliers " replaced with "Purchase of Gold during the year for domestic sale is accounted for on withdrawal from the Gold/Silver under deposit and fixation of price with the suppliers. The stock held by the company at year end as Gold/Silver under Deposit is accounted for under current assets as ' stock towards unbilled purchases' and under current liability as ' amount payable towards unbilled purchases' at the bullion price prevailing as at the close of the year", so as to disclosed the true nature of the transaction.

(iv) Changes in the accounting policy no 2.2 (c) (iii) The policy for "Gold/silver withdrawn on loan basis where from consignment stock, are shown as loan given to parties and shown under Loans and Advances. The corresponding liability towards the stocks received from foreign suppliers is shown under Sundry Creditors. Loan/Sundry Creditors are adjusted when purchase and sales are booked" replaced with "Gold/silver withdrawn on loan basis from the Gold/Silver under deposit, are shown as loan given to customers and shown under Loans and Advances. The corresponding liability towards the stocks received from foreign suppliers is shown under Sundry Creditors. Loan/Sundry Creditors are adjusted when purchase and sales are booked", so as to disclosed the true nature of the transaction.

(v) Changes in the accounting policy no. 2.9 The word "including high sea sales to customers in India" has been added in accounting policy for Secondary Segment for sales with in India.

(vi) Accounting policy no 2.12 (c) (i) has been added and 2.12 (c ) (ii) has been shifted from Imports to Domestic and inserted the words " where stocks are specifically identifiable, actual cost of the material including all expenses incurred up to the point at which they are lying is considered ", in line with the practice followed by the Company.

The above changes have no impact on the profit of the company.

21. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2012.

22. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

23. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month as specified in the contractual terms of appointment on payment of Rs. 520 per month for cars below 16 HP and Rs. 780 for cars above 16 HP.

24. Figures for the previous year have been regrouped / re-casted wherever considered necessary.

25. Accounting policies and notes attached form an integral part of the financial statements.


Mar 31, 2011

(A) Others

Provision is recognized when (i) the Company has a present obligation as a result of the past event.

(ii)a probable outflow of resources is expected to settle the obligation and a reliable estimate of the amount of the obligation can be made.

Reimbursement of the expenditure required to settle a provision is recognised as per contract provision or when it is virtually certain that reimbursement will be received. Provisions are reviewed at each Balance Sheet date.

(I) Contingent liabilities and contingent assets

(i) Contingent liabilities are not recognized but are disclosed in the Notes to the Accounts.

(ii) Contingent assets are neither recognized nor disclosed in the financial statements.

1. TREATEMENT OF EXPENDITURE DURING PROJECT IMPLEMENTATION / CONSTRUCTION PERIOD

Expenditure during construction period is included under Pre-operative expenses and the same is being allocated to the respective fixed assets on the completion of erection/installation.

2. CONTINGENT LIABILITIES & NOTES

1. Contingent Liabilities:

a) Guarantees issued by Banks on behalf of the Company Rs. 845.61 million (P.Y. Rs. 845.80 million). Corporate Guarantee amounting to Rs. 4506.69 million (P.Y. Rs. 4380.00 million) in favour of customer has been given towards performance of contract against which back up guarantees have been obtained from the associate suppliers.

b) Corporate Guarantees of Rs. 14409.10 million (P.Y. Rs. 14409.10 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) for securing principal and interest in respect of loans to NINL.

c) Claims against the Company not acknowledged as debts Rs. 1953.16 million (P.Y. Rs. 1961.07 million).

d) Letters of Credit opened by the Company remaining outstanding Rs. 12254.56 million (P.Y. Rs. 15919.74 million).

e) Bills discounted with banks Rs. 34.91 million (P.Y. Rs. Nil million).

f) Sales Tax Demand of Rs. 839.17 million (P.Y. Rs. 851.97 million) in dispute against which Rs. 107.49 million (P.Y. Rs. 84.25 million) has been deposited and Rs. 7.25 million (P.Y. Rs. 2.30 million) covered by bank guarantees.

g) Service Tax demand in respect of business auxillary service amounting to Rs. 425.49 million (L.Y. Rs. 341.50 million) pending before Customs, Excise & Service Tax Department.

h) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs. 952.76 million (PY Rs. 1118.87 million).

i) A party has served a legal notice for non lifting of part quantity of coking coal in respect of supplies to M/s NINL, relating to delivery period 2008- 09, claiming an amount of Rs. 3511 million ($ 78.72 million translated @ Rs. 44.60 being the closing rate of exchange as on 31.03.2011) ( PY Rs. 3535.00 million) along with interest @ 12% p.a. w.e.f. 30th September 2009, which has been refuted since the same is not tenable. MMTC has also put the party on notice to lodge counter claim for non supply of coking coal for the year 2009-10. The matter has been taken up at Govt. level as the supplier is also one of the major supplier of coking coal to other PSUs and all terms, conditions and prices are determined by an Empowered Joint Committee consisting of senior level nominees of Govt. and PSUs.

j) In one of the RO, auditors have observed for making liability towards CST transit sales of Rs. 644.32 million ( PY Rs. 1947.58 million ) on which in their view liability of CST amounting to Rs. 12.89 million ( PY Rs. 38.95 million) may arise. On the basis of expert opinion and past experience, the company is of the view that no liability is likely to arise on this account. Accordingly no provision has been made. However, this will be suitably dealt with in the accounts after completion of assessment.

k) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees, non- deduction of Provident Fund by Handling Agents/Contractors, disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered.

l) In some of the cases amounts included under contingent liabilities relate to commodities handled on Govt. of IndiaRs.s account and hence the same would be recoverable from the Govt. of India.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil million (P.Y. Rs. 0.36 million).

3. Loans and Advances and Sundry Creditors include Rs. 11846.15 million (P.Y. Rs. 8253.95 million) being notional value of 5695 Kgs. (P.Y. 5117 Kgs) of gold and 1992 Kgs. (P.Y. Nil ) of silver belonging to foreign suppliers issued on loan basis to the Associates/ Customers of the Company.

4. In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 19.53 million (P.Y. Rs. 19.53 million) which are being contested. Against this, an amount of Rs. 1.60 million (P.Y. Rs. Nil million) has been deposited and bank guarantee of Rs. 7.30 million (P.Y. Rs. 7.30 million) furnished.

5. The Company being the nominated agency for import of Gold and Silver has also imported Gold under usance L/Cs or availed buyerRs.s credit. Money received towards sale value are put under Fixed Deposits with banks as margin or otherwise. Interest earned thereon due to payment received from customers before due date of usance L/C or the buyerRs.s credit is payable to the customers as a business policy.

6. Loans & Advances include Rs. 157.37 million (P.Y. Rs. 157.37 million) being the amount deposited with the High Court in respect of a case which is still pending. Necessary liability towards principal amount already exists and the provision, if any, towards interest of Rs. 22.50 million (P.Y. Rs. 22.50 million) will be made after final decision of the Court.

7. Income tax of Rs. 2037.23 million (P.Y. Rs. 1952.33 million) under the head “Loans and Advances” consists of Rs. 309.83 million (PY Rs. 303.52 million) paid to Income Tax Department against the disputed demands of Rs. 309.83 million (P.Y. Rs. 342.65 millions) for various assessment years and advance tax/TDS/FBT of Rs. 1727.39 million (PY Rs. 1648.81 million) towards income tax/fringe benefit tax liability for financial years 2009-10 & 2010-11. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

8. The ERP package „RAMCO” implemented by the Company has more or less stabilized. Systems audit has been conducted and its findings are under consideration of the management. Any further adjustments in processes and systems upon implementation of systems audit shall be incorporated in due course.

9.Valuation of closing stock at market price being lower than cost, has resulted in a loss of Rs. 210.87 million (P.Y Rs. 18.21 million) during the year.

10. An amount of Rs. 284.53 million (L.Y. Rs. 284.53 million) is outstanding against M/s AIPL in respect of Mint silver transaction against which full provision amounting to Rs. 284.53 million (L.Y. Rs. 284.53 million) has been made in the accounts pending adjustment, if any, of excess sale realization. The Company has filed a recovery suit of Rs. 314.02 million ( L.Y. Rs. 314.02 million ) which includes overdue interest of Rs. 29.49 million( L.Y. Rs. 29.49 million ). M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs. 1671.97 million ( L.Y. Rs. 1671.97 million ) which is not tenable as per legal opinion and is being contested.

11.During the year the company has imported pulses on the directives of the Govt. of India. The Government has allowed reimbursement of losses up to 15% of landed cost and trading margin @ 1.2% of CIF value, which works out to Rs. 132.36 million (L.Y. Rs. 311.77 million) on the import made by the company which has been credited to Profit & Loss Account as claims receivable from the Government on accrual basis. However, the reimbursement is released by the Govt. after the sale has been effected. The scheme has since been discontinued w.e.f. 2011-12.

12.During the year an amount of Rs. 228.54 million ( L.Y. Rs. 241.80 million ) towards difference in exchange ( gain) has been shown under cost of sales which has arisen mainly due to adoption of notional exchange rate applicable on the date of bills of lading for initial recognition in reporting currency in respect of import purchases / export sales denominated in foreign currency.

13. In case of coal imported for NTPC supply, sale in some cases have been booked provisionally pending issue of final invoices since final quality analysis at destination is yet to be received. This has no impact on the profitability since the difference, if any, on issuance of final invoice shall be to the account of the supplier.

14.Sale of canalized urea to Deptt. of Fertilisers(DOF), Government of India is made based on allocation letters issued by DOF and by transferring shipping documents. However, no separate agreement is signed with DOF.

15.The proportionate forward premium of Rs. 724.65 million (LY Rs. 226.26 million) for imports and Rs. Nil million (L.Y. Rs. Nil million ) for exports to be recognized in the Profit & Loss Account of the subsequent accounting year in terms of the provisions of Accounting Standard – 11 issued by the Institute of Chartered Accountant of India.

16.In respect of forward exchange contracts outstanding as on 31.3.11 relating to firm commitments and highly probable forecast transactions, the loss of Rs. Nil million (P.Y. loss of Rs. 0.75 million) has been recognized in the Profit & Loss Account on the basis of changes in exchange rate as at the close of the year.

17.Liability of Rs. 60.57 million (P.Y. Rs. 110.00 million) towards superannuation benefit has been made during the year as per DPE guidelines for wage revision.

18.Against the disputed demand of custom duty, penalty etc amounting to Rs.247.43 million (P.Y. Rs. 247.43 million) in respect of utilization of Target Plus License for import of RBD palmolien oil, liability of Rs. 247.43 million (P.Y. Rs. 247.43 million) already exists in the accounts. Liability on account of interest, if any, will be provided on final decision of the case.

19.A claim for Rs. 20.62 million (LY Rs. 20.62 million) against an associate on account of damaged imported Polyester is pending for which a provision of Rs. 17.01 million (LY Rs. 15.54 million) created after taking into account the EMD and other payables amounting to Rs. 3.61 million (LY Rs. 5.08 million). The company has requested customs for abandonment which is pending for adjudication.

20.The employees benefits provided by the Company as required under Accounting Standard 15 (Revised) are as under:- (i) Leave Encashment – Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

(ii) Post Retirement Medical Benefit (PRMB) – Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment.

(iii) Gratuity - Gratuity is paid to all the employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICA division employees the scheme is managed directly by the company through LIC.

(iv) Long Service Benefits : Long Service Benefits payable to the employees are as under :

(a) Service Award amounting to Rs. 2500/- for each completed year of service is payable to the employees on superannuation/voluntary retirement scheme.

(b) Compassionate Gratuity amounting to Rs. 50,000/- is payable in lumpsum to the dependants of the employee due death in service.

(c) Payments under EmployeesRs. Family Benefit Scheme is payable to the dependants of the employee who dies in service till the notional date of superannuation. A monthly benefit @ 40% of Basic Pay & DA last drawn subject to a maximum of Rs. 12000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic Pay & DA last drawn subject to maximum Rs. 12000/- on rendering service of 20 years or more at the time of death.

21. Related Party Disclosures Under AS-18 (As identified & certified by the Management)

Name of the related parties and description of relationship: a) Key Management Personnel

i. Smt. Vijay Laxmi Joshi

Chairman-cum-Managing Director (w.e.f. 22.07.2011)

ii. Shri H.S. Mann

Director & additional charge of Chairman and Managing Director (up to 22.07.2011)

iii. Shri Sanjiv Batra

Chairman and Managing Director (up to 30.09.2010)

iv. Shri S.K. Kar Director ( up to 30.06.2010)

v. Shri A. Mahapatra Director ( up to 31.07.2010)

vi. Shri Sunir Khurana Director

vii. Shri Ved Prakash Director

viii. Shri Rajeev Jaideva Director ( w.e.f. 03.12.2010)

b) Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c) Associate

Neelachal Ispat Nigam Ltd. –

Devona Thermal Power & Infrastructure Ltd.

d) Joint Ventures:- Free Trade Warehousing Pvt. Ltd Haldia Free Trade Warehousing Pvt. Ltd. Greater Noida Integrated Waresousing Pvt. Ltd.

Integrated Warehousing Kandla Project Development Pvt. Ltd. MMTC Pamp India Pvt. Ltd.

MMTC Gitanjali Private Ltd.

Indian Commodity Exchange Ltd. Sical Iron Ore Terminal Ltd. TM Mining Company Limited

22. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure „ARs..

23. As required by Accounting Standard(AS) 28 “ Impairment of Assets ” notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment loss during the year.

24. The company has made certain changes in the Accounting Policies during the year as under :

(i) Changes in the wording of Accounting Policy No.12 :

(a) In the opening para “ In case of back to back transactions, net realizable value is ascertained on the basis of cost plus profit margin” has been added to clarify the ascertainment of net realizable value in case of back to back transactions in line with accounting practice followed by the company.

(b) In first para of 12(b) “ However where stocks are specifically identifiable, actual cost of the material including all expenses incurred up to the point at which they are lying is considered” has been added to clarify the determination of cost in respect of specific identifiable stocks to bring in line with the existing practices followed in such cases.

The above changes have no financial impact on the financials of the company.

(ii) Accounting Policy No. 10(i) relating to Employee Benefits :

ALTC/LTC scheme has been withdrawn and long service benefits i.e. service award, compassionate gratuity, employeesRs. family benefit scheme has been incorporated based on actuarial valuation. Due to this change, the profit for the year has decreased by Rs. 55.10 million.

25. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have not been received in a few cases. However, no adverse communication received from any party.

26. The company has availed exemption from disclosing information for those goods which form less than ten percent of the total value of turnover, purchase, consumption of raw material etc. under paragraphs 3(i)(a), 3(ii)(a) and 3(ii)(b) of Part-II of Schedule VI of the Companies Act, 1956 as per notification No. 301(E) Dated 8th February, 2011 of the Ministry of Corporate Affairs.

27. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2011.

28. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

29. Whole time Directors are allowed usage of staff cars for private purposes up to 12,000 km per annum as specified in the contractual terms of appointment on payment of Rs. 400 per month.

30. Figures for the previous year have been regrouped / recasted wherever considered necessary.

31. Accounting Policies, Schedules & Notes attached form an integral part of the Accounts.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 0.36 million (P.Y. Rs. 19.50 million).

2. Loans and Advances and Sundry Creditors include Rs. 8253.95 million (P.Y. Rs. 7414.99 million) being notional value of 5117 Kgs. (P.Y. 4973 Kgs)ofgold belonging to foreign suppliers issued on loan basis to the Associates/Customers of the Company.

3. In respect of GR-1 forms outstanding beyond due date the Company has filed application with the authorized dealers for extension of time/waiver/ write off. Pending decision on the application, the liability, if any, that may arise is unascertainable. Enforcement Directorate has imposed penalty for Rs. 19.53 million (P.Y. Rs. 19.53 million) which are being contested. Against this, an amount of Rs. Nil million (P.Y. Rs Nil million) has been deposited and bank guarantee of Rs. 7.30 million (P.Y. Rs. 7.30 million) furnished.

4. Duty Credit Authorization of Rs. 502.06 million (P.Y. Rs. 526.62 million) under the Target Plus Scheme 2004-05 which is valid upto 28.02.2011, is held by the Company for duty free imports as admissible under the Scheme.

5. The Company being the nominated agency for import of Gold and Silver has imported Gold under usance L/Cs or availed buyers credit. Money received towards sale value are put under Fixed Deposits with banks as margin or otherwise. Interest earned thereon due to payment received from customers before due date of usance L/C or the buyers credit is payable to the customers as a business policy.

6. Loans & Advances include Rs. 157.37 million (P.Y.Rs.157.37 million) being the amount deposited with the High Court in respect of a case which is still pending. Necessary liability towards principal amount already exists and the provision, if any, towards interest of Rs. 22.50 million (P.Y. Rs. 22.50 million) will be made after final decision of the Court.

7. Income tax of Rs. 1952.33 million (P.Y. Rs. 2233.46 million) under the head "Loans and Advances- consists of Rs. 303.52 million (PY Rs. 424.13 million) paid to Income Tax Department against the disputed demands of Rs. 342.65 million (P.Y. Rs. 457.06 millions) for various assessment years and advance tax/TDS/FBT of Rs. 1648.81 million (PYRs. 1809.33 million) towards income tax/fringe benefit tax liability for financial years 2008-09 & 2009-10. Provision for additional demand, if any, will be made on completion of the Appellate Proceedings.

8. The ERP package "RAMCO" implemented by the Company has more or less stabilized. Any further adjustments in processes and systems that may arise subsequent upon the findings of the systems audit shall be incorporated in due course.

9. Valuation of closing stock at market price being lower than cost, has resulted in a loss of Rs. 18.21 million (P.Y Rs.587.35 million) during the year.

10. An amount of Rs. 284.53 million (L.Y. Rs.284.53 million) is outstanding against M/s AIPL in respect of Mint silver transaction against which full provision amounting to Rs. 284.53 million (L.Y. Rs.284.53 million) has been made in the accounts pending adjustment, if any, of excess sale realization. The Company has filed a recovery suit of Rs. 314.02 million ( L.Y. Rs 314.02 million ) which includes overdue interest of Rs. 29.49 million( L.Y. Rs 29.49 million ). M/s AIPL have also filed a suit against Government Mint/MMTC for damages of Rs. 1671.97 million (L.Y. Rs 1671.97 million ) which is not tenable as per legal opinion and is being contested.

11. During the year the company has imported pulses on the directives of the Govt, of India. The Government has allowed reimbursement of losses up to 15% and trading margin @ 1.2%, which works out to Rs 311.77 million (L.Y. Rs 1004.67 million) on the import made by the company which has been credited to Profits Loss Account as claims receivable from the Government.

12. During the year an amount of Rs 241.80 million ( L.Y. Rs 234.84 million ) towards difference in exchange has been shown under cost of sales which has arisen mainly due to adoption of notional exchange rate applicable on the date of bills of lading for initial recognition in reporting currency in respect of import purchases / export sales denominated in foreign currency.

13. In respect of coal imported for NTPC supply, sale in some cases have been booked provisionally pending issue of final invoices since final quality analysis at destination is yet to be received. This has no impact on the profitability since the difference, if any, on issuance of final invoice shall be to the account of the supplier. The stock has been taken on the basis of certificates from S&H Agencies as they are responsible for delivering full quantity.

14. Sale of canalized urea to Deptt. of Fertilisers(DOF), Government of India is made based on allocation letters issued by DOF and by transferring shipping documents. However, no separate agreement is signed with DOF.

15. The proportionate forward premium of Rs. 226.26 million (LYRs. 182.46 million) for imports and Rs. Nil million (L.Y. Rs.Nil million ) for exports to be recognized in the Profit & Loss Account of the subsequent accounting year in terms of the provisions of Accounting Standard 11 issued by the Institute of Chartered Accountant of India.

16. In respect of forward exchange contracts outstanding as on 31.3.10 relating to firm commitments and highly probable forecast transactions, the loss of Rs. 0.75 million (P.Y loss of Rs. Nil million) has been recognized in the Profit & Loss Account on the basis of changes in exchange rate as at the close of the year.

17. Liability of Rs 160.00 million (P.Y. Rs 59.81 million) towards perquisite & allowances and Rs 110.00 million (P.Y. Rs 50.00 million) towards superannuation benefit has been made during the year as per DPE guidelines for wage revision.

18. Against the disputed demand of custom duty, penalty etc amounting to Rs 247.43 million (P.Y. Rs 112.97 million) in respect of utilization of Target Plus License for import of RBD palmolien oil, an amount of Rs 247.43 million (P.Y. Rs 112.97 million) has been provided in the accounts. Liability on account of interest, if any, will be provided on final decision of the case.

19. Based on interim orders of Honble Court of Small Causes in the matter of mesne profit for the period from 1.7.2000 to 31.3.2002 relating to office premises at Mumbai, an amount of Rs 32.32 million has been deposited with the Court and a bank guarantee of Rs 33.93 million is also submitted pending decision on the appeal. Liability provision has been made in the accounts for the full amount. Interest, if any, on the above will be provided on final outcome of the case.

20. A claim for Rs 20.62 million (LY Rs 20.62 million) against an associate on account of damaged imported Polyester is pending forwhich a provision of Rs 15.54 million (LYRs 15.54 million) has been made after taking into account the EMD and other payables amounting to Rs 5.08 million (LY Rs 5.08 million). The company has requested customs for abandonment which is pending for adjudication.

21. The employees benefits provided by the Company as required under Accounting Standard 15 (Revised) areasunder:-

(i) Leave Encashment-Payable on separation to eligible employees who have accumulated earned and half pay leave. Encashment of accumulated earned leave is also allowed leaving a minimum balance of 15 days twice in a year.

(ii) Post Retirement Medical Benefit(PRMB)-Available to retired employees at empanelled hospitals for inpatient treatment and also for OPD treatment.

(iii) LTC/ALTC-Leave Travel Concession and ALTC is given to all serving employees once in a block of two years by their entitled class of travel.

Liability in respect of benefits in respect of Leave Encashment, PRMB and LTC/ALTC are recognized on the basis of actuarial valuation.

(iv) Gratuity - Gratuity is paid to all the employees on retirement/separation based on the number of years of service. The scheme is funded by the Company and is managed by a separate Trust through LIC. In case of MICAdivision employees the scheme is managed directly by the company through LIC.

22. The Company has made certain changes in the Accounting Policies during the year. The financial impact, if any, of the same is as under :-

(a) Accounting Policy No. 4 relating to Prepaid Expenses has been modified to charge prepaid expenses up to Rs 10000 and deposits up to Rs 5000 in each case due to which the profit for the year has decreased by Rs 0.56 million.

(b) Accounting Policy No.6 has been modified in respect of Depreciation of moveable assets whose written down value at the beginning of the year and / or value in respect of purchases made during the year are Rs 20000 or less. Further, a policy 6(d) has been incorporated for accounting of mobile handsets. Due to above changes in accounting policy, the profit for the year has decreased by Rs 2.52 million

(c) Accounting Policy No. 9 relating to Segment Reporting has been incorporated in line with AS-17 " Segment Reporting" keeping in view the companys organizational structure and the risks and returns of the company. Accordingly, the primary format for reporting segment information has been changed to business segments from geographical segments and secondary format has been changed from business segments to geographical segments. The change has no financial impact on the accounts of the company.

(d) Accounting Policy 10(iii) relating to benefits payable under Voluntary Retirement Scheme has been incorporated to comply with the provisions of AS-15(revised) "Employee Benefits" issued by The Institute of Chartered Accountants of India. The earlier Accounting Policy No.9 relating to Deferred revenue Expenditure has been deleted. Due to the above changes the profit for the year has decreased by Rs 74.97 million.

23. Related Party Disclosures Under AS-18 (As identified & certified by the Management) Name of the related parties and description of relationship:

a) Key Management Personnel

i. ShriSanjivBatra Chairman and Managing Director

ii. ShriS.K. Kar Director

iii. ShriAdarshGoyal Director(upto31.12.2009)

iv. ShriA. Mahapatra Director

v. Shri H.S.Mann Director

vi. ShriSunirKhurana Director

vii. ShriVedPrakash Director (w.e.f. 19.02.2010)

b) Subsidiary

MMTC Transnational Pte. Ltd., Singapore

c) Associate

Neelachal Ispat Nigam Ltd.

Devona Thermal Power & Infrastructure Ltd.

d) Joint Ventures:-

Free Trade Warehousing Pvt. Ltd

Haldia Free Trade Warehousing Pvt. Ltd.

Greater Noida Integrated Warehousing Pvt. Ltd.

Integrated Warehousing Kandla Project Development Pvt. Ltd.

MMTC Pamp India Pvt. Ltd.

MMTC Gitanjali Private Ltd.

Indian Commodity Exchange Ltd.

Sical Iron Ore Terminal Ltd.

24. In terms of AS-17 the Company has identified its Primary Reportable Business Segments as Minerals, Precious Metals, Metals, Agro Products, Coal & Hydrocarbon, Fertilizer and General Trade/others. The Secondary Segments are identified based on the geographical location as Outside India and Within India. Details are placed at Annexure A.

25. As required by Accounting Standard (AS) 28" Impairment of Assets" notified by the Institute of Chartered Accountants of India, the company has carried out the assessment of impairment of assets. There has been no impairment lossduring the year.

26. Letters have been issued to parties for confirmation of balances with the request to confirm or send comment by the stipulated date failing which balance as indicated in the letter would be taken as confirmed. Confirmation letters have been received in a few cases. However, no adverse communication received from any party.

27. There are no micro, small or medium enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31 st March, 2010.

28. Compliance of the Companies (Accounting Standard) Rules 2006 has been made. The Company has large number of transactions and diversified activities, which may have put operational constraints in strictly following the said rules. The deviation if any, have been stated in the accounting policies of the Company.

29. Whole time Directors are allowed usage of staff cars for private purposes up to 12,000 km per annum as specified in the contractual terms of appointment on payment of Rs. 400 per month.

30. Figures for the previous year have been regrouped / recasted wherever considered necessary.

31. Accounting Policies, Schedules & Notes attached form an integral part of the Accounts.

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