54 - MMTC Limited: MMTC Limited

1 2 BRING NEW AVENUES INGLOBAL TRADE BRING NEW AVENUES INGLOBAL TRADE 54 th2016 - 2017 ANNUAL REPORTS ustaining Excellence While JourneyingTowards Global HeightsAs a leading trading company of india , MMTC takes pride in the growth avenues it has carved for itself and the country on the global front. In its designated role of a Four Star Export House , MMTC acts as a bridge for the Nation; sourcing what has been in short supply for india s industry while exporting its surplus to ful ll other countries growing needs. With its global reach and resources, the Company has thus paved a path for itself as an international exporter and importer engaged in the pursuit of growth and excellence. MMTC s Annual Report 2016-17 is aptly based on its endeavours towards Sustaining Excellence while journeyingtowards global NEW AVENUES INGLOBAL TRADE BRING NEW AVENUES INGLOBAL TRADE 54 th2016 - 2017 ANNUAL REPORTS ustaining Excellence While JourneyingTowards Global HeightsAs a leading trading company of india , MMTC takes pride in the growth avenues it has carved for itself and the country on the global front.

2 In its designated role of a Four Star Export House , MMTC acts as a bridge for the Nation; sourcing what has been in short supply for india s industry while exporting its surplus to ful ll other countries growing needs. With its global reach and resources, the Company has thus paved a path for itself as an international exporter and importer engaged in the pursuit of growth and excellence. MMTC s Annual Report 2016-17 is aptly based on its endeavours towards Sustaining Excellence while journeyingtowards global NEW AVENUES INGLOBAL TRADE BRING NEW AVENUES INGLOBAL TRADE 54 th2016 - 2017 ANNUAL REPORTS ustaining Excellence While JourneyingTowards Global HeightsAs a leading trading company of india , MMTC takes pride in the growth avenues it has carved for itself and the country on the global front.

3 In its designated role of a Four Star Export House , MMTC acts as a bridge for the Nation; sourcing what has been in short supply for india s industry while exporting its surplus to ful ll other countries growing needs. With its global reach and resources, the Company has thus paved a path for itself as an international exporter and importer engaged in the pursuit of growth and excellence. MMTC s Annual Report 2016-17 is aptly based on its endeavours towards Sustaining Excellence while journeyingtowards global Mission 2 Corporate Objective/ Major Achievments 3 Performance at Glance 4 Chairman s Statement 5 Board of Directors 8 Director s Report 10 Management Discussion and Analysis Report 21 Report on CSR Activities 27 Report on corporate Governance 31 MMTC Business Responsibility Report 41 Auditor s Report 56 Statutory Auditor s Report and Management Reply thereon 65 Comments of C & A G of india 69 Decade at a Glance 73 Financial Statement of MMTC Limited 97 Transnational PTE Ltd.

4 Singapore 163 Consolidated Financial Statements 183 MMTC Auditors 263 MMTC Bankers 264 MMTC Offices 2652 Corporate MissionAs the largest trading company of india and a major trading company of Asia, MMTC aims at improving its position further by achieving sustainable and viable growth rate through excellence in all its activities, generating optimum profits through total satisfaction of shareholders, customers, suppliers, employees and of MoU between MMTC and MoC32 Corporate Objectives To be a leading International Trading House in india operating in the competitive global trading environment, with focus on bulk as core competency and to improve returns on capital employed.

5 To retain the position of single largest trader in the country for product lines like minerals, metals and precious metals. To render high quality of service to all categories of customers with professionalism and efficiency. To provide support services to the medium and small scale sectors. To streamline system within the company for settlement of commercial disputes. To promote development of trade-related Achievements Tied up with 7 banks to sell india Gold Coin, india s first Sovereign Gold Coin through its 400 branches to make easy availability of the coins across india . Phase 1 of Kandla FTWZ (Free Trade Warehousing Zone) has been made operational during the year 2016-17, a Joint Venture project between MMTC and IL&FS Ltd.

6 Signing of mining lease agreement with Govt. of Odisha for allocation of captive mines for NINL. Renewed 3 years LTA (Long Term Agreement ) with Japanese and Korean Steel Mills for exports of high grade iron at Glance(` in million)For the financial year ending 31st March201720162015 Total Sales115934124604182415which includes- Exports15802672623007 Imports84802102958145302 Domestic153301492014106 Trading Profit219912972079 Income from Other Sources148821791949 Profit After Tax 570 549479At Year EndTotal Assets607833800359509 Net Worth143411377913592 Per Share (Rupees)Earnings Worth to Share Capital (times) after Tax to Capital Employed (%) after Tax to Net Worth (%) per Employee (Rs. Million) S STATEMENTDear Shareholders,It is my privilege to welcome you on the occasion of the 54thAnnual General Meeting of your , on this very day 54 years back your Company got incorporated.

7 In this splendid journey of 54 years your company has seen many transformations in its operations to remain one of the largest international trading companies of DURiNG 2016-17 Global economic environment in the first part of the year remained challenging and a modest recovery was seen in the second half of the year. Inspite of such grim international business scenario, I am happy to inform you that your company s net profit has shown incremental growth over the last 3 years and the Board of your company has recommended dividend of 30% for 2016-17 also. However, your company recorded a business turnover of ,15,934 million during 2016-17 as against business turnover of Rs. 1,24,605 million achieved during 2015-16.

8 This business turnover includes Exports of million, Imports of Rs. 84803 million and domestic trade of Rs. 15330 million. The decline in turnover is due to various factors like fall in average prices of commodities due to global recession and non-import of steam coal for Government Power Plants due to increased domestic supplies by Coal india , continuing ban on iron ore mining and the resultant lower exports etc. Your Company earned a trading profit of million as compared to Rs. 1965 million in 2015-16. The profit before tax from ordinary activities is million as compared to million in 2015-16. The Company has registered a net Profit of million during the year as compared to Rs. 549 million earned last year.

9 Thus the earnings per share of face value of each is Re. as on Besides, MMTC continues to be a zero long-term debt company imported Pulses on Government account in the crisis period faced by the country which has helped to stabilize prices for consumers. Your company has opened an office in Guwahati to cater to the trading needs of North East Region of the country. Your company has tied up with 7 banks to sell india Gold Coins through about 400 branches to make easy availability of the coins across india . The phase 1 of Kandla FTWZ has been made operational during the year, a JV project between MMTC and ILFS Ltd. Your company has renewed 3 years Long Term Agreement with Japanese and Korean Steel Mills for export of High Grade Iron Ore.

10 During the year, your company has received many accolades for its business performance in different sectors which included the CAPEXIL s most coveted Award for total minerals exports consecutively for 24th time in a row and Star Performer Award for 2014-15 in Basic Iron & Steel (Large Enterprise) by EEPC, COMPANYD uring the financial year 2016-17, MTPL achieved sales turnover of USD 113 million as against US$108million during last fiscal. The Subsidiary Company has shown profit during the financial year 2016-17 in comparison to the marginal loss incurred in 2015-16. The net worth of MTPL stood at US$ million as on 31st March 2017. MMTC S PROMOTED PROJECT - Neelachal Ispat Nigam Ltd.