(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.