2.13 Provisions

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.

2.14 Contingent Liabilities / Assets
Contingent Liabilities

Contingent liabilities are not recognized but disclosed in Notes to the Accounts when the company has possible
obligation due to past events and existence of the obligation depends upon occurrence or non-occurrence of
future events not wholly within the control of the company.

Contingent liabilities are assessed continuously to determine whether outflow of economic resources have
become probable. If the outflow becomes probable then relative provision is recognized in the financial
statements.

Where an entity is jointly and severally liable for an obligation, the part of the obligation that is expected to be

met by other parties is treated as a contingent liability. The entity recognises a provision for the part of the

obligation for which an outflow of resources embodying economic benefits is probable, except in the extremely

rare circumstances where no reliable estimate can be made

Contingent Liabilities are disclosed in the General Notes forming part of the accounts

Contingent Assets

Contingent Assets are not recognised in the financial statements. Such contingent assets are assessed
continuously and are disclosed in Notes when the inflow of economic benefits becomes probable. If it's virtually
certain that inflow of economic benefits will arise then such assets and the relative income will be recognised in
the financial statements.

2.15 Leases

An asset held under lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset.

An asset held under lease is classified as an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership of an underlying asset.

The company normally enters into operating leases which are accounted for as under:-

(i) Rental income from operating leases is recognized either on a straight-line basis or another systematic
basis over the term of the relevant lease.

(ii) Where the company is lessee, at commencement date right to use of assets are recognized at cost and the
present value of lease payments that are not paid recognized as lease liability. Subsequently, right of use
assets measured by using cost model with any adjustment required for re-measurement of lease liability
and lease liability is measured by increasing the carrying amount to reflect the interest on lease liability,
reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to
reflect any re-assessment or lease modifications.

(iii) As a practical expedient , short term leases and leases for which the underlying assets is of low value upto
Rs.1,00,000/- per month or Rs.12,00,000/-per year are not recognized as per the provisions given under
Ind AS-116 (Leases) and are recognized as an expense on a straight line basis over the lease term.

2.16 Employee benefits

i. Provision for gratuity, leave compensation and long service benefits i.e. service award, compassionate
gratuity, employees' family benefit scheme and special benefit to MICA division employees is made on the
basis of actuarial valuation using the projected unit credit method. Re-measurement, comprising actuarial
gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets
(excluding interest), is reflected immediately in the statement of financial position with a charge or credit
recognized in other comprehensive income in the period in which they occur. Re-measurement recognized
in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to
Statement of Profit or Loss and any change due to plan amendment, curtailment and settlement is
considered for determining the current service cost, net interest, past service cost or gain/loss for settlement
etc.

ii. Provision for post-retirement medical benefit is made on defined contribution basis.

iii. Provident fund contribution is made to Provident Fund Trust on accrual basis.

iv. Payment of Ex-gratia and Notice pay on Voluntary Retirement are charged to revenue in the year incurred.

v. Superannuation Pension Benefit, a defined contribution scheme is administered by Life Insurance
Corporation of India (LIC). The Company makes contributions based on a specified percentage of each
eligible employee's salary.

Short-term employee benefit obligations

Short-term employee benefit obligations are measured on an undiscounted basis and are recorded as expense
as the related service is provided. A liability is recognized for the amount expected to be paid under PRP
Scheme, if the Company has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

2.17 Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from 'profit before tax' as
reported in the statement of profit or loss and other comprehensive income/statement of profit or loss because

of items of income or expense that are taxable or deductible in other years and items that are never taxable or
deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized. Such deferred tax assets and
liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from
the initial recognition of goodwill.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the company is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable
profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the
foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax
arises from the initial accounting for a business combination, the tax effect is included in the accounting for the
business combination.

Dividend Distribution Tax

Company is recognising the dividend distribution tax payable on payment of dividend under other equity since
the dividend payable consequent upon approval of shareholders in Annual General Meeting is also presented
under other equity.

Uncertainty over income tax treatments

Company while determining taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax
rates, when there is uncertainty over income tax treatments under Ind AS 12 company is considering the
probability of accepting the same treatment by income tax authorities and any change due to this adjusted
retrospectively with cumulative effect by adjusting equity on initial application without adjusting comparatives.

2.18 Investment Property

Investment properties are properties held to earn rentals and/or for capital appreciation (including property
under construction for such purposes). Investment properties are measured initially at cost, including
transaction costs. All of the Company's property interests held under operating leases to earn rentals or for
capital appreciation purposes are accounted for as investment properties. After initial recognition, the company
measures investment property at cost.

An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on
de recognition of the property (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in profit or loss in the period in which the property is derecognized.

Investment properties are depreciated in accordance to the class of asset that it belongs and the life of the asset
is as conceived for the same class of asset at the Company.

2.19 Earnings per share

A basic earnings per equity is computed by dividing the net profit attributable to the equity holders of the
company by the weighted average number of equity shares outstanding during the period. Diluted earnings per
equity share is computed by dividing the net profit attributable to the equity holders of the company by the
weighted average number of equity shares considered for deriving basic earnings per equity share and also the
weighted average number of equity shares that could have been issued upon conversion of all dilutive potential

equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any shares splits and bonus shares issues including for changes effected prior to the approval of
the financial statements by the Board of Directors.

2.20 Discontinued operations

A discontinued operation is a component of the Company's business that represents a separate line of business
that has been disposed off or is held for sale, or is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs upon the earlier of disposal or when the operation meets the
criteria to be classified as held for sale.

2.21 Financial instruments

i) Non-derivative financial instruments

Non-derivative financial instruments consist of:

• financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues, finance
lease receivables, employee and other advances, investments in equity and debt securities and eligible
current and non-current assets;

• Financial liabilities, which include long and short-term loans and borrowings, bank overdrafts, trade
payables, eligible current and non-current liabilities.

Financial assets and financial liabilities are offsetted and the net amount is presented in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities simultaneously.

Non derivative financial instruments are recognized initially at fair value plus in case of financial assets not
recorded at FVTPL, transaction cost attributable to the acquisition of financial asset. Financial assets are
derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In
cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor
retained, financial assets are derecognized only when the Company has not retained control over the financial
asset.

Subsequent to initial recognition, non-derivative financial instruments are measured as described below:

a) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents include cash in hand, at banks
and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and
are considered part of the Company's cash management system. In the statement of financial position,
bank overdrafts are presented under borrowings within current liabilities.

b) Investments in liquid mutual funds, equity securities (other than Subsidiaries, Joint Venture and
Associates) are valued at their fair value. These investments are measured at fair value and changes
therein, other than impairment losses, are recognized in other comprehensive income and presented
within equity, net of taxes. The impairment losses, if any, are reclassified from equity into statement of
income. When an available for sale financial asset is derecognized, the related cumulative gain or loss
recognised in equity is transferred to the statement of income.

c) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They are presented as current assets, except for those maturing later than
12 months after the reporting date which are presented as non-current assets. Loans and receivables are
initially recognized at fair value plus 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 and subsequently measured at amortized cost
using the effective interest method, less any impairment losses. Loans and receivables comprise trade
receivables, unbilled revenues and other assets.

The company estimates the un-collectability of accounts receivable by analysing historical payment
patterns, customer concentrations, customer credit-worthiness and current economic trends. If the
financial condition of a customer deteriorates, additional allowances may be required.

d) Trade and other payables

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost
using the effective interest method. For these financial instruments, the carrying amounts approximate
fair value due to the short term maturity of these instruments.

e) Investments in Subsidiary, Associates and Joint Venture

The company accounts investment in subsidiary, joint ventures and associates at cost
An entity controlled by the company is considered as a subsidiary of the company.

Investments in subsidiary company outside India are translated at the rate of exchange prevailing on the
date of acquisition.

Investments where the company has significant influence are classified as associates. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control over those policies.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement is classified as a joint venture. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant activities
require unanimous consent of the parties sharing control.
ii) Derivative financial instruments

The Company is exposed to foreign currency fluctuations on foreign currency assets, liabilities, net
investment in foreign operations and forecasted cash flows denominated in foreign currency.

The Company limits the effect of foreign exchange rate fluctuations by following established risk
management policies including the use of derivatives. The Company enters into derivative financial
instruments where the counter party is primarily a bank.

Derivatives are recognized and measured at fair value. Attributable transaction costs are recognized in
statement of income as cost.

Subsequent to initial recognition, derivative financial instruments are measured as described below:

a) Cash flow hedges

In respect of firm commitments and forecast transactions changes in the fair value of the derivative
hedging instrument designated as a cash flow hedge are recognized in other comprehensive income and
held in cash flow hedging reserve, net of taxes, a component of equity, to the extent that the hedge is
effective. To the extent that the hedge is ineffective, changes in fair value are recognized in the statement
of profit and loss and reported within foreign exchange gains/ (losses), net within results from operating
activities. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge
accounting is discontinued prospectively. The cumulative gain or loss previously recognized in the cash
flow hedging reserve is transferred to the statement of profit and loss upon the occurrence of the related
forecasted transaction. If the forecasted transaction is no longer expected to occur, such cumulative
balance is immediately recognized in the statement of profit and loss.

b) Others

Changes in fair value of foreign currency derivative instruments neither designated as cash flow hedges
nor hedges of net investment in foreign operations are recognized in the statement of income and
reported within foreign exchange gains/ (losses), net within results from operating activities.

Changes in fair value and gains/ (losses) on settlement of foreign currency derivative instruments relating
to borrowings, which have not been designated as hedges are recorded in finance expenses.

2.22 Segment Information

The Chairman and Managing Director (CMD) of the Company has been identified as the Chief Operating
Decision Maker (CODM) as defined by Ind AS-108, “Operating Segments.” The CMD of the Company
evaluates the segments based on their revenue growth and operating income.

The Company has identified its Operating Segments as Minerals, Precious Metals, Metals, Agro Products, Coal
& Hydrocarbon, Fertilizer and General T rade/others.

The Assets and liabilities used in the Company's business that are not identified to any of the operating
segments are shown as unallocable assets/liabilities. Management believes that it is currently not practicable
to provide segment disclosures relating to total assets and liabilities since the assets are used interchangeably
and hence a meaningful segregation of the available data is onerous.

2.23 Prior Period Errors

Errors of material amount relating to prior period(s) are disclosed by a note with nature of prior period errors,
amount of correction of each such prior period presented retrospectively, to the extent practicable along with
change in basic and diluted earnings per share. However, where retrospective restatement is not practicable for
a particular period then the circumstances that lead to the existence of that condition and the description of how
and from where the error is corrected are disclosed in Notes to Accounts. Taking into account the nature of
activities of the company, prior period errors are considered material if the items of income / expenditure
collectively (net) exceed 0.5% of administrative and establishment cost of the company.

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 R 33.80 crore in 2009-10 towards 26% equity in SICAL Iron Ore Terminal Limited
(SIOTL), a Joint Venture between MMTC Ltd. -26%, SICAL Logistic Ltd. (SLL) - 63% and L&T Infrastructure
Development Projects Ltd. (L&T IDPL) - 11% for the construction and operation of iron ore terminal at Kamaraja
Port Ltd (KPL) (erstwhile Ennore Port Trust), Tamil Nadu. The construction of terminal was completed by
November 2010. M/s SIOTL could not commence commercial operations due to non-availability of iron ore from
Bellary-Hospet Sector in Karnataka State and banning of mining / movement of iron ore for exports by the Govt.
In view of uncertain future of iron ore exports and to utilize the infrastructure created, Kamaraja Port Limited
(KPL) decided to award the facility for modification of the facility to handle common user coal. As coal did not
have synergy with MMTC's then existing line of business so in Sept'2016, MMTC Board decided to exit from the
JV.

MMTC invited bids through online tender for sale of its entire 26% equity in the SIOTL, however no response was
received. As per “Right of First Refusal” in Shareholders Agreement of SIOTL, SICAL Logistics Ltd; (SLL) (lead
promoter of SIOTL) offered to purchase MMTC's equity at reserve price fixed by MMTC which MMTC Board
decided to accept. Share Purchase Agreement was signed with Sical Logistics Ltd on 31.05.2018 for sale of
MMTC's equity in SIOTL and in terms of the agreement M/s SLL had deposited R 0.50 Cr (PY R 0.50 Cr) with
MMTC, Chennai towards performance of agreement. Time to time, the validity of the SPA was extended. Last
extension was valid till 31.03.2020. On account of financial crisis, M/s Sical Logistics could not pay the sale value
against SPA and therefore provision for R 33.80 crore were created by MMTC on 31.03.2020 towards diminution
in value of investment.

In the March 2021and in March 2022, corporate insolvency proceedings were initiated by NCLT against M/s SLL
and the JV Company M/s SIOTL respectively.

MMTC lodged its claim for R 34.26 crore with Corporate Insolvency Resolution Professional (CIRP) of SLL
towards unpaid share sale consideration based on the SPA and also with CIRP of SIOTL. MMTC had also taken
legal opinion of ASG in respect of the options available to recover its investment who opined that MMTC being a
shareholder, there are very little avenues of recovery available to MMTC at this stage considering both SLL and
SIOTL are under insolvency proceedings.

NCLT, vide it order dated 08.12.2022 has approved the resolution plan of SLL and the successful resolution
applicant has been appointed. Further NCLT vide its Order dated 23rd June'23 has decided to initiate the
liquidation process in respect of Sical Iron Ore Terminal Limited (SIOTL) and has accordingly appointed the
Liquidator for the same.

MMTC is pursuing with concerned authorities to recover its investment and has submitted the claim form under
FORM F to liquidator in the matter of SIOTL whose response is awaited.

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

Later on, due to erosion of Net worth of ICEX MMTC provided Fair value Adjustment of R 8.16 crore and R 7.84
crore in 2019-20 and 2021-22 respectively. Therefore, provision for full amount of R 16 Crore has been made
after such adjustment.

The shares of ICEX are not listed for trading 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 no interest was received.

ICEX Board of directors in its Board meeting held on February 14, 2023 had approved the voluntary surrender of
the License/Recognition of the Exchange to Regulator (SEBI) and to discontinue the Commodity derivatives
business, which was subsequently approved by the shareholders in the Extra Ordinary General Meeting
(Adjourned) held on 24.05.2023. Subsequently, SEBI vide order dated December 10, 2024 permitted the exit of
the ICEX as a stock exchange and thus the consequent withdrawal of recognition granted to ICEX.

Following the surrender of its recognition as a commodity exchange, ICEX vide Special Resolutions passed
through Postal Ballot on July 10, 2025, approved the alteration of its Memorandum and Articles of Association.
ICEX also approved a change in its name from 'Indian Commodity Exchange Limited' to 'Fusion Techstack
Limited' to pursue new business activities, particularly in the fields of technology, data services, and allied areas.

The said name change was duly approved by the Ministry of Corporate Affairs on September 09, 2025.

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

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 until the period of 3 years
from date of completion. 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 R 1067 crore. The period of 3 years has expired
on 04.07.2025 and until that date, no Liability has accrued.

An amount of R 774.95 crore (MMTC's share: R 411.76 crore), kept in an interest-bearing escrow account with
SBI, Bhubaneswar, matured on 04.07.2025. As the limitation period of three years concluded on the same date,
the amount available in the escrow account as on 04.07.2025 along with the accrued interest was distributed
among the promoters of NINL. Accordingly, MMTC received R 411.76 crore towards principal and R 25.75 crore
towards interest (net of TDS and bank charges) on 04.07.2025. The aforesaid sum of R 411.76 crore has been
booked as income for the year under exceptional items.

In view of expiry of limitation period of 3 years on 04.07.2025, nothing is payable/ receivable from NINL as on
date.

(ii) a) Includes R 13.21 crore towards value of 12503.700 gms of confiscated gold jewellery/dust/ solder etc

received from Customs Department on 19.01.2026 as per Hon'ble Supreme Court order dated 24.04.2025.
This pertains to a legal case filed by the company against supply of gold by MMTC to one of its associates for
export under Exim Policy during FY 1991-92. The same has been certified by the BIS approved hallmarking
centre and valued by the management based on rates published by Indian Bullion and Jewellers Association
(IBJA) as on 19 January 2026, considering certified quantity and purity. The valuation has not been carried
out by an independent registered valuer as company believes that valuation so determined of above gold
items based on certified purity and rates declared by IBJA is reasonable and appropriate.

b) Includes an additional provision of R 33.76 crore provided in respect of Anglo Coal case for the differential
amount against deposited in court and provision already made in books (Refer note 11 (I)).

c) Includes R Nil crore (P. Y R 4.51 crore) on account of Arbitration Award against the company.

* Refer note 31.

ia) Guarantees issued by Banks on behalf of the Company R 11.21 crore (P.Y. R 11.21 crore) in favour of
customer towards performance of contracts against which backup guarantees amounting to R Nil crore (P.Y. R Nil
crore) have been obtained from associate suppliers.

ii) Letters of Credit opened by the Company remaining outstanding R Nil crore (PY. R Nil crore).

iii) Corporate Guarantees of R Nil crore (P Y R Nil 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 R 2.18 crore
(P.Y. R 2.18 crore) on account of MMTC Employees Cooperative Canteen Society.

vii) Note No.34 i) a) includes an amount of R 14.19 crore (PY R 12.26 crore) reported by RO Mumbai in respect of LC
and matter is sub judice against claim raised by IndusInd Bank.

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 R Nil crore (PY R Nil crore).

Capital commitment in respect of investment in joint venture R Nil crore (PY R Nil crore).

36. General Disclosures :-

a) Following goods on account of Gold/Silver/Jewellery/Dust/Solder Held Against Litigation Settlement are held by
the Company under deposit and shown under other current assets (note no. 11 (B)) & (Refer note 32 (ii) a))

b) Nil kgs (PY Nil kgs) of un-refined Silver is lying in DRO as on 31.3.2026 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. An amount of R 774.95 crore (MMTC's share: R 411.76 crore), kept in an interest-bearing escrow account with
SBI, Bhubaneswar, matured on 04.07.2025. As the limitation period of three years concluded on the same
date, the amount available in the escrow account as on 04.07.2025 along with the accrued interest was
distributed among the promoters of NINL. Accordingly, MMTC received R 411.76 crore towards principal and
R 25.75 crore towards interest (net of TDS and bank charges) on 04.07.2025.

ii. 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 until the period of
3 years from date of completion. 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 R 1067 crore. The period of 3 years has
expired on 04.07.2025 and until that date, no Liability has accrued.

d) The Company has filed a recovery suit of R 31.40 crore against M/s AIPL in respect of Mint sale transaction
(PY R 31.40 crore) which included overdue interest of R 2.95 crore (PY R 2.95 crore) which has been decreed
in favour of the Company. MMTC Filed Execution petition and matter will be heard on 8.6.2026. The company
has written off the amount of R 28.45 crore in the year 2015-16 due to non-realisation of the same. M/s AIPL
have also filed a suit against Government Mint/MMTC for damages of R 167.20 crore (P.Y. R 167.20 crore)
which is not tenable as per legal opinion and is being contested. Beside this, the same has not been considered
as a contingent liability because the management is of the view that there is no present or possible liability on
the company in this case.

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. During 2025-26, the
company has received final approval/acceptance from Department of Consumer Affairs in respect of accounts
submitted related to Onion Import Scheme. Consequently, necessary accounting entries has been passed.

f) A claim for R 1.53 crore (PY R 1.53 crore) against an associate on account of damaged imported Polyester is
pending for which a provision of R 1.53 crore (PY R 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 Mumbai, during the year 2011-12, a foreign supplier has submitted forged shipping documents through
banking channels to obtain payment of R 4.13 crore (PY R 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. An
application has been filed before Hon'ble High Court of Punjab & Haryana and said application is under
admission stage. 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 R 8.60 crore (PY. R 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 R 3.75 crore (PY R 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
R 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 R 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 was lying in office vault has been shifted to SBI vault during the 2024-25. 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. The court has passed an order on 10.02.2025 in
favour of MMTC Limited and directed MBS Group to pay an amount of R 228.32 crore with interest @
13.25% from 30.09.2013 and litigation cost of R 11.90 crore. Also the said matter is under investigation
with CBI/ED as on date. Camp office has filed Execution Petition on 26.6.2025 and next date of hearing is
on 11.06.2026.

i) Hon'ble Delhi High Court has directed the Company to deposit R 39.62 Crore (PY R 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 (M/s VITOL SA) against the coal supplier (M/s Asian Natural
Resources India Limited (Formerly Bhatia International)). 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 07.07.2026.

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

k) 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. However, wind
mill business is still in 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 and the
accounts have been prepared on going concern basis.

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 31,2026 and March 31,2025, every 1% increase or decrease of the respective foreign currencies
compared to our functional currency would impact our profit before tax by approximately R NIL core and R NIL
crore, 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, 2026 and March 31, 2025, every 1% increase or decrease of the respective equity prices
would impact other component of equity by approximately R 0.94 crore and R 0.64 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

An analysis of age of trade receivables at each reporting date is summarized as follows:

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 consist 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 R 1.35 crore (P Y R 0.47 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 2025-26 towards the Gratuity Fund
Contribution is R 0.82 crore (P.Y. R 1.39 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. Encasement
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 R 8,500/- for each completed year of service is payable to the employees on
superannuation/voluntary retirement scheme.

(ii) Compassionate Gratuity

Compassionate Gratuity amounting to R 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 R 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 R 12,000/- on rendering service
of 20 years or more at the time of death.

(iv) Special Benefit to MICA Division employees amounting to R 5,00,000/- (Officer), R 4,00,000/- (Staff)
and R 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 T rusts 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 R 3.49 crore (PY R 3.99
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 recognised up to 2025-26. The company has also provided for PRMBS for open group @ 4.50% Baisc DA
for serving employees up to 2025-26.

b. The company has created PRMBS Trust for management of fund and paying to trust against company's liability
towards the 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) Contract Assets

Company recognized 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 R Nil crore (PY R 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 R Nil crore (PY R Nil Crore) in the revenue of R Nil crore (PY. R 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 R Nil crore (P Y R 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 fulfil 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 fulfil a contract with a customer and same is charged to profit and loss as a practical expedient.

1. Due to no borrowings.

2. Due to no purchase during the year.

3. Due to decrease in sale during the year.

4. Due to increase in interest income from fixed deposit/ dividend received.

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) 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

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. Whole time Directors are allowed usage of staff cars for private use up to 1,000 km per month on payment of
R 3500 per month in accordance with guidelines issued by Department of Public Enterprise (GOI).

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

53. 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 R in
crore. Previous year's figures have been regrouped/rearranged wherever considered necessary.
Regrouping/rearrangement of data is for specific purpose of presentation in financial statements only and do
not affect legal status of MMTC. MMTC reserves all its rights under the applicable laws.