The Members 
 MMTC Limited, New Delhi.
 
 Ladies & Gentlemen,
 
 On behalf of Board of Directors, I have pleasure in presenting 48th
 Annual Report on the performance of your company for the financial year
 ended 31st March 2011 along with audited statements of accounts,
 Auditor''s Report & Review of Accounts by the Comptroller and Auditor
 General of India.
 
 RESULTS OF OPERATIONS
 
 Your Company recorded its highest ever topline consecutively for the
 seventh year. Your company achieved record level business turnover of
 Rs. 688,545 million during 2010-11 registering a growth of over 53%
 over the previous year. This best ever business turnover since MMTC''s
 inception in 1963 includes Exports of Rs. 36,934 million, highest ever
 Imports of Rs. 633,008 million and domestic trade of Rs. 18,603
 million. The other trade related earnings contributed Rs. 2,015
 million. The trading profit earned by your Company stood at Rs. 3,300
 million as against Rs 3,176 million during last year. The net profit
 earned by your company during 2010-11 amounted to Rs. 1,216 million
 
 The highlights of the Company''s performance during 2010-11 are as
 below: -
  
                                                  (Rs. in million)
 
                                            2009-10          2010-11
 
 Exports                                    32,228           36,934
 
 Imports                                   399,690          633,008
 
 Domestic                                   19,324           18,603
 
 Other trade earnings                        1,397            2,015
 
 Net Sales/ Trading Earnings               452,639          690,560
 
 Trading profit                              3,176            3,300
 
 Profit Before Taxes                         3,331            1,918
 
 Profit after Taxes                          2,162            1,216
 
 Dividend
 
 (i) Proposed Dividend                         450              250
 
 (ii) Dividend Tax                              75               41
 
 Reserves and Surplus                       12,371           12,797
 
 The performance of different business groups of your Company is
 highlighted in the Management Discussions and Analysis Report, which is
 annexed and forms part of this Report.
 
 AWARDS & RANKINGS
 
 Following Awards and Rankings were conferred on your Company during
 2010-11:
 
 - CAPEXIL’s award for Highest Export in Minerals and Ores Sector for
 the year 2009-10(19th time in a row).
 
 - “Top Exporters for the year 2008-09,Gold Trophy(Merchant Exporter)”
 by EEPC(Northern Region).
 
 - Dun & Bradstreet (D&B) and Rolta Corporate Award 2010 in Trading
 Sector.
 
 - Ranked 4th by Business Today in their publication “BT 500 - 2010
 Public Sector Companies” .
 
 - Ranked 8th by Dun & Bradstreet in their publications “India’s Top 500
 Companies 2010” and “India’s Top PSUs 2011”
 
 - Ranked 11th by Business Standard in their publication “BS1000”
 released in March 2011.
 
 EQUITY SHARE CAPITAL & DIVIDEND
 
 During the year under report equity shares of your company of face
 value Rs.10/- each were sub- divided into ten shares of face value
 Re.1/- each. Also, Bonus Shares in the ratio of 1:1 were issued on 5th
 August 2010. This resulted in increase of the equity capital of your
 company from Rs.500 million comprising of 50 million shares of Rs.10/-
 each to Rs.1000 million comprising of 1000 million shares of Re.1/-
 each. The Board of Directors recommends declaration of dividend of 25%
 on the enhanced post Bonus equity capital of the Company for the year
 2010-11.
 
 RESERVES
 
 A sum of Rs. 12,371.47 million was available in the reserves and
 surplus of your Company as on 1st April 2010. During the year 2010-11
 an amount of Rs. 500 million was withdrawn from the reserves for
 issuance of bonus shares in the ratio of 1:1. Your Directors have
 proposed that out of Rs.925.88 million available out of the profits for
 the year 2010-11, after payment of dividend and tax thereon, an amount
 of Rs.130 million be transferred to General Reserves of the Company and
 balance profit of Rs.795.88 million be carried forward as retained
 profits. Accordingly an amount of Rs.12,797.35 million shall be
 available in Reserves and Surplus of your Company as on 31st March
 2011.
 
 SUBSIDIARY COMPANY
 
 The wholly owned subsidiary of your Company - MMTC Transnational Pte.
 Ltd. Singapore (MTPL) was incorporated in October 1994 under the laws
 of Singapore with a share capital of USD 1 million. During the year
 2010-11, MTPL achieved its best business turnover of USD 710 million,
 since its inception.  The Profit after tax earned by MTPL during
 2010-11 amounted to USD 2.32 million. The net worth of MTPL stood at
 USD 18.23 million as on 31st March 2011. MTPL has so far paid total
 dividends of US$ 8.27 million as against capital of US$ 1 million
 contributed by your company besides multiplying its net worth by over
 18 times since its inception.
 
 MTPL continues to enjoy prestigious Global Trader (GT) status awarded
 to it by International Enterprise Singapore since FY 2000.
 
 Pursuant to the provisions of Section 212 of the Companies Act, 1956,
 the audited financial statements of MTPL together with Director''s
 Report & Auditor''s report are attached herewith.
 
 MMTC''S PROMOTED PROJECT-Neelachal Ispat Nigam Ltd. (NINL)
 
 Your company had set up Neelachal Ispat Nigam Limited (NINL) - an iron
 & steel plant of 1.1 million tonnes capacity, 0.8 million tonne coke
 oven and by product unit with captive power plant, jointly with Govt.
 of Orissa. The project has firm Iron ore supply linkages and also has
 captive Iron ore mining rights for reserves estimated at about 150
 million tons. The construction of phase-II of the Project (Steel making
 facilities) with an estimated cost of Rs.18,550 million is in advance
 stages & is likely to commence trial production by end of current
 financial year. During the year 2010-11, NINL achieved a sales turnover
 of Rs.16,158 million which includes export of 405,900 tonnes of pig
 iron worth Rs. 8,237 million, domestic sales of 114,491 tonnes of pig
 iron valued at Rs 2,553 million and 156,277 tonnes of BF coke valued at
 Rs. 2,814 million.
 
 Future Projects/ Joint Ventures
 
 Aiming at diversification and with a view to add value to its existing
 trading operations, your Company has participated in various joint
 ventures under public- private partnership route. These value
 multiplier initiatives to enhance your company’s future sustainability
 are briefed hereunder:
 
 (i) Your company has promoted a Commodity Exchange under the name and
 style of Indian Commodity Exchange Limited which has since commenced
 operations in November 2009.
 
 (ii) Your company is participating in the equity of a Currency Futures
 Exchange under the name and style of United Stock Exchange of India
 Ltd. which has commenced operations in September 2010.
 
 (iii) Your company has joined hands with an international producer as a
 joint venture partner for setting up a gold/silver medallion
 manufacturing unit, which would also include a gold refinery as an
 integral part, under the name and style of MMTC-Pamp India Private
 Limited. The civil construction activities for medallion manufacturing
 unit in Haryana have already been completed and the medallion
 manufacturing unit commenced trial production in February 2011. The
 said medallion manufacturing unit has since commenced commercial
 production in April 2011.
 
 (iv) For effective marketing of the finished products from above unit,
 as well as jewellery from other sources, your company is setting up, in
 partnership with a leading Indian company, a chain of retail stores at
 various cities in India for medallions, jewellery and its homegrown
 brand of ''SANCHI'' silverware. Towards this end a special purpose
 vehicle (SPV) under the name and style of MMTC-Gitanjali Private
 Limited has been incorporated and 17 retail outlets have already been
 opened in various cities/ towns in India.
 
 (v) Your company has set up a permanent berth with loading facilities
 for iron ore at Ennore Port jointly with SICAL and L&T Infrastructure
 Ltd. under the name and style of M/s. SICAL Iron Ore Terminals Limited.
 The berth is operationally ready since October 2010 but due to ban on
 exports of iron ore by Karnataka State Govt. the terminal has not been
 formally commissioned as yet. Once exports resume, the terminal will
 provide an important outlet for such exports.
 
 (vi) Your company is also developing a deep draught iron ore loading
 berth at Paradeep Port (Orissa) jointly with Noble Group Ltd. and
 Gammon Infrastructure Projects Ltd. under the name and style of M/s.
 Blue Water Iron Ore Terminal Private Ltd. The project is in the initial
 phase and is expected to commence construction by end of the current
 calendar year after forest clearance has been received from the
 authorities concerned.
 
 (vii) Towards investing in mining exploration your Company has set up a
 joint venture company with M/s. TATA Steel Ltd. under the name and
 style of TM Mining Ltd. for exploration and development of mines for
 minerals, ferrous and non-ferrous ores, precious metals, diamonds and
 coal etc., both in India and abroad.
 
 (viii) To facilitate promotion of two-way trade, the SPV promoted by
 your Company in association with IL&FS has been allotted land to set up
 free trade and warehousing zones at Haldia and Kandla on lines similar
 to Special Economic Zones. To facilitate the same, process to induct
 strategic partner in the projects has been initiated.
 
 (ix) Your company has been allotted a coal mine in the Jharkhand State
 having estimated reserves of about 700 million MT. Prospecting license
 for the same has since been issued by the concerned authorities and the
 pre-feasibility study completed. Actions for further exploration of the
 coal block for preparing geological report /mining plans has since been
 initiated.
 
 INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT
 
 Cordial and harmonious industrial relations continued to prevail in
 your company with no man-days being lost during the year. Regular
 meetings were held with the Unions / Associations for arriving at
 amicable resolution of personnel issues with a view to achieve
 Company’s goals and objectives.
 
 The aggregate manpower of the company as on 31st March 2011 stood at
 1,767, including five Board level executives, the balance comprising of
 584 Officers, 1094 staff and 84 workers. This includes 20 officers, 126
 staff & 84 workers of erstwhile Mica Trading Company Ltd., which had
 been merged with your company pursuant to the orders of BIFR. While the
 composite representation of the total manpower consisted of women
 employees representing 18.68% (330 employees) of the total manpower,
 the representation of SC, ST, OBC & persons with disabilities (PWD) was
 to the extent of 21% (371 employees), 7.53% (133 employees), 1.75% (31
 employees) and 1.87% (33 employees) respectively. During the year 21
 officers were inducted through campus recruitment. Presidential
 Directives on reservations for SCs, STs, OBCs and PWD in services were
 followed fully in recruitment and promotion.
 
 Aiming towards further enhancing / upgrading the skills of employees in
 the constantly changing business scenario 1,251 employees were imparted
 training during the year in different spheres of company’s activities.
 This was done through programmes organized both with in-house expertise
 as well as external resources from renowned institutions /
 organizations. The employees deputed for training included 182
 employees belonging to SC, 81 to ST and 313 women employees. In terms
 of man-days such training works out to 2,197 training man-days during
 the year 2010-11.
 
 IMPLEMENTATION OF OFFICIAL LANGUAGE
 
 Your Company is committed to uphold Official Language Policy of the
 Government. During the year 2010-11, your company consistently strived
 to adhere and implement the Official Language Policy and meet the
 targets given in the annual programme issued by the Department of
 Official Language, Ministry of Home Affairs, govt. of India. Towards
 this and to promote usage of the Official Language by employees of the
 company, several programs in the form of Hindi Workshops, Hindi Week/
 Fortnight were organized at the Corporate Office and Regional Offices.
 
 During the year the Company had the privilege of interacting with the
 Drafting and Evidence Sub- Committee of the Committee of Parliamentary
 on Official Languages when it inspected SRO Cochin of your company.
 
 VIGILANCE
 
 To enhance the goodwill & confidence emanating from value based
 business practices, the Vigilance group of your company carried further
 its focus on system improvement and preventive vigilance. An annual
 calendar of vigilance inspections was prepared by the group well in
 advance to ensure systematic and regular vigilance inspections. During
 the year regular inspections were conducted by vigilance &
 non-vigilance officers and based on the feedback received, corrective/
 preventive measures were suggested. Special emphasis was also laid on
 updation of trade related drills/ manuals, streamlining of tendering
 and other procedures in line with the guidelines issued by Central
 Vigilance Commission
 
 During the year under report Vigilance group of your Company was also
 instrumental in organizing “Vigilance Awareness Week” in various
 offices of MMTC in November 2010 whereat stress was laid upon
 increasing vigilance awareness amongst employees and business
 associates, to bring enhanced transparency in public dealings.
 
 CORPORATE SOCIAL RESPONSIBILITY
 
 Your Company has been a responsible corporate citizen since its
 inception in 1963, responding through resources and manpower in times
 of need. Corporate Social Responsibility was adopted as a Corporate
 Policy in the year 2006-07 with specific guidelines. The focus being
 education, health care, promotion of art & culture and community
 activities including relief in times of natural calamities. The CSR
 Policy was subsequently aligned to the CSR Guidelines laid down by the
 Department of Public Enterprises in 2009-10. Your company’s CSR focus
 during 2010-11 was on building educational infrastructure for deprived
 sections of society and tsunami affected areas, literacy promotion,
 facilitating computer education and creating drinking water & health
 care facilities. In addition, your company also contributed towards the
 promotions of sports, art & culture. During this period sustainable
 development initiatives like afforestation at Bellary (Karnataka) and
 Jajpur & Baril (Odisha) by planting saplings and construction of two
 check dams to facilitate irrigation in Jajpur District (Odisha) were
 also undertaken.  A total of Rs. 36.15 million was spent on these
 initiatives during the year.
 
 CORPORATE GOVERNANCE
 
 Corporate governance is an area of major significance not only to
 governments and business but to all who are affected by organizations
 in some way, whether as investors, directors, employees, suppliers,
 customers or the community in general. Your Company reposes its firm
 faith in continuous development, adoption and dedication towards the
 best corporate governance practices.
 
 A separate report on corporate governance along with Statutory Auditor
 certificate regarding compliance of the stipulations relating to
 corporate governance specified in clause 49 of the listing agreement(s)
 signed with stock exchanges is annexed to and forms part of this
 report.
 
 CODE OF CONDUCT
 
 Pursuant to Clause 49 (I)(D) of the Listing Agreement signed with Stock
 Exchanges, a detailed Code of Conduct for Board Members and Senior
 Management Personnel has been laid down and hosted on the website of
 your company. All Board Members and Senior Management Personnel (except
 one) on the regular rolls of the company as on 31st March 2010, to whom
 the said Code is applicable have affirmed compliance of the same for
 the period ended 31st March 2011. Action against the one defaulting
 General Manager (under suspension) is in progress.
 
 PUBLIC DEPOSIT SCHEME
 
 As on 1st April 2010, there were no outstanding public deposits and the
 company did not invite/ accept any public deposit during the year ended
 31st March 2011.
 
 STATUTORY AUDITOR’S REPORT
 
 The Statutory Auditors have not given any comments having an impact on
 the profit for the year 2010- 11. Applicable disclosures have been made
 in the ‘notes forming part of accounts’ in respect of other
 observations contained in the report of statutory Auditors, as annexed,
 which have no financial impact on the profit for the year 2010-11.
 
 COMMENTS OF COMPTROLLER & AUDITOR GENERAL OF INDIA
 
 The Comptroller & Auditor General of India(C&AG) has given ‘Nil’
 comments under section 619(4) of the Companies Act, 1956 on the
 accounts of the Company for the year ended 31.03.2011.The communication
 dated 17th August 2011 of C & AG in this regard is annexed herewith.
 
 CONSERVATION OF ENERGY
 
 During the year 2010-11, there was no activity in Mica group of your
 company. Pursuant to Section 217(i)(e) of the Companies Act, 1956, a
 statement on conservation of energy is annexed to this report.
 
 PARTICULARS OF EMPLOYEES
 
 Pursuant to provisions of section 217(2A) of the Companies Act, 1956
 read with the Companies (Particulars of Employees) Rules, 1975, as
 amended from time to time, it is stated that there were no employees
 who were in receipt of remuneration exceeding Rs.60 lakhs per annum or
 Rs. 5.00 lakhs per month during the year 2010-11.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the provisions of Section 217(2AA) of the Companies Act,
 1956, your Directors state:
 
 i) That in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 ii) That the Directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit of the Company for the year ended 31.3.2011;
 
 iii) That the Directors have taken a proper and sufficient care for the
 maintenance of the adequate accounting records in accordance with the
 provisions of Companies Act, 1956 for safeguarding the assets of the
 Company and for preventing and detecting fraud and other
 irregularities;
 
 iv) That the Directors have prepared the annual accounts on a going
 concern basis.
 
 BOARD OF DIRECTORS
 
 Following are the changes in the Board of Directors of your company
 since 1st April 2010:- - Shri S K Kar relinquished the charge of Whole
 Time Director (Finance) on 30th June 2010 on superannuation.
 
 - Shri A Mahapatra relinquished the charge of Whole Time Director
 (Personnel) on 30th July 2010 on superannuation.
 
 - Shri Sanjiv Batra relinquished the charge of Chairman & Managing
 Director on 30th September 2010 on superannuation.
 
 - Shri H S Mann, Director (Marketing) assumed the additional charge of
 CMD w.e.f. 6th October, 2010 until 22nd July 2011
 
 - Dr S Behuria, relinquished the charge of part-time Director on the
 Board of MMTC and Shri Saurabh Chandra AS&FA, DIP&P & Department of
 Commerce, Ministry of Commerce & Industry took over as part time
 Director on the Board of MMTC vice Dr S Behuria w.e.f. 6th October
 2010.
 
 - Shri Saurabh Chandra, relinquished the charge of part-time Director
 on the Board of MMTC and Dr. Rajan Katoch, AS& FA, Department of
 Commerce, Ministry of Commerce & Industry took over as part time
 Director on the Board of MMTC vice Shri Saurabh Chandra w.e.f.7th
 December 2010.
 
 - Shri Rajeev Jaideva took over the charge of Whole Time Director
 (Personnel) on the Board of MMTC w.e.f. 3rd December 2010.
 
 - Shri Anil Razdan took over the charge of Part Time Non-official
 (Independent) Director on the Board of MMTC w.e.f. 13th July 2011.
 
 - Shri S Krishnan took over the charge of Part Time Non-official
 (Independent) Director on the Board of MMTC w.e.f. 14th July 2011.
 
 - Shri G S Vedi took over the charge of Part Time Non-official
 (Independent) Director on the Board of MMTC w.e.f. 14th July 2011.
 
 - Shri Arun Balakrishnan took over the charge of Part Time Non-official
 (Independent) Director on the Board of MMTC w.e.f. 16th July 2011.
 
 - Shri H S Mann relinquished the charge of Director(Marketing) &
 additional charge of Chairman & Managing Director on 22nd July 2011.
 
 - Smt Vijaylaxmi Joshi, Additional Secretary, Department of Commerce,
 MOC&I assumed the additional charge of Chairman-cum-Managing Director
 w.e.f. 22nd July 2011 vice Shri H S Mann.
 
 The Board places on record its deep appreciation for the commendable
 services and the contributions made by Dr S Behuria, Shri Saurabh
 Chandra, Shri Sanjiv Batra, Shri S K Kar, Shri A Mahapatra and Shri H S
 Mann towards effective discharge of the functions of the Board and its
 Committees. The Board also welcomes Smt Vijaylaxmi Joshi, Dr. Rajan
 Katoch, Shri Rajeev Jaideva, Shri Anil Razdan, Shri S Krishnan, Shri G
 S Vedi & Shri Arun Balakrishnan and expresses confidence that the
 Company shall immensely benefit from their rich and varied experience.
 
 In terms of provisions of Article 87(4)(A) of Articles of Association
 of the Company regarding rotational retirement of Directors, Smt Aruna
 Makhan, Non Official Part time Director, Shri P K Chaudhery, Govt
 Nominee Part time Director, Shri Ved Prakash, Director (Marketing) and
 Shri Anil Baijal, Non Official Part time Director, shall retire at the
 AGM and being eligible have offered themselves for reappointment.
 
 ACKNOWLEDGEMENTS
 
 Your Directors would like to acknowledge and place on record their
 sincere appreciation of all stakeholders- shareholders, Department of
 Commerce, all Govt. Agencies, RBI and other Banks, Railways, Customs,
 Ports, NMDC, Customers, Suppliers and other business partners for the
 excellent support and cooperation received from them during the year.
 Your Directors also recognize and appreciate the efforts and hard work
 of all the employees of the Company and their continued contribution to
 its progress.
 
                                     By the Order of the Board
 
                                                         Sd/-
 Place : New Delhi                          (Vijaylaxmi Joshi)
 Dated : 18.08.2011             Chairman-cum-Managing Director