www. mmtclimited.co.

in

16.12 MMTC Limited

MMTC Limited (till 1993 known as Minerals and Metals Trading Corporation of India Ltd) was set up by Government of India in the year 1963 primarily to regulate the International trade of Minerals and Metals. Over the years new product lines like Agro Commodities, Fertilizers, Precious Metals, Coal & Hydrocarbons were added to the product profile of MMTC. MMTC is a schedule A / Mini-Ratna listed CPSE in Trading and Marketing Services sector under the administrative control of Ministry of Commerce & Industry with 99.33% of equity shareholding held by Govt. of India. MMTCs Registered and Corporate office are at New Delhi and the domestic network of MMTC in India spreads across 76 offices, warehouses and retail outlets. During the year 2010-11, MMTCs share capital was raised to ` 100 crore. This was done by issuing 50 crore bonus shares in 1:1 ratio in August 2010. The shares were split in 1:10 ratio in July 2010. During the year 2010-11, the share price of the company varied between (pre split) ` 37,999 and (post split) ` 867.80 The Vision and mission of the Company is to be 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 society. MMTC is Indias largest International Trading Company and exporter of Mineral, leading exporter / importer of Agro commodities, single largest importer / supplier of Metals including Gold & Silver and a major player in the Coal and Hydrocarbons imports by the country. The company commands extensive market coverage in over 65 countries in Asia, Europe, Africa, Oceania and America etc. MMTC has also putting up a Gold/Silver Medallion manufacturing unit, which would also include a Gold refinery as an integral part. For effective marketing of the finished products from this unit, as well as Jewellery from other sources, MMTC has set up in partnership with a leading Indian company, a chain of retail stores at various cities in India for medallions, jewellery and its home grown brand of SANCHI silverware. The company has one Subsidiary company and 9 Joint Ventures companies. MMTCs wholly owned subsidiary MMTC Transnational Pte. Ltd., Singapore (MTPL) was incorporated in October 1994 under the laws of Singapore with a share capital of US$ 1 million. MMTC has also set up Neelachal Ispat Nigam Limited (NINL) an Iron & Steel plant of 1.1 million tonnes capacity, 0.8 million tonne coke ovens and by product unit with captive power plant, jointly with Govt. of Orissa with total capital expenditure of nearly ` 2000 crores. The project has firm Iron ore supply linkages and also has captive Iron ore mining rights for reserves estimated at about 150 million tons. The construction of phase-II of the project with an estimated cost of ` 18,550 million is under progress MMTC has already diversified into the area of clean, non-conventional and renewable energy sources by setting up a 15MW Wind Energy Farm in the state of Karnataka, which has already been commissioned. The plant is generating power, which is being sold to the State Electricity Grid and has generated revenues amounting to ` 8.10 crore during the year 2010-11. The physical performance of the company for last three years is given below:
Major Products/ Services EXPORTS IMPORTS DOMESTIC Unit Services Provided during 2010-11 2009-10 3223 39969 1932 2008-09 4576 30695 1550 3693 63301 1860

` crore ` crore ` crore

Vision/Mission

Industrial / Business Operations

Besides keeping its position intact in its core areas of activities, MMTC also associates itself in promotion and development of trade related infrastructure. Aiming at diversification and to add value to trading operations, MMTC has taken various strategic initiatives following public private partnership route, which include, in broad terms, setting up of a Commodity Exchange (which has commenced its operation in November, 2009) and a Currency Exchange (which has commenced its operation in September, 2010). As a measure of investing in mining infrastructure MMTC is promoting a Joint Venture Company for exploration and development of mines for Minerals, Ferrous and Non-Ferrous ores, Precious Metals, Diamonds and Coal etc. MMTC has also been allotted a coal mine in Jharkhand having estimated reserves of about 800 million MT of both coking and thermal coal. MMTC is a member of a consortium, which has constructed permanent Iron Ore Loading berth at Ennore, which is expected to be commissioned shortly. MMTC is also partner in another consortium, which has been awarded the project for construction of a deep draft iron ore berth at Paradip port as well. Moreover, to facilitate promotion of two way trade MMTC took the lead in setting up free trade and warehousing zones at Haldia and Kandla. The operational performance of the company along with performance indicators and selected financial ratios during the period 2008-09 to 2010-11 can be seen on the opposite page. The Company registered an increase of ` 20595.41 crore in total income during 2010-11 which went up to ` 68079.51 crore in 2010-11 from ` 47484.10 crore during 2009-10. However, the net profit of the company reduced to ` 121.64 crore, a reduction of ` 94.60 crore over the previous year profit of ` 216.24 crore due to increase in other expenses and decrease in margins due to intense competition in all its trade activities.

Strategic Issues

Performance Highlights

Human Resource Management

The company employed 1762 regular employees as on 31.3.2011. This manpower strength includes 20 officers, 126 staff and 84 workers of erstwhile Mica Trading Company Ltd., which had been merged with MMTC pursuant to the orders of BIFR. The retirement age in the company is 60 years. It is following IDA 2007 pattern of remuneration. Details of employment in last 3 years are given below:
Particulars Executives including NonUnionised Supervisors Non-Executives # Total Employees 2010-11 584 1178 1762 2009-10 608 1230 1838 2008-09 619 1263 1882

# Detail break-up of Non-Executive employees is at Statement no. 25 of volume-I of PE Survey.

386

Trading & Marketing Services

7, Scope Complex Lodi Road New Delhi 110003

MMTC Limited

Balance Sheet Particulars Authorised Capital (1) Sources Of Fund (1.1) Shareholders Funds (A) Paid-Up Capital Central Govt Others (B) Share Application Money (C) Reserves & Surplus Total (A) + (B) + (C) (1.2) Loan Funds (A) Secured Loans (B) Unsecured Loans Total (A) + (B) (1.3) Deferred Tax Liability Total (1.1) + (1.2) + (1.3) (2) Application Of Funds (2.1) Fixed Assets (A) Gross Block (B) Less Depreciation (C) Net Block (A-B) (D) Capital Work In Progress Total (C) + (D) (2.2) Investment (2.3) Current Assets, Loan & Advances (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Other Current Assets (E) Loan & Advances Total (A)+ (B)+ (C)+ (D)+ (E) (2.4) Less:current Liabilities & Provisions (A) Current Liabilities (B) Provisions Total (A+B) (2.5) Net Current Assets (2.3-2.4) (2.6) Deferred Revenue / Pre. Expenditure (2.7) Deferred Tax Asset (2.8) Profit & Loss Account(Dr) Total (2.1+2.2+2.5+2.6+2.7+2.8) 484656 40000 524656 703521 0 3355 0 746320 499719 39027 538746 603391 0 2266 0 645194 64797 253973 674824 0 234583 1228177 213483 155231 608076 0 165347 1142137 20744 9659 11085 51 11136 28308 20641 8467 12174 72 12246 27291 500199 108148 608347 0 746320 461436 55043 516479 0 645194 9933 67 0 127973 137973 4967 33 0 123715 128715 2010-11 10000 2009-10 10000

(` in Lakhs) 2008-09 10000

Profit & Loss Account Particulars (1) Income (A) Sales/Operating Income (B) Excise Duty 6885449 0 6885449 71188 -148686 6807951 4512419 0 4512419 80361 155630 4748410 2010-11 2009-10

(` in Lakhs) 2008-09

3682076 0 3682076 103212 2532 3787820

4967 33 0 107338 112338 430520 0 430520 0 542858

(C) Net Sales (A-B) (D) Other Income/Receipts (E) Accretion/Depletion in Stocks (I)Total Income (C+D+E) (2) Expenditure (A) Purchase of Finished Goods/ Consumption Of Raw Materials (B) Stores & Spares (C) Power & Fuel (D) Manufacturing / Direct / Operating Expenses (E) Salary, Wages & Benefits / Employee Exp. (F) Other Expenses

6458786 0 202 44501 18376 225973 2294 6750132 57819 1247 0 56572

4533479 0 193 115122 16836 6689 190 4672509 75901 1333 0 74568

3590697 0 181 64282 16528 22316 4061 3698065 89755 1258 182 88315

20264 7296 12968 212 13180 23154

(G) Provisions (II)Total Expenditure (A to G) (3) Profit Before Dep, Int, Taxes & EP (PBDITEP) (I-II) (4) Depreciation (5) Dre/Prel Exp Written Off (6) Profit Before Int., Taxes & Ep (PBITEP) (3-4-5)

57853 190732 585800 0 187232 1021617

(7) Interest (A) On Central Government Loans (B) On Foreign Loans (C) Others (D) Less Interest Capitalised (E) Charged to P & L Account (A+B+C-D) (8) Profit Before Tax & EP(PBTEP) (6-7E) (9) Tax Provisions (10) Net Profit / Loss Before EP (8-9) (11) Net Extra-Ord. Items (12) Net Profit / Loss(-) (10-11) (13) Dividend Declared (14) Dividend Tax (15) Retained Profit (12-13-14) 0 0 37186 0 37186 19386 7014 12372 208 12164 2500 405 9259 0 0 41262 0 41262 33306 11683 21623 -1 21624 4500 747 16377 0 0 66587 0 66587 21728 7716 14012 -10 14022 0 0 14022

483502 35205 518707 502910 582 3032 0 542858

Important Indicators (i) Investment (ii) Capital Employed (iii) Net Worth (iv) Cost of Production (v) Cost of Sales (vi) Gross Value Added (At Market Price) (vii) Total Employees (Other Than Casuals) (Nos.) (viii) Avg. Monthly Emoluments Per Employee (Rs.)

2010-11 10000 714606 137973 6788565 6937251

2009-10 5000 615565 128715 4715104 4559474

2008-09 5000 515878 111756 3766092 3763560

Financial Ratios (i) Sales : Capital Employed (ii) Cost of Sales : Sales (iii) Salary / Wages : Sales (iv) Net Profit : Net Worth (v) Debt : Equity (vi) Current Ratio (vii) Sundry Debtors : Sales (No. of Days) (viii) Total Inventory : Sales

2010-11 963.53 100.75 0.27 8.82 4.41 2.34 13.46 3.43

2009-10 733.05 101.04 0.37 16.8 4.01 2.12 12.56 17.27

2008-09 713.75 102.21 0.45 12.55 3.83 1.97 18.91 5.73

1762 86909

1838 76333

1882 73185

Public Enterprises Survey 2010-2011: Vol-II

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