Presenting Partner

Life Insurance Corporation of India

Moneycontrol

Budget 2022

Associate Partners:

  • Kotak Mutual Fund
  • Pharmeasy
  • Indiabulls
  • SBI

Presenting Partner

Life Insurance Corporation of India

Moneycontrol

Budget 2022

Technology Partner

Dell Technologies

Associate Partners

Kotak Mutual Fund
Pharmeasy
Indiabulls
SBI
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MMTC Ltd.

BSE: 513377 | NSE: MMTC |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE123F01029 | SECTOR: Trading

BSE Live

Jan 28, 14:56
55.80 3.25 (6.18%)
Volume
AVERAGE VOLUME
5-Day
1,308,697
10-Day
1,025,906
30-Day
632,017
3,093,489
  • Prev. Close

    52.55

  • Open Price

    57.20

  • Bid Price (Qty.)

    55.70 (3227)

  • Offer Price (Qty.)

    55.80 (672)

NSE Live

Jan 28, 14:56
55.70 3.15 (5.99%)
Volume
AVERAGE VOLUME
5-Day
11,800,325
10-Day
9,486,570
30-Day
5,852,149
33,240,803
  • Prev. Close

    52.55

  • Open Price

    56.50

  • Bid Price (Qty.)

    55.70 (2451)

  • Offer Price (Qty.)

    55.80 (4617)

Annual Report

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Director’s Report

ANNUAL REPORT 2005-2006 DIRECTOR'S REPORT To The Members MMTC Limited, New Delhi. Ladies & Gentlemen, On behalf of Board of Directors, I have pleasure in presenting 43rd Annual Report on the performance of your company for the financial year ended 31st March 2006 along with audited statements of accounts, Auditor's Report & Review of Accounts by the Comptroller and Auditor General of India. PERFORMANCE OF THE COMPANY: Your company continued surging ahead on the tremendous strengths of its strategic initiatives/directions, innovative business models, human resources, strong infrastructure & financial strength and notched up excellent performance during 2005-06, which came on the heels of an equally brilliant performance during the previous year 2004-05. Your company, currently holding the no. 1 rank amongst trading companies in India, has in 2005-06 further improved upon its already impressive ever- best performance achieved during the previous year. Against business volumes of Rs.15,123 crores reached during 2004-05, your company achieved a record breaking performance of Rs.16,362 crores during 2005-06 which include export performance of Rs.2,925 crores, best ever import performance of Rs.11,786 crores and an all time high domestic turnover of Rs.1,651 crores. The highlights of your Company's performance during 2005-06 are summarized below: (Rs. in Millions) 2005-06 2004-05 Net Sales/Trade Earnings 163,934 151,381 Cost of Sales 161,716 148,822 Trading Profit 2,218 2,559 ADD: Dividend and other Income 439 441 Less: Establishment & Administrative Overheads 1,008 976 Less: Debts/Claims Written off 190 259 Less: Provisions for Doubtful Debts/Claims/ 67 135 Investments Less: Def. Revenue Expenses 41 96 Profit Before Interest, Dep., Prior Period & Taxes 1,351 1,534 Add: Interest Earned (Net) 394 304 Profit Before Dep., Prior Period & Taxes 1,745 1,838 Less: Depreciation 42 42 Less: Prior Period Adjustment 24 33 Profit Before Taxes 1,679 1,763 Less: Provision for Current Taxes 530 641 Less: Provision for Deferred Taxes 66 50 Profit After Taxes 1,083 1,072 Add: Balance brought forward from the previous year 1,132 426 Balance Which the director have appropriated as 2,215 1,498 under to: (I) Dividend: (i) Interim Dividend on Equity Shares 125 100 (ii) Proposed Dividend 125 125 (II) Dividend Tax 35 31 (III) General reserve 110 110 TOTAL 395 366 Leaving a balance of to be carried forward 1,820 1,132 Turnover & Profit After Tax (PAT): (Rs. Million) Year Turnover Profit After Tax 2003-04 90,992 506 2004-05 151,237 1072 2005-06 163,624 1083 2005-06: Re.1- From Where We Earned: Trading Profit : 0.73 Other Income : 0.14 Interest (Net) : 0.13 2005-06: Re.1- From Where We Spent: Empl : 0.37 Admin : 0.17 Dep : 0.02 Prov : 0.14 Def Rev : 0.02 Tax : 0.28 The performance of diverse business groups of your Company is highlighted in the 'Management Discussions & Analysis Report' which is annexed and forms part of this Report. Awards & Rankings: Following awards and rankings were conferred on your company during 2005- 06: Top ranking in 'Trading Sector' by Business Standard in their ranking of 1000 Indian Corporate giants based on MMTC's performance during Fiscal 2005. MMTC was also conferred 10th rank amongst the top 1000 Corporates based on overall performance during fiscal 2005. Top ranking in 'Trading Sector' and 10th rank on net sales revenue during 2004-05 by Financial Express in their ranking of Top 500 Indian companies. In the same publication,MMTC was also conferred composite rank of 51st rank amongst the top 500 Corporates based on net sales, net profit and total assets etc., during fiscal 2005. CAPEXIL's top export award for the 14th time in a row for continued & sustained exports of Minerals & Ores from India. MMTC Transnational Pte Ltd., Singapore, the wholly onwed subsidiary was ranked 9th (last year 18th) under the category of General Whole Sale Trade by DP Information Group, Earnest & Young and International Enterprise (IE), Singapore, (under Ministry of Trade, Government of Singapore) in their survey on 'Singapore 1000 Companies' for 2006. Ministry of Commerce & Industry, Govt. of India conferred 2nd prize to MMTC for excellent work done for implementation of Official Language Policy. Department of Official Language, Govt of India bestowed first prize to MMTC's Goa Regional Office for outstanding work done for implementation of Official Language Policy. MMTC Regional Office, Kolkatta was bestowed with the Trophy by Town Official Language Committee for effective implementation of Official Language Policy. Dividend: An interim dividend @25% on the paid up equity capital was declared by the Board of Directors and paid to the shareholders on 24th February 2006. The Board of Directors recommend declaration of final dividend of 50% including interim dividend @25% already paid on the equity capital of the Company for the year 2005-06. Reserves: A sum of Rs.7034.89 million was available in the reserves and surplus of your Company as on 1st April 2005. Your Directors have proposed that out of Rs.797.84 million available out of the profits for the year 2005-06, after payment of dividend, and tax thereon, an amount of Rs.110 million, be transferred to general reserves of the Company and balance profits of Rs.687.84 million be carried forward as retained profits. Accordingly an amount of Rs.7832.73 million shall be available in 'Reserves and Surplus' of your Company as on 31st March 2006. Foreign Exchange Earnings & Outgo: The foreign exchange earnings and outgo of your Company during 2005-06 has been as under: EARNING OUTGO Rs./ $ Rs./ $ Million Million Million Million Exports 28,958 653.65 Imports 116,250 2,624.03 Others 35 0.79 Interest 137 3.09 Total 28,993 654.44 Others 373 8.42 Total 116,760 2,635.54 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 S$ 1.46 million. The primary activities of MTPL embrace trading in Minerals, Metals, Fertilizer, Agricultural products, and other merchandise. During the year 2005-06, MTPL achieved business turnover of USD 355.77 million. MTPL generated a Profit before tax of Rs. USD 1.35 million and profit after tax of USD 1.21 million during 2005-06. The net worth of MTPL stood at USD 6.13 million as on 31st March 2006 vis-a-vis USD 5.13 million as at 31st March 05. MTPL declared dividend @25% (net of tax) for the year ended 31.03.06. MTPL has so far paid total dividends exceeding the capital contributed by your company in the wholly owned subsidiary besides multiplying its net worth by Six times since its inception. MTPL continues to enjoy 'Global Trader' (GT) status awarded to it by Singapore Trade Development Board in FY 2000. Pursuant to the provisions of Section 212 of the Companies Act, 1956, the audited financial statements of MTPL together with Director & Auditors report are attached herewith. MMTC'S PROMOTED PROJECT-Neelachal Ispat Nigam Ltd. (NINL): As a strategy to diversify and add value to trading operations, Your company has set up Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant of 1.1 million tonnes capacity, 0.8 million tonne coke ovens and by product unit with captive power plant jointly with Govt. of Orissa with total capital expenditure of nearly Rs. 2000 crores. During 2005-06 NINL advanced & consolidated its position further as a leading saleable Pig Iron manufacturing plant in India. NINL has emerged as an integrated complex with most of the key facilities in place being modern and 'state of the art'. The plant lay out and design combined with availability of land, water, power, railway connectivity and other related infrastructure lends itself an ideal location for future expansion of NINL. The project has firm Iron ore supplies linkages and also has captive Iron ore mining rights for reserves estimated at Rs. 110 million tons. The operational performance of NINL during the year 2005-06 has been as under: Operational Performance: Product Production Production Growth over during during last year 2005-06(MT) 2004-05(MT) % 1. Pig Iron 614,911 552,216 11.35 2. Granulated Slag 188,805 187,020 0.95 3. BF Coke* 601,528 362,300 66.03 4. Crude Tar* 29,628 17,014 74.14 5. Ammonium Sulphate* 9,912 4,984 98.88 6. Scrap 50,563 48,066 5.19 * After commissioning of Coke Oven Battery during July 2004. The highlights of the financial performance of NINL during 2005-06 are tabulated herein below: Financial Performance: (Rs./Cr) Item 2005-06 2004-05 1. Total Sales 1165.24 1138.07 2. Exports 321.41 417.87 3. Domestic Trade 833.17 697.36 4. Pig Iron Sales 762.02 861.67 5. Granulated Slag 3.31 4.44 6. Scrap Sales 55.71 60.33 7. BF Coke Sales* 274.27 148.63 8. Crude Tar* 27.83 14.88 9. Ammonium Sulphate* 4.11 1.97 10. Power Exports 8.94 2.04 * After commissioning of Coke Oven Battery during July 2004. During the year 2005-06 NINL generated a cash profit and net profit of Rs.105.12 crores and Rs.14.74 crores respectively. Computerization and Technology Elevation: During the year, Company's Information Technology capabilities were further strengthened aiming at enhanced management controls/monitoring through generation of additional reporting features for operational excellence. Accessibility of Internal information to the officials of the Company & simplification of the internal processes has been achieved with implementation of Corporate Intranet during the year under report. Also the enhancement of security of IT systems was achieved through formulation & implementation of Corporate IT policy and procedures. Higher accuracy, reliability and availability of system were attained through up gradation of technology to the latest available platform and building up redundancy for circumventing technological failures. Steps have been initiated to set up a remote disaster recovery site with online replication of data, which shall be operational during 2006-07. During the year, steps have been initiated to implement e-procurement and Electronic Data Interchange (EDI) during 2006-07. Corporate Communications: In an increasingly competitive and cost-sensitive world, where the need for corporate brand and the corporate communications continues to grow in importance with audience more geographically distributed and diverse, the Corporate Communication group of your Company has been playing its role proactively towards attainment of company's mission and objectives with enhanced focus on corporate brand building besides maintaining an appropriate and professional relationship with the media. Industrial Relations & Human Resource Management: Cordial and harmonious industrial relations continued to prevail in your company during the year. Joint consultative Machinery (JCM) meetings were held with the apex forums of employees for arriving at amicable decisions on personnel issues besides inviting suggestions for furtherance of your company's mission and policies. No man-days were lost during the year. The aggregate manpower of the company as on 31st March 06 stood at 2031 comprising of 624 officers, 1271 staff & 136 workers. This manpower strength includes 38 officers, 172 staff & 136 workers of erstwhile Mica Trading Company Ltd., which had been merged with your company pursuant to the orders of BIFR. While women employees represented 16.59% (337 employees) of the total manpower, the representation of SC, ST, OBC & physically handicapped employees was to the extent of 20.63% (419 employees), 7.63% (155 employees), 0.83% (17 employees) and 1.33% (27 employees) respectively. During the year 15 officers were inducted through campus recruitment. In an effort for further rightsizing the manpower, Voluntary Retirement Scheme was offered which was availed by 2 officers & 3 staff cadre employees of the Company. Aiming towards further enhancing/upgrading the skills of employees in the fast changing business scenario, 1086 employees (679 officers & 407 staff) were imparted training during the year through programs organized with in- house expertise as well as external resources from renowned institutions/organizations in different spheres of company's activities. The employees deputed for trainings included 237 employees belonging to SC, 48 to ST & 215 women employees. The trainings imparted works out to 2520 training man-days during the year 2005-06. Implementation of Official Language: Your Company has been consistently promoting implementation the Official Language Policy of the Govt. and attainment of the targets given in the Annual Programme of the Department of Official Language, Ministry of Home Affairs, Government 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/Hindi Fortnight were organized at the Corporate Office and Regional Offices. During the year, the Company had the privilege of interacting with the Parliamentary Committee on Official Languages, which inspected your company's Chennai and Kolkatta Regional Offices and was satisfied with the progress made with regard to the use of Hindi in MMTC. Vigilance: Continuing to foster the goodwill & confidence stemming from value based business practices and strengthening the Company as a professionally managed, globally competitive & internationally reputed organization, the vigilance group of your company carried further its focus on preventive vigilance by stepping up surprise inspections. During the year 343 inspections were conducted by vigilance & non-vigilance officers and based on the feedback received, corrective/ preventive measures were suggested. An annual calendar of vigilance inspections has also been made operational. Special emphasis was also laid on updation of trade related drills/manuals besides being instrumental in introduction of e-payments in MMTC. The efforts for introducing e-commerce including e-procurement, e-tendering etc. are likely to bear fruit in 2006-07. During the year under report the activities of vigilance group were further strengthened resulting in liquidation of a large number of pending departmental Inquiries. Vigilance group of your Company was also instrumental in organizing 'Vigilance Awareness Week' in various offices of MMTC in November 2005 whereat stress was laid upon strengthening of preventive vigilance machinery, streamlining systems/trade drills, procedures and record management to bring enhanced transparency in public dealings. Emphasis was also laid on urgency to switch over to e-commerce. The year also marked vigilance Officers being deputed on training programs for updating their skill levels besides organizing an In-house training program for non vigilance officers to equip them with basic knowledge and skills about vigilance and its functions. 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 has come into force w.e.f. 31st December 2005. The said Code has been hosted on website of your company. All Board Members and Senior Management Personnel to whom the said Code is applicable have affirmed compliance of the same for the period ended 31st March 2006. Public Deposit Scheme: As on 31st March 2006, five deposits with your Company amounting to Rs.86,000/- remained unclaimed beyond due dates of maturity for refund despite repeated reminders to submit deposit receipts for refunds. Pursuant to provisions of section 205C of Companies Act, 1956, one deposit amounting to Rs. 10,000/- together with interest due thereon has been deposited with Investor Education and Protection fund established by Govt. of India. Comments of C&AG and Statutory Auditors and Management Replies thereon: The comments of Comptroller & Auditor General of India (C&AG) under section 619(4) of the Companies Act, 1956 on the accounts of the Company for the year ended 31.03.2006 along with the review of the accounts of your Company by C & AG, Statutory Auditors' observations and management replies thereto are annexed to this report. Conservation of Energy: During the year 2005-06, 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.24 lakhs per annum or Rs.2.00 lakhs per month during the year 2005-06. Directors' Responsibility Statement: In accordance with 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 31.3.2006; 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; and iv) That the Directors have prepared the annual accounts on a going concern basis. Board of Directors: Shri Sanjiv Batra, Whole Time Director (Marketing) on the Board of MMTC relinquished his charge on 18th August 05. Shri G.P. Sharma, Whole Time Director (Personnel) on the Board of MMTC relinquished his charge upon superannuation on 31st January 06. Shri M.P. Gupta, Whole Time Director (Marketing) on the Board of MMTC relinquished his charge upon superannuation on 31st March 06. Shri Amarendra Mahapatra took over the charge of Whole Time Director (Personnel) on the Board of MMTC w.e.f. 16th February 06. Shri H.S. Mann took over the charge of Whole Time Director (Marketing) on the Board of MMTC w.e.f. 3rd April 06. The Board places on record its appreciation for the commendable services and the contributions made by S/Shri Sanjiv Batra, M.P. Gupta and G.P. Sharma, towards effective discharge of the functions of the Board and its Committees. The Board also welcomes Shri A. Mahpatra & Shri H.S. Mann and expresses its 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, Shri Adarsh R. Goyal, Director (Marketing), Shri S.K. Kar, Director (Finance) and Dr. Christy L. Fernandez, part time Director shall retire at the AGM and being eligible have offered themselves for reappointment. Acknowledgements: Your Directors are thankful to the Department of Commerce, all Govt. Agencies, RBI and other Banks, Railways, Customs, Ports, NMDC, Suppliers and Customers for their valuable support and cooperation during the year. Your Directors also wish to place on record their deep sense of appreciation for the committed services rendered by managers and staff of your company without which it would not have been possible to realize significant business and profit recorded during the year. By the Order of the Board Place: New Delhi (S.D. Kapoor) Dated: 28th July 2006 Chairman-cum-Managing Director Annexure to Directors' Report Conservation of Energy: Power and Fuel Consumption: Under section 217(1)(e) of the Companies Act 1956, statement containing particulars pursuant to Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 for the financial year ended 31.03.2006 for Disclosure of particulars with respect to Conservation of Energy: Current Year Previous Year (2005-06) (2004-05) 1. Electricity: Purchase(KWh) (At Annual Minimum Guarantee) 3,09,012 3,09,012 Total cost (Rs. in lacs) 12.39 16.08 Average Rate (Rs./kwh) 4.01 5.20 2. Coal: Quantity (MT) - - Total cost (Rs. in lacs) - - Average Rate (Rs. per MT) - - 3. Diesel Oil: Purchase (Lt.) - - Total Cost (Rs. in lacs) - - Average Rate (Rs. per Lt.) - - 4. LDO: Purchase (Lt.) - - Total cost (Rs. in lacs) - - Average Rate (Rs. per Lt.) - -

Director’s Report