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
estjmate can bo made of the amount of the obligation.
2.14 Contingent Liabilities I 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 detennine 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 iiabiiity. The entity recognises a provision for the part ol 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 II It's virtually
certain that inflow of economic benefits will arise then such assets and the relative income will be recognised in
tine financial statements.
2.15 Looses
An asset held under lease is classified as a linance lease it 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 II 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
(il) Where the company :s lessee, at commencement date nght to use of assets are recognized at cost and
the present value of lease payments that are not paid recognized as lease liability. Subsequently, nght of
use assets measured by using cost model with any adjustment required for ro-measurement of lease
liability and lease liab-lity is measured by increasing the carrying amount to reflect the interest on ieaso
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.
(ill) As a practical expedient. short term leases and leases for which the underlying assets is ol low value uplo
? 1,00,000/-per month or? I2,00.000/-per year are not recognized as per the provisions given underlnd
AS-116 (Leases) and are recognized as an expense on a straight line basis over the lease term.
2.16 Employee bonofits
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
tne basis of actuarial valuation using the projected unit credit method. Re-measurement, compnsing
actuanai gains and losses, the effect of the changes to the ssset ceiling (if applicable) and the return on
plan assets (excluding interest), is reflected immediately in tho 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 incomo is reflected immediately in retained earnings
and will not be reclassified to Statement of Profit or Lossand 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 lor post-reliremenl medical benefit Is made on defined contribution basis.
iii Provident fund contribution is made toProvident FundTrust 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 conlnbuhon 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 recotded as expense
as the related service is provided. A liability :s 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
Incomo tax expense represents the sum of the tax currently payable and dofonred tax
Current tax
The tax cuitently 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/stalement 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 lax 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 goneraliy recognized for all taxable temporary differences. Doforred t3x assets are generally
recognized for all deductible temporary differences to the extent that It 16 probable that taxable profits will be
available against which those deductible temporary differences can bo 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 tire
foreseeable future Deferred tax assets arising from deductible ternpoiary differences associated with such
investments and Interests are only recognized to the extent dial 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 die end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will bo available to allow all or part of the asset to
be recovered
Deferred tax liabilities and assets are measured at the lax rates that are expected to apply in the period in which
the liability re settled or the asset realised, based on tax rates (ana tax laws) that have been enacted or
substantively enacted by the end of the reporting period
Current and deferred tax for ine year
Current and deferred tax are recognized in profit or loss, except when they relate lo 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 anses from
the Initial accounting for a business combination, the lax 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 whilo determining taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax
rales, -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 comparotives.
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 coots. Ail 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 properly 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 m profit or loss in the penod in which the property is derecognized
Investment properties are depreciated in accordance to ttie class of asset that it belongs and the life of the asset
is as conceived for the same class of asset al the Company
2.19 Earnings per share
A basic eammgs per equity is computed by dividing the nel profit attributable lo the equity holders of the
company by the weighted average numbef of equity shares outstanding during the period. Diluted earnings pei
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 tire proceeds receivable had the equity
shares been actually issued at fair value (ie. 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
Tire 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 1$ a component ol (he Company's business that represents a separate line ol 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 bo classified as field lor salo.
2.21 Financial instruments
i) Non-denvative financial instruments
Non-denvative 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 secuntles and eligible
current and non-curront assets:
. Financial liabilities, which Include long and short-lerm 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 9heet if
there is a cunontly enforceable legal right to offset the recognised amounts and thorp >s an intention to sottlo on a
net basis, to realise the assets and settle the l-nbilctios simultaneously.
Non donvative financial instruments are recognized initially at fair value plus in case of financial assets not
recordod 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 fias not retained control ovor tho financial
asset.
Subsequent to Initial recognition, non-derivative financial Instruments are moasured 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 tl\e Company’s cash management system. In tho statement of financial position,
bank overdrafts are presented under borrowings within current liabilities.
b) Investments in liquid mutual funds, equity securities (other than Subsidianes, 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 r&dassffted from equity Into statement of
income When an available for sale financial asset is derecognized, the related cumulative gam or loss
recognised in equity is transferred to I he statement of Income.
c) Loans and receivables
Loans and receivables are norv-derlvative 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 lhan
12 months after the reporting dale which are presented as non-curront 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 pnee and subsequently measured at amortized cost
using Ihe effective Interest method, less any Impairment losses Loans and receivables comprise trade
receivables, unhilled 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 Ihe
financial condition of a customer deteriorates, additional allowances may be required
d) Trade and other payables
Trade and olher payables are Initially recognized at fair value, and subsequently earned 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 33 a subsidiary of the company.
Investments in subsidiary company outside India are translated at the rate of exchange prevailing on Ihe
dale of acquisition
Investments whew the company has significant Influence are classified 8S associates. Significant
influence Is the power to participate in the financial and operating policy decisions of the investee but Is
not control or joinl control over those policies.
A joint arrangement whereby the parties that have joint control ol the arrangement have rights to the net
assets of the joint arrangement is classified as a Joint venture Joinl 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 forotgn currency fluctuations on foreign currency assets, liabilities, net
investment in foreign operabons and forecasted cash flows denominated in foreign currency.
Tiie Company limits the effect of foreign exchange rale fluctuations by following established risk
management policies including the use of derivatives. The Company enters into derivative financial
Instruments where the counterparty Is primarily a bank
Derivatives are recognized and measured at fair value Attnbutable transaction costs are recognized in
statement of income as cost
Subsequent to Initial recognition, derivative financial Instruments are measured as desenbed 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 Ihe 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 lo 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 not 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 instniments relating
to borrowings, which have not been designated as hedges are recorded in finance expenses
222 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, Agra Products, Coal
& Hydrocarbon. Fertilizer and General Trade/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/llabililies. Management believes that it is currently not practicable to
provide segment disclosures relating lo 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 rotating to pnor period(s) are disclosed by a note with nature of poor ponod errors
amount of correction of each such prior period presented retrospectively, to the extent practicable along with
change in basic and diluted earnings per sharo. However, where retrospective restatement is not practicable for
a particular period thon 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 Hems of income / expenditure
collectively (net) exceed 0.5% of sales turnover of the company
i All Non-Current Investments in Equity Instruments of Subsidiaries and Joint Ventures are carriea at cost less
Impainnent in value cf investment, if any. Tho Investment in Equity Instalments of others are earned at Fair Value
If. The Company had invested ? 33.80 crore in 2009-10 towards 26% equity in SICAL Iron Ore Terminal Limited
(SIOTL). a Joint Venture bohvoen 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 Kama raja
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-Hospe? Sector in Karnataka State and banning of mining / movement of iron ore lor exports by the Govt. In
view ol uncertain future of iron ore exports and to utilize the infrastructure created. Kamaraja Pori 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 por "Right of First Refusal* in Shareholders Agreement of SIOTL, SICAL Logistics Ltd; (SLL) (lead
promoter of SIOTL) offered fo purchase MMTC’s equity at reserve price fixed by MMTC which MMTC Board
decided to accept. Share Purchase Agreement was signed with Slcal 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 ? 0.50 Cr (PY ? 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 Slcal Logistics could not pay the sale value
against SPA and therefore provision for ? 33 80 crore was 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 ? 34.26 crores 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 10 recover Its Investment who opined that MMTC being a
shareholder, there are very littfe avenues of recovery available to MMTC at this stage considenng 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 Ihe
liquidation process in respect ol Sical Iron Ore Terminal Limited (SIOTL) and has accordingly appointed Ihe
Liquidator for the same.
MMTC Is pursuing -with concerned authorities lo recover its investment and has submitted the claim form under
FORM Gto liquidator in the matter of SIOTL whose response is awaited,
iii. MMTC had Invested ? 26 crores (5.20 crores equity share of ? 5 Face value) during 2009-10 In ICEX ICEX Initial
equity capital was? 100 crores that was later on Increased lo ? 266.75 crores However later on MMTC divested 2
croros share10 per share in 20*5-16. Alter this divestment MMTC’s shareholding reduced to ? 16 crores (?
3.20 crores share @ ? 5 Face value) which is 6% ol Ihe total share capital of? 266.75 crores.
Later on. due to erosion of Net worth of ICEX MMTC providod Fair value Adjustment of ? 3.16 crores and ? 7.84
crores in 2019-20 and 2021-22 respectively. Therefore, provision (or full amount of ? 16 Crores has been made
after such adjustment.
The shares of ICEX are not listed for trading on any stock exchange MMTC thed to sell Its equity in ICEX in FY
2017-18 and again from FY 2019-2C to 2021 -22. but no interest was received
ICEX Board of directors iri its Board meeting held on February 14,2023 had approved the voluntary surrender of
the Llcense/Recogmtlon 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. Further
developments awaited.
b) NO kg* |PY. Nil kgs) of un-rotlmvJ Silver Is lying In DRO no on 31.3 2025 on behalf of Shn Mata VeehflO Dart Shnno
Board
c) Nomacnol tspnt Mgam Ltd (NINL)-Joint Y'onluro company divostmcnt hatjbeen completed on 4,72022.
i. An amount of 7 774.94 croro (Mf.fTC Share 7 411 75 aoro) m Mill In an interest bearing Escrow account with 5BI,
Bhubaneswar.
il As per tlie clause of Stiare Purchase Agreement (SPA) for divestment of NINL any unforeseen liability on NINL post
divestment shaM be borne by Seller.’ Promoters as tier tire warranty clause of SPA and tire aggregate liability of the
Seilers and Promoter* cannot exceed 20% of the amount received by the se'Sers from Bid amount by way of sale
consideration and discharge of trie r respective Seller Debt MMTC* maximum liability In Uns regard if any. works orrt to
71067awe subject to completion due process.
d) The Comoany has fllod a recovery suit of? 31.40 croro against M/s AIPL In respect of Mint sals transactor! (P.Y. ? 31.40
crore; which included overdue mtoresl of 7 2.95 croro (P.Y. 7 2 95 croro) which has been docrood in favour of the
Company. MMTC Filed Execution petition and matter will be heard on 18 62025. The company has written off the
amount of 7 28 45 croro In the year 2015-16 due to non-roailsation of tno same M/s AIPL have atso filed a suit against
Government Mlnt/MMTC for damages of 7167.20 croro (P, Y. 7 167.20 croro) whlfih Is not tenable as per legal opinion
and is be>ng contested Beside this, the same has not been considered as a contingent liability because ttie
management Is of the view that them is no present or possible iiabll.ty on the company In tins case
a) Under Price Stabifczabon Scheme of Lno Government of I ndm to create Burtcr Stock ot onion MMTC imported onion from
July 2019 onwards until 31.03.2020. As por the schomo VMTC”* trading margin has boon fUod at 1 5% on C&F cost at
the timo of sale and all oxponees related to the import ehail bo to the account of Govt. Tno difforenco between the sale
realisation and cost incurred Including MMTC* margin has boon shown as claim receivables trom Govt, which will be
adjusted with the advance received from Govt Cos! Cell of Department of Consumer Affairs has provisionally vetted
onion accounts during the F Y 2024-25 however final report yet to he received
0 A claim ter? 1.53 croro (P Y. 71 53 croro j agnlnst an associate on account of damaged imported Polyester .$ pending for
v/tiich a provision of 7 1.53 crore (P.Y, 7 1.53 crore) exists In the accounts after taking into account the FMD and other
payables The company has requested customs for abandonment which Is pending for adjudication. A cnmlnal 4 civil suit
has been filed again si the Associate
qj At Mumbai, dunng the year 2011-12. a foreign supplier has submitted forged shipping documents through banking
channels to obtain paymont of 7 4 13croro(PY 7 4.13 croro) without making delivery of tho mntorml (copper) Howevor.
fhe company has obtained an Interim stay restraining the bank from making the payment under Hie teller of credit which
was vacated and Indian bank had !o make payment to the forego bank . Ar. application has been filed before Hontle Hign
Court of Punjab A Haryana and saxl application a under admission stage The same supplier is also fraudulently lialding
on to the master bills of lading of another shipment ol copper which would enable the Regional Office Mumbai to take
delivery and possession of goods valued at? 8.60 croro |PY 78 60 croro), already pa.0 for and after adjustment ofEMDA
payables provision for thebaianco amount has been made during the year 2014-15
h; At RO Hyderabad
(I) Fake otHs of lading covering two shipments of copper valued at 7 3 75 croro (P Y 7 3.75 croro) were received during
2011 -12 through banking channels against which no material was received The foreign suppbor has boon paid tn
full through letter of credit nftet tho company received full onymont from its Indian cuotomor Tho company has
initiated legal action against tho foreign supplier The amount of 7 4 44 croro for this transacoon received in full and
final settlement from the local buyer which includes m Advnnce received from aiafomer under other non-current
liabflitlea.
(ii) Trade receivable from MBS Group of 7 226.82 crore 3gainst witch 100% provision has already boon made In this
matter Studded Jewellery copoBitod by MBS Group during 2012-13 with RO Hydoraoao and was tying in office vault
has been shifted to SBl vault during the 2024-25. This is tho prime legal matter ponding before tho various
courts/f arums 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 M BS Group to pay
on amount of 7 228 32 crore with interest @ 13.25% from 30.09.2013 Also the said matter is under Investigation with
CBIFDhs on dale. As the llm lation period Is not over for further appeal by the other parly, thin was not affected In the
books of accounts
0 Hon bio Doth! High Court has directed tno Company to deposit 7 39.62 Croro (PY 7 39.62 Cr.) stated to bo recorvnWo by
one of the Company's coal suppliers as per their oooks of accounts from MMTC in a case relating to execution of decree
Bed by a foreign party against the coal supplier. MMTC has filed application and courier affidavit stating that fhe
supplier'll contractual obligations are yet to be discharged and MMTC is unahte to deposit any amount nt this stage Any
amount found payable to the supplier after resolution of all Issues the same will be deposited with tho court Instead of
releasing »o the supplier without any l ability on MMTC The bearings are in progress and next date of hearing is
14 07.2025.
j) FCI in March 2019 opproachod MOC4A. FAPD for Inlliotion of Administrative Mechanism for Resolution of CPSEs
Disputes (AMRCD) proceedings against MMTC for an amount of 7 62.18 ctores including interest os MMTC had
deducted an amount of 7 60 99 crores from FCI's payment in May 2014 Out of this provision of an Bmount of * 1 13 cr ore
has boon made on 31.03.2022 For Ihn balance amount of? 91.05 crore contingent liability provided MMTC expla-ned Its
position that an amount of ? 60.99 crore was deducted from wheal exports In 2014 to recover MMTC'a duns from FCi
arising from multiole transactions since 1991 onwards Tho matter was admitted for resolution under AMRCD.
As per the decision of Committee of Secretaries in AMRCD an amount of 7 45.21 crore was paid to FCI on 24.06.2024 in
respect of FCI's claim against MMTC o connection wilh wheat export from Central Pool Stocks dunng 2012-14
k) The company has taken decision to replace the existing ERP Package with TALLY prime package w.e.f 01.04 2023
l) As per trie duecfiori of administrative ministry for closure of offices/downsizwig o' business company has introduced VRS
dunng 2024-25 with the eligibility criteria covering nil employees In staff cadre and management cadre Irrespective of
lengih of services 13 omployens have boon relieved till .V 03.2025 and Employee's Benefit Expons®* Includes 7 7.94
crore as VRS Expanses
mi MMTC has been direcied by administrative ministry to oreparo a road map for scaling down of manpower including exit
from various JVs. Also dlrodlon have been given for ent from business operation However, wind mill business Is 'till In
operation. Government is yet to docide the exit route for MMTC. As thoro Is no commuikatiori from Ministry for closure
ole . status quo of going concorn Is bei ng maintained and tho accounLs have boon prepared on going concern bonis.
37.2 Fair Valuo Hierarchy
• Level 1 - Level I nierar chy includes financial instruments measured using quoted prices (unadjusted) in active martlets
• Lovel 2 - Level 2 hierarchy Includes finsinoiil Instruments measured using inputs other than quoted prices Included
within Level l that are observable (or the asset or liability, either directly (i.e as prices) or Indirectly (l.e denved from
prices)
• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that nro not b*sod on observable
market data (unobservable inputs).
37.3 Financial risk management, objectives and policies
The company’s activities expose It to the following financial risks
- market risk
-credit risk and
- liquidity m>k
The company has not arranged funds that have any Interest r3to risk
a) Market risk
(i) Foreign Exchango Risk
The company has import and export transactions and honce has foreign oxchonge nsk pnmanty with ro$poci to the
US$ The company hag not arranged Iund9 through long term borrowings The short term foreign currency loans
(buyer's credil) availed from banks are fixed interest rate borrowings As a result, the company does not have any
interest rute risk. The company's risk management policy is to use Hedging instnmients to hedge the risk of foreign
exchange.
The company uses foreign exchange forward contracts to hedge Its exposure In foreign currency risk. Thu company
designates the spot element of forward contracts with reference to relevant spot market exchange rate The difference
between the contracted forward and the spot market exchange rate is treated as the forward element. The changes in
the spot exchange rate of hedging Instrument that relate to th6 hedged Item is deferred in the cash How hedge reserve
and recognized against the related hedged transaction when it occurs The forward dement of forward exchange
contract is doferred in cost of hedging reserve and is recognized to the extent of change in forward element when tho
transaction occurs.
Tho following tables show tho summary of quantitative data about the company's exposure to foreign currency n9k
from financial instruments expressed m
Sensitivity:
As of March 31. 2025 and March 31. 2024. every 1% increase or docrease of the respective foreign currencies
compared to our functional currency would impact our profit before tax by approximately X NIL core and X NIL crare,
respectively
(i) Price Risk
The company's exposure to equity securities price nsk arises from investments held by the company and classified in
balance shoot os at fair value through other comprenensivo incomo Out of tho tyre socuritios held by the company, one
Is listed In NSE and the other (ICEX) is not listed.
As ol March 31,2025 and March 31.2024. every 1 % Increase or decrease of the respective equity prices would impact
other component of equity by approximately X 0.64 crore and X 0.29 crore, respectively. It has no impact on profit or
loss
b) Credit Risk
Credit nsk refers to the risk of default on its obligation by a counterparty resulting In a financial loss. The maximum
exposure to the credit risk at tho reporting date is primarily from trade recoivables. Accordingly, credit nsk from trade
receivables has been separately evaluated from all other financial assets In the following paragraphs.
Trade Rocakabtes
The company's outstanding trade receivables are mostly secured through letter of crediPBG except In respect of JV'8
and Govtoflndia
Impairment on trade receivables is rocogneoo based on expected credit loss in accordance with provisions of led AS
109. The company's historical oxpenonce for customers, present economic condition and present performance of the
customers, future outlook for the industry etc are taken into account for the purposes of expected credit loss
Trade- receivables ore generally considered credit impaired when overdue tor more than three yog's {except government
dues), unless the amount is considered receivaole, when recoverability Is considered doubtful based on the recovery
analysis performed by the company for individual trade receivables. The company considers that ell the above financial
assets that are not im paired though overdue arc 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 pastdue
Other financial a&sots
Credit risk relating to cash and cash equivalents s considered negligible because our counterparties are banks. We
consider tho credit quality ot lorm deposits with scheduled banks which ore subject to the regulatory oversight of the Reserve
Bank of India to be good, and wo 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 wilh surety bonds of other sewing employees There are no impairment provisions as at each
reporting date against these financial assets We consider all the above financial assels as al the reporting dales to be af
good credit quality,
a) Liquidity Risk
Our liquidity needs are monitored on the basis ol monthly and yearly projections. The company's principal sources of
liquidity are cash and cash equivalents, cash generated from operations and availability of runding through an adequate
amount of committed credit facilities to meet obligations when due
Due to the dynamic, nature ol underlying businesses, the company maintains flexibility In funding by maintaining
availability under committed credit lines
Short term liquidity requirements consist mainly of sundry creoilors. expense payable, employee dues arising during the
normal course of business as of oach reporting dato. The company arrangos credit from bank and maintains balance in
cash and cash equivalents to meet shod term liquidity requirements.
The company assesses long term liquidity requirements on a period cal basis and manages them through internal
accruals and committed credit lines
The table bo low provides details regarding the contractual maturities of non-dertvattve financial liabilities. The table has
bean drawn up based on tha undisclosed cash flows of financial liabilities based on the eafflost dat8 on which the
company can be required lo pay The table includes both principal & interest cash Hows.
39. Disclosure in nrapoct of Indian Accounting Standard (Ind AS)-36 "Inipalrrnont of assets”
Dunng the year, the company assessed the impairment loss of assets and accordingly provision towards impairment in
the value of PPE amounting to * 0.47 crore (P.Y ? 0 08 crore) has been made dunng the year.
40. Disclosure in rospect of Indian Accounting Standard (Ind AS)-19 “Employoo Benefits*
40.1 General description of various employee's benefits schornes are as undor;
a) Gratuity:
Gratuity is paid to all employees on retirement/soparation based on tho number of yoars of service Tne scheme is
funded by the Company and Is managed by a separate Trust through LIC. In case of MICA division employees the
scheme * managod directly by the company through LIC. The scheme is funded by tho company and the liability is
recognizod on Hie basis of conlnbution payable to tho insurer, i.e. tho Life Insurance Corporation of Indio, 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 2024-25 towards the Gratuity Fund Contnbution Is ?
1.39 crore (P.Y. 1.69 crore). However. Ihe company is making contribution lo the fund as per the demand made by Life
Insurance Corporation of India
b) Leave Compensation:
Payable on separation to eligible employees who have accumulated earned and half pay leave Encashment of
accumulated earned leave Is also allowed during service leaving a minimum balance of 15 days twice in a year
Tho liability on this account is recognizod on the basis of actuarial valuation.
c) Long Sorvico Bonofits: Long Service Benefits payable to tho employees are as under
(I) Sorvico Award:
Service Award amounting to * 8,500/- for each completed year of sorvico Is payable to the employees on
suporannuation/voluntary retirement scheme
(II) Compasslonato Gratuity
Compassionate Gratuity amounting to 7 50,000/- Is payable in lump-sum to Ihe dependants of the employee on
death while in service
(III) Employees’ Family Benofit Scheme
Payments under Employees' Family Benefit Scheme Is payable lo 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 T 12.000/- on rendering service of less than 20 years and similarly a monthly benefit @ 50% of Basic
Pay 4 DA last drawn sublet to maximum T12.000/- on rendenng service of 20 years or more at the time of death
(Iv)Spccial Benefit to MICA Division omployoos amounting to t 5.00.000/- (Cfficer), ? 4.D0.00Q/- (Staff) ana
? 3.00.000/- (Worker) upon retirement
The summarized position of various defined benefits recognizer! In live Statement of Profit & Loss, Other
Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under:
d) Provident Fund: The Company's contribution pald/payablo during the year to Provident Fund and tho liability K
recognized on accrual basis. Tho Company's Provident Fund Trust Is exempted under Section 17 of Employees
Provident Fund and Miscellaneous Provisions Ad. 1952 The conditions for grant of exemptions stipulate that the
employer shall make good deficiency, if any, in the interest rate declared by the Trusts vte-a-vis statutory rate The
compony does not onUdpoto any further oblations in tho near foro&oeablo future- having regard to the assots of tho
funds and return on investmonl.
o) Superannuation Ponslon Benefit Dunng tha ycar. tho Company has recognized ? 3.99 crore (P.Y. ? 3.83 croro)
towards Defined Contribution Superannuation Pension Scheme In tho Statement of Profits Loss
f) Post-Retirement Medical Benefit: Available lo retired employees at empanelled hospitals for inpatient treatment and
also for OPD treatment under Defined Contnbution Scheme'as under,
a Tne liability @ 1 50% of PBT for the year in respect of scheme for retirees prior to 1 1 2007 (closed group) has !>een
recognised up to 2024-25 7|>e company has also provided for PRMBS for open group @ 4.50% Baisc^DA for serving
employees up to 2024 -25.
b The company has created PRMBS Tn;st 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 boon presented for each business segment Tho
accounting principles used in the preparation of the financial statements are consistently applied to record revenue and
expenditure In individual business segments, and ate as set out In the significant accounting policies Business
segments of the company are:-Preaous Metals. Metals. Minerals. Coal & Hydrocarbon. Agro Products Fertilizer and
Others
Segment Rcvonuo and Expenso
Details regarding rcvonuo and oxponses attributable to each segment must bo disclosed
Segment assets include all operating assets in respective segments comprising of net fixed assets and currant assets, loans
and advances etc Assets relating lo corporate and construction are included in unallocated segments. Segment (labilities
include liabilities and provisions directly attributable to respective segment.
Ounng the year company hsa recognized revenue af * Nil croto (P.Y. ? Nil crore) from the performance obligations
satisfied in earlier periods by raising debit/credll notes to its customers.
fho company has mode the ad|UBtment of ? Nil croro (P.Y ? Nil Croro; in the revenue of ? Nil crore (P.Y ? Nil crore)
recognized during the year on account of discounts, rebates, refunds, credits, pnce concessions, Incentives
performance bonuses etc. as against the contracted revenue of ? Nil crore (PY. ? 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 loss than one year
or right to receive the consideration established on completion of the performance by the company.
B. Significant Judgements In tho application of this standard
(I) Revenue is recognized by the company when tho company sotisfies a performance obligation by trnnsfemng 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/sorvices.
(ii) The company considers the terms of the contract and its customary business practices to determine the
transaction price. Tho transaction pries is the amount of consideration to which an entity expects to be on titled in
exchange for transferring promised goods or services io a customer, excluding amounts collected on behalf of third
parties (for example. GST etc ).
(Ifi) The consideration promised In a contract with a customer may Include fixed amounts vnnabte amounts, or both
Any further adjustment will be made by raising debil/credit notes ori the customer While determining the
transaction price effects of variable consideration, constraining estimates of variable consideration, the existence
of a significant financing component In the contract, non-cash consideration and consideration payable to a
customer is also considered
(iv) Certain adjustments have been made during the year in contract value which is not significant Keeping in view the
amount involved.
C. Assets Recognised from costs to obtain or fulfill a contact with a customer
Bemg a trading company, costs incurred by the company aro fixed in nature with no significant incremental cost to
obtain or fulfill a contract with a customer and same is charged to profil and loss as a practical expedient
d) The Company have no! traded or Invested in Crypto currency or Virtual Currency during Iho financial year
e) The Company have not advanced or loaned or invested funds to any other persons) or entlty(ies), including foreign
entities (Intermediaries) with tho 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
oflhe company (Ultimate Beneficiaries!or
• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficianes.
f) The Company have not received any fund from any porBon(s) or ent!ty(los). Including foreign entitles (Funding
Party) with the understanding (whether recorded In writing or otherwise) that the Company shall .
• -Directly or Indirectly tend 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 ortho Itko on behalf of the Ultimate Beneficiaries
g) The Company do not have any transaction Which -a not recorded in the books of accounts that has boon surrendered
or disclosed as income during the year in Hie tax assessments under the Income Tax Act 1961 (such as. search or
survey or any other relevant provisions of the Income Tax Act. 1961
n) The company in not in contravention with the numberof layers pnesenbed under section 2{87)of the Act
I) Tho 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 arid 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 atfoding tho current year's financial statements.
In the opinion of Die management, the assets other than property plant and equipment, intangible assets and non-
current Investments are expected to realize at Hie 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 Z 2000
per month In accordance with guidelines issued by Department of Public Enterprise (GOI).
52. Accounting policies and notes attached form an integral pari of the financial statements.
53 Amount in Hie 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 ofl In ? In crore.
Previous year's figures have been regrouped/rearranged wherever considered necessary
Regiouping/rearrangement of data is for specific purpose of presentation m financial statements only and do not
affect legal status ot MMTC. MMTCreserves all its rights under the applicable laws.
54. Approval of financial statements
Tho financial statements were approved by tho board of directors and authorised for issue on 28.05.2025
As per our report of even date attached
For and on behalf of Board of Directors
For D-.fMth Jain £ Associates
Ctartartd Accountant*
F.R No • 004635*
jCA. Melts Jain) |Aj*y Kumar Mivra) (B.D.Oa*) (Koptl Kumar Gupta)
Partner Cornpa»\y Scenery Deputy Gcrera! Manege* (FiA) Dw.tM (Fj A CFO
M. No 514775 ACS-1149$ DIN 0875M37
.oim xi jii (JfUvISh*nA#f) (Nlim Kumar Yadav)
22L *. 2522 <***' CWO (Additional Ctttig*)
Placa nn< DiM DIN’ 05961405 DIN; 031C4IU6
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