MIRA
INFORM REPORT
|
Report Date : |
21.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
MMTC LIMITED |
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|
Registered Office : |
Core 1, Scope
Complex, 7 Institutional Area, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.09.1963 |
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Com. Reg. No.: |
55-4033 |
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CIN No.: [Company
Identification No.] |
L51909DL1963PLC004033 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM09574F DELM09969B DELM10208C DELM13098B |
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PAN No.: [Permanent
Account No.] |
AAACM1433E |
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|
Legal Form : |
Public Limited
Liability company. The company’s
shares are listed on the Stock Exchanges due to partial disinvestments by Government
of India. |
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Line of Business : |
Trading of
Minerals, Marine, Textiles, Leather and Gem, Metals, Fertilizers, Gold,
Silver, Jewellery, Agro Products and general trading in many products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 35285200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed International Trading House owned by the Government of
India. Available information indicates high financial responsibility of the
company. Their trade relations are reported as fair. Financial position of
the company is comfortable. Payments are usually correct and as per
commitments. The company can
be considered good for any normal business dealings. |
LOCATIONS
|
Registered
Office : |
Core 1, Scope
Complex, 7 Institutional Area, |
|
Tel. No.: |
91-11-24362200 |
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Fax No.: |
91-11-24362077/24362224/24360724/24362072 |
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E-Mail : |
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Website : |
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Regional
Office : |
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Fax No.: |
91-11-2331 8593 |
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E-Mail : |
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Regional
Office : |
Mittal Tower, 2nd
Floor, `A&B’ Wing, Nariman Point, Mumbai – 400 021, |
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Fax No.: |
91-22-2204 5034 |
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E-Mail : |
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Regional
Office : |
Ruby House, 4th
& 5th Floor, |
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Fax No.: |
91-33-2242 1292 |
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E-Mail : |
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Regional
Office : |
No. 7, Chennai House,
Esplanade, Chennai – 600 011, Tamilnadu |
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Fax No.: |
91-44-2534 0559 |
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E-Mail : |
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Regional
Office : |
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Fax No.: |
91-80-2227 2043 |
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E-Mail : |
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Regional
Office : |
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Fax No.: |
91-834-513 283 |
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Regional
Office : |
Alok Bharati
Complex, Shahid Nagar, Bhubaneshwar – 751 007 |
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Fax No.: |
91-674-2510 847 |
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E-Mail : |
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Regional
Office : |
Budha Bawanam, 7th
Floor, Near Boats Club, Municipal Complex, |
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Fax No.: |
91-40-2846 943 |
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E-Mail : |
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Regional
Office : |
2 Nagindas
Chambers, Usmanpura, |
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Fax No.: |
91-79-2754 3739 |
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E-Mail : |
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Regional
Office : |
MMTC Bhawan, Port
Area, |
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Fax No.: |
91-891-2561 761 |
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Regional Office
: |
Red Cross Road,
Main Road, P. B. No. 60, Satyanarayanpet, Bellary – 583 103 |
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Fax No.: |
91-8392-2742 78 |
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Regional
Office : |
Nalda, P. O.
Barbil District, Keonjhar, Barbil, Nalda |
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Fax No.: |
91-6767-2305 80 |
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Regional Office
: |
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E-Mail : |
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Overseas
Office : |
5Fc, YU Building 1-5-7-,
Horidomecho, Nihonbashi, Chou-Ku, |
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Fax No.: |
0081-3-3808-2268 |
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E-Mail : |
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Overseas
Office : |
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Fax No.: |
00971-4-817799) |
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E-Mail : |
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Overseas
office: |
Also offices at
Amman (Jordan), New York (U.S.A.), Singapore, Berlin (Germany) and Moscow
(Russia) |
DIRECTORS
|
Name : |
Mr. S. D. Kapoor |
|
Designation : |
Chairman &
Managing Director [w.e.f. 13-08-1998] |
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Name : |
Dr. D. B. L.
Madhukar |
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Designation : |
Executive
Director |
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Name : |
Mr. S. M. Dewan |
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Designation : |
Director |
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Name : |
Mr. P. R.
Tripathi |
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Designation : |
Director |
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Name : |
Mr. M. P. Gupta |
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Designation : |
Director
(Marketing) |
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|
Name : |
Mr. Sanjay Batra |
|
Designation : |
Executive
Director |
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Name : |
Mr. A. N. Tiwari |
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Designation : |
Director |
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Name : |
Mr. Vijay Bansal |
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Designation : |
Director |
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Name : |
Dr. Arvind
Pandalai |
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Designation : |
Director |
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Name : |
Mr. L. Mansingh |
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Designation : |
Director |
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Name: |
Mr. N. K. Nirmal |
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Designation: |
Director C. G. M
(F & A) |
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Name: |
Mr. S. K. Kar |
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Designation: |
Director
(Finance) |
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|
Name: |
Mrs. Asha Swarup |
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Designation: |
Executive Officio
Part Time Director (w.e.f. 10.08.2004) |
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|
Name: |
Mr. Dr. Christy L
Fernandez |
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Designation: |
Executive Officio
Part Time Director (w.e.f. 05.11.2004) |
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|
Name: |
Mr. Sanjiv Batra |
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Designation: |
Director
(Marketing) up to 18.08.2005 |
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|
Name: |
Mr. Adarsh Goyal |
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Designation: |
Director
(Marketing) |
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|
Name: |
Mr. G P Sharma |
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Designation: |
Director
(Personnel) |
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|
Name: |
Mr. S K Arora |
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Designation: |
Executive Officio
Part Time Director |
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|
Name: |
Mr. Gopal K
Pillai |
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Designation: |
Executive Officio
Part Time Director |
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|
Name: |
Mr. K K Jha |
|
Designation: |
Chief Vigilance
Officer (w.e.f. 08.12.2004) |
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|
Name: |
Mr. A K Verma |
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Designation: |
Senior Executives
Director (up to 30.06.2005) |
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|
Name: |
Mr. Y N Bhargava |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. P K
Maheshwary |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. N K Mathur |
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Designation: |
Senior Executives
Director (up to 25.07.2005) |
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|
Name: |
Mr. J P
Srivastava |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. N K Chauhan |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. Lekh Chand |
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Designation: |
Senior Executives
Director |
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Name: |
Mr. C H Rao |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. Sunir Khurana |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. Ashish
Majumdar |
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Designation: |
Senior Executives
Director |
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|
Name: |
Mr. Rajeev
Jaideva |
|
Designation: |
Senior Executives
Director |
KEY EXECUTIVES
|
Name : |
Mr. Manohar
Balwaj |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group 2 |
|
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|
(1) Indian |
|
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(a) Central Government / State Government |
49665594 |
99.3312 |
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(B) Public Shareholding 3 |
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(a) Mutual Funds / UTI |
331525 |
0.6631 |
|
(2) Non – Institutions |
|
|
|
(a) Bodies Corporate |
391 |
0.0008 |
|
(b) Individuals – i.Individual shareholders holding nominal share capital up to Rs.0.100
million |
2467 |
0.0049 |
|
© Any Other (specify) |
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i. Non Resident Indians (repat) |
17 |
0.00 |
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v. Non Resident Indians (Non Repat) |
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© Shares held by custodians and against which depository receipts have
been issued |
|
|
|
Grand Total |
50000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trading of Minerals,
Marine, Textiles, Leather and Gem, Metals, Fertilizers, Gold, Silver,
Jewellery, Agro Products and general trading in many products. |
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Products : |
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Exports : |
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Products ; |
Copper, Zinc, Non – ferrous metals,
fertilizers, industrial raw material etc |
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|
Countries : |
Mauritius, South
Africa, Tunisia, Bangladesh, China, Hongkong, Indonesia, Japan, Korea, Malaysia,
Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand,
Vietnam, Croatia, CIS, Czech Republic, Hungary, Poland, Romania, Austria,
Belgium, France, Germany, Italy, Netherlands, Norway, Portugal, Spain,
Switzerland, U.K., Chile, Canada, U.S.A., Abu Dhabi, Bahrain, Dubai, Iraq,
Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, U.A.E. and New
Zealand |
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Imports : |
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Products : |
Iron Ore, Agro products, Rice, Wheat, Edible Oil, Pulses, Sugar etc |
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Countries : |
Algeria, Kenya,
Libya, South Africa, Zaire, Zambia, Bangladesh, China, Indonesia, Korea,
Malaysia, Pakistan, Singapore, Thailand, Bulgaria, CIS, Macedonia, Romania,
Belgium, Finland, France, Germany, Luxembourg, Netherlands, Norway, Spain,
Switzerland, U.K., Argentina, Brazil, Chile, Canada, U.S.A., Bahrain, Dubai,
Iran, Israel, Jordan, Kuwait, Qatar, Saudi Arabia, Syria, U.A.E. and
Australia. |
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GENERAL INFORMATION
|
No. of Employees : |
2062 |
|
|
|
|
Bankers : |
+
State
Bank of +
Canara
Bank +
Indian
Bank +
Indian
Overseas Bank +
Oriental
Bank of Commerce +
State
Bank of +
Dena
Bank +
Syndicate
Bank +
Vysya
Bank Limited +
IndusInd
Bank +
Bank
of +
Central
Bank of +
Deutsche
Bank +
H.D.F.C.
Bank +
Punjab
National Bank +
Bank
of +
Bank
of +
State
Bank of Bikaner & Jaipur +
Vijaya
Bank +
IDBI
Bank Bank of |
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|
|
|
|
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|
Banking
Relations : |
Good |
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|
|
|
Auditors : |
|
|
Name : |
S N Dhawan & Company Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries : |
+
MMTC
Transnational Pte Limited Fax No. 0065-538 5316 E-Mail mtplsing@signet.com.sg +
MMTC
Transnational ( Kransopresnenskaya
Nab. 12, Room No. 424, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
500.000 |
500.000 |
500.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8321.300 |
7832.700 |
7034.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8821.300 |
8332.700 |
7534.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11270.100 |
5070.600 |
3025.100 |
|
|
2] Unsecured Loans |
27.900 |
0.200 |
49.900 |
|
|
TOTAL BORROWING |
11298.000 |
5070.800 |
3075.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
20119.300 |
13403.500 |
10609.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1492.000 |
282.900 |
288.700 |
|
|
Capital work-in-progress |
34.200 |
37.400 |
29.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
2549.600 |
2209.600 |
2209.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1776.900
|
2491.400
|
1108.900
|
|
|
Sundry Debtors |
11191.500
|
7381.400
|
6844.100
|
|
|
Cash & Bank Balances |
14407.900
|
14051.700
|
46932.400
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
5651.700
|
10249.900
|
6635.200
|
|
Total
Current Assets |
33028.000
|
34174.400 |
61520.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
15393.900
|
21803.100
|
52537.700
|
|
|
Provisions |
1605.700
|
1542.600
|
982.400
|
|
Total
Current Liabilities |
16999.600
|
23345.700 |
53520.100 |
|
|
Net Current Assets |
16028.400
|
10828.700
|
8000.500
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
15.100 |
44.900 |
81.900 |
|
|
|
|
|
|
|
|
TOTAL |
20119.300 |
13403.500 |
10609.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
233461.400 |
163933.900 |
151380.700 |
|
|
Other Income |
1672.400 |
1655.500 |
3597.900 |
|
|
Total Income |
235133.800 |
165589.400 |
18736.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1893.300 |
1678.900 |
1763.200 |
|
|
Provision for Taxation |
625.300 |
596.000 |
691.500 |
|
|
Profit/(Loss) After Tax |
1268.000 |
1082.900 |
1071.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
3002.400 |
3524.500 |
1807.600 |
|
|
Selling and Administrative Expenses |
1972.500 |
1721.700 |
1739.100 |
|
|
Raw Material Consumed |
226873.200 |
158693.600 |
145304.000 |
|
|
Employees Cost |
877.200 |
700.100 |
694.900 |
|
|
Increase/(Decrease) in Finished Goods |
(642.700) |
NA |
NA |
|
|
Miscellaneous Expenses |
368.400 |
NA |
NA |
|
|
Interest |
714.800 |
827.400 |
2861.400 |
|
|
Power & Fuel |
14.700 |
14.700 |
12.900 |
|
|
Depreciation & Amortization |
79.700 |
NA |
NA |
|
|
Other Expenditure |
0.00 |
413.400 |
638.500 |
|
Total Expenditure |
233260.200 |
165895.400 |
153058.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Sales Turnover |
|
|
60790.000 |
|
Other Income |
|
|
44.200 |
|
Total Income |
|
|
60834.200 |
|
Total Expenditure |
|
|
60450.900 |
|
Operating Profit |
|
|
383.300 |
|
Interest |
|
|
(129.100) |
|
Gross Profit |
|
|
512.400 |
|
Depreciation |
|
|
23.100 |
|
Tax |
|
|
100.000 |
|
Reported PAT |
|
|
389.300 |
200706 Quarter 1 -----
Notes Expenditure Includes (Increase)/Decrease in Stock in
Trade/Consumption of Raw Materials Rs 60146.30 million
Staff/Administrative/Selling & Other Expenses/Write off Rs 299.30 million
Extraordinary Items Indicates VRS / DRE / Provision & Prior Periods
Expenses EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter Nil Complaints disposed off during
the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The
financial results are based on the accounts drawn in accordance with generally
accepted accounting practices consistently followed in compliance with the
mandatory Accounting Standards and are reported in the format prescribed by
SEBI. 2. Staff cost incurred during the period include Rs 235.00 million on
salaries & allowances. 3. Provision for deferred tax expense on the income
for the year, if any, which is adjustable against unrecognized deferred tax
assets as at March 31, 2008 shall be accounted for on reassessment of
unrecognized assets in the audited account. 4. The Provision for taxation has
been made on the estimated annual profit. 5. Previous year figures have been
re-grouped wherever necessary. 6. The observations of auditors in last year's
report have no material impact on profits disclosed in the accounts. 7. The
above unaudited financial results have been taken on record in the meeting of
Board of Directors held on July 24, 2007.
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
|
|
0.51 |
0.50 |
|
Long Term Debt Equity Ratio |
|
|
0.000 |
0.00 |
|
Current Ratio |
|
|
1.13 |
1.10 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
|
226.04 |
213.72 |
|
Inventory |
|
|
91.07 |
110.72 |
|
Debtors |
|
|
23.05 |
26.55 |
|
Interest Cover Ratio |
|
|
3.03 |
1.62 |
|
Operating Profit Margin (%) |
|
|
1.55 |
3.08 |
|
Profit Before Interest and Tax Margin (%) |
|
|
1.53 |
3.05 |
|
Cash Profit Margin (%) |
|
|
0.69 |
0.74 |
|
Adjusted Net Profit Margin (%) |
|
|
0.66 |
0.71 |
|
Return on Capital Employed (%) |
|
|
20.98 |
43.85 |
|
Return on Net Worth (%) |
|
|
13.65 |
15.04 |
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2007 |
|
PAT / Total Income |
(%) |
|
|
0.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
0.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
5.48 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
1.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
1.94 |
LOCAL AGENCY FURTHER INFORMATION
RESULTS
OF OPERATIONS
The Company achieved its Highest ever business turnover of Rs. 233016.23
million during 200607 registering a growth of 42% over the previous year.
This
ever-best business turnover since MMTC's inception in 1963 includes Exports of
Rs. 34131 million and imports of Rs. 186074 million - both the highest ever
performance in last 44 years. The other trade related earnings contributed Rs.
445.13 million. The net profit earned by the Company recorded a growth of 17%
over previous year and is the highest profit earned by the Company since
inception.
This noteworthy performance is despite intense competition faced by the
Company in all its trade activities - both from local as well as International
players, putting considerable pressure on margins, which was responded to
through growth in core operations by competitive offering of products bundled
with efficient services as also by successfully tapping new areas of business
by innovative value addition, aggressive marketing efforts and better utilization
of available resources
AWARDS
& RANKINGS
Following Awards and Rankings were bestowed on the Company during
2006-07.
1. Top Indian Company in the Trading Sector for the D&B - American
Express Corporate Awards 2006
2. NIRYAT SHIROMANI PURASKAR to CMD and Gold Medal to MMTC Ltd. by
IndianCouncil of Small and Medium Exporters
3. Niryat Shree Silver Trophy for outstanding export performance in the
category of highest foreign exchange earner during the year 2003-04 awarded by
FIEO
4. Niryat Shree Silver Trophy for outstanding export performance in the
category of highest foreign exchange earner during the year 2004-05 awarded by
FIEO
5. Niryat Shree Silver Trophy for outstanding export performance in the
category of Gems & Jewellery, non-SSI during the year 2003-04 awarded by
FIEO
6. Niryat Shree Certificate of Excellence for outstanding export
performance in the category of multi product start export house, non-SSI during
the year 2004-05 awarded by FIEO
7. Niryat Shree Bronze Trophy for outstanding export performance in the
category of Residual Products, non-SSI during the year 2004-05 awarded by
FIEO
8. Top Exporter Award by the Institute of Marketing & Management
9. Amity Corporate Excellence Award for being the Largest International
Trading Enterprise contributing to Foreign Exchange
10. CAPEXIL Award for the highest export of minerals during the year
2005-06 (15th time in a row)
11. Top ranking in 'Trading Sector' by Business Standard in their
publication BS 1000 "
12. MMTC has been included in the Top 40 Indian Companies by
Forbes.com
RESERVES
A sum of Rs.
7832.73 million was available in the reserves and surplus of the Company as on 1st
April 2006. The Directors have proposed that out of Rs. 979.20 million
available out of the profits for the year 2006-07, after payment of dividend
and tax thereon, an amount of Rs. 130 million be transferred to General
Reserves of the Company and balance profit of Rs.849.20 million by carried
forward as retained profits. Accordingly an amount of Rs. 8321.28 million shall
be available in "Reserves and Surplus" of the Company as on 31st
March 2007
SUBSIDIARY COMPANY
The wholly
owned subsidiary of the Company - MMTC Transnational Pte. Ltd.
Singapore
(MTPL) was incorporated in October 1994 under the laws of
MTPL generated
a Profit before tax of Rs. USD 1.64 million and profit after tax of USD 1.53
million during 2006-07. The net worth of MTPL stood at USD 7.29 million as on 31st
March 2007. MTPL paid dividend @ 25% (net of tax) for the year ended 31.03-06
and interim dividend @ 25% (net of tax) for the year 2006-07. MTPL has so far
paid total dividends exceeding the capital contributed by the company in the
wholly owned subsidiary besides multiplying its net worth by seven times since
its inception.
MTPL continues
to enjoy prestigious "Global Trader" (GT) status awarded to it by IE
Singapore since FY 2000.
Pursuant to the provisions of Section 212 of the Companies Act, 1956, the
audited financial statements of MTPL together with Director's & Auditor's
report are attached herewith.
MMTC'S PROMOTED PROJECT-Neelachal Ispat Nigam Ltd. (NINL)
As a strategy to diversify and add value to trading operations, the company has
set up Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant of 1.1
million tonnes capacity, 0.8 million tonne coke ovens and by product unit with
captive power plant' jointly with Govt. of Orissa with total capital
expenditure of nearly Rs. 2000 crores. The project has firm Iron ore supply
linkages and also has captive Iron ore mining rights for reserves estimated at
about 110 million tons. The highlights of the financial performance of NINL
during 2006-07 is tabulated herein below:-
Item 2006-07 (Rs./millions) 2005-06 (Rs. millions)
Total Sales
13008.200 11652.400Exports 5935.00 3214.100Domestic Trade 6967.100 8331.700Pig
Iron Sales 874.24 762.02Granulated Slag 3.65 3.13Scrap Sales 63.40 55.71BF Coke
Sales 261.59 274.27Crude Tar 505.700 278.300Ammonium Sulphate 45.100
41.100Power Exports 152.800 89.4 00
During the year 2006-07 NINL generated a cash profit and net profit of
Rs. 1486.000 millions and Rs. 578.000 millions respectively.
INDUSTRIAL RELATIONS & HUMAN RESOURCE MANAGEMENT
Cordial and
harmonious industrial relations continued to prevail in the company with no
man-days being lost during the year. Joint Consultative Machinery (JCM)
meetings were held with the apex forums of employees for arriving at amicable
decisions on personnel issues besides encouraging them for active participation
in management through suggestions resulting in business development and
improved servicing of customers.
The aggregate manpower of the company as on 31st March 07 stood at 1997,
including 5 Board level executives and Chief Vigilance officer, comprising of
609 Officers, 1252 staff & 136 workers. This manpower strength includes 36
officers, 171 staff & 136 workers of erstwhile Mica Trading Company Ltd.,
which had been merged with the company pursuant to the orders of BIFR. While
women employees represented 16.82% (336 employees) of the total manpower, the
representation of SC, ST, OBC & physically handicapped employees was to the
extent of 20.83% (416 employees), 7.46% (149 employees), 0.85% (17 employees)
and 1.35% (27 employees) respectively.
During the year
16 officers were inducted through campus recruitment and 1 officer through open
recruitment. In an effort for further rightsizing the manpower, Voluntary
Retirement Scheme was offered which was availed by 4 officers & 3 staff
cadre employees of the Company.
Aiming towards further enhancing / upgrading the skills of employees in the
fast changing business scenario, 1801 employees were imparted training during
the year through programs organized with in-house expertise as well as external
resources from renowned institutions / organizations in different spheres of
company's activities. The employees deputed for training included 294 employees
belonging to SC, 87 to ST & 349 women employees. The training imparted
works out to 3506 training man-days during the year 2006-07.
IMPLEMENTATION OF OFFICIAL
LANGUAGE
The Company has
been dedicated to uphold Official Language Policy of the Govt. Towards this and
to promote usage of the Official Language by employees of the company several
programs in the form of Hindi Workshops / Hindi Week / Hindi Fortnight were
organized at the Corporate Office and Regional Offices.
During the year, the Company had the privilege of interacting with the
Parliamentary Committee on Official Languages, which inspected the company's
Delhi Regional Office and was satisfied with the progress made with regard to
the use of Hindi in MMTC.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT 2006
-07
According to
WTO, the year 2006 witnessed robust growth in the world economy and vigorous
trade expansion. While Global GDP accelerated to 3.7%, the trade expanded in
real terms during 2006 at a much faster rate. World merchandise exports
increased by 8% in 2006 (in real terms) while services exports were up by an
estimated 11%. The Global Economy could attribute its strength to, inter alia,
the continued high economic & trade growth reported by
During the year
2006-07, Indian economy grew by 9.4% against 9% in the previous year as robust
growth in manufacturing & services sector more than made up for a slowdown
in agricultural and construction sector. During the year
In the aforesaid scenario, the Company, during 2006-07, further improved
upon its already impressive performance during the previous year by achieving
its highest ever business turnover of Rs. 233016.23 million registering a
growth of 42% over previous year. This highest ever turnover includes company's
best export performance of Rs. 34131.04 million-up by 17% over previous year,
all time high import performance of Rs. 186074.55 million indicating a growth
of 58% over 2005-06 and domestic trade of Rs. 12810.64 million. Other trade
related earnings contributed Rs. 445.13 million to the business revenue of the
Company.
Financial Review
During the year under review, the Company continued to pursue the goal of
transforming the set up into a more dynamic organization with a stronger
earning base that can respond with agility to changes in its operating
environment.
The ongoing changes in global economic & business environment coupled
with rapid innovation and proliferation of the Internet and globalization have
continued to create an increasingly competitive market environment which is
driving trading companies like MMTC to constantly transform the manner in which
they operate. Customers are increasingly demanding better quality, products and
improved service with accelerated delivery times and at lower prices. To
address these issues The Company continued its focus on its core competencies,
improved customer servicing, developing new products & markets, reducing
business risks and managing operations more effectively.
As a result the company earned trading profit of Rs. 2497.46 million
surpassing the previous year's performance by 12.60%. The profit before tax and
profit after tax earned by the company amounted to Rs. 1893.25 million and Rs.
1267.96 million respectively recording the highest ever-net profit after tax
earned by the Company in its history. The operations during the year
contributed Rs.6211 million to the national exchequer in the form of various
levies / duties / taxes / dividends etc. The company's improved management of
financial resources and funds deployment yielded income of Rs. 291.73 million
and net interest earnings of Rs. 491.14 million. The corporate tax liability of
the Company during the 2006-07 works out of Rs.562.67 million.
Finance, Liquidity & Risk
Management
The company has been following prudent fund management strategies. To provide
for the liquidity risks that may arise due to non-budgetary outflows or due to
unanticipated delays in realization, adequate credit lines are maintained for
short-term funding of trade transactions, which do not bear any commitment
charges towards unutilized limits. MMTC continues to be a zero long-term debt
company.
The currency transaction / swap rates are being continuously monitored and
exposures hedged, as and when necessitated, against the possible adverse
movements. The International markets / suppliers are tapped from time to time
to avail cheaper sources of funds as also interest rate arbitrage.
MMTC also takes
requisite insurance covers at competitive terms / rates to hedge the risks
associated with international trading operations.
The legal cell
of the company ensures compliance of diverse statues and takes legitimate
remedies to recover dues from defaulting associates besides defending the
company against various claims. The "Disputes Settlement Committee"
which has been in operation for amicable resolution of disputes with business
associates, in its 10 meetings held during 2006-07 settled seven cases
involving an amount of Rs. 41.4 million.
Assets & Liabilities
The company
possessed net assets of Rs 20104.22 million as on 31st March 2007, which
include net fixed assets of Rs. 1526.22 million, investments of Rs. 2549.56
million and net current assets of Rs. 15667.44 million.
Sources and Utilization of FundsDuring the year 2006-07 cash amounting to
Rs. 356.13 million were generated from internal and external sources which were
deployed for financing the working capital needs, capitalization of investments
and payment of interim dividend and tax thereupon.
Business Groupwise Review for 2006-07
Minerals
Despite pressure on the availability of ores for exports and constraints
of infrastructure and logistics, the Company maintained its leadership position
in mineral exports through aggressive marketing efforts, enhanced customer
focus and tapping of emerging opportunities, especially in
During the year
2006-07
Minerals group of the company contributed a turnover of Rs. 27661.10
million during the year reaching the highest ever business volumes registered
by the company in this segment. The said performance of Minerals group during
2006-07 includes exports valued at Rs. 27384.91 million and domestic trade of
Rs. 276.19 million, In quantitative terms, the exports made by the group
include 81.29 lakh tonnes of Iron Ore valued at Rs. 19012.19 million, 1.70 lakh
MT of Manganese ore valued at Rs. 408.81 million, 6.48 lakh MT of chrome
concentrate valued at Rs 5050.81 million and 4.03 lakh MT of Chrome Ore valued
at Rs. 2913.10 million.
The export of Iron & steel making raw material from
Precious
Metals, Gems & Jewellery
The Precious
Metals, Gems & Jewellery group of the Company recorded its ever-best
performance by achieving a turnover of Rs. 137699.72 million during 2006-07.
This performance was realized through diversified activities, which include
Jewellery exports through MMTC's duty free outlets and sales at overseas
exposition amounting to Rs. 289.62 million, imports of gold at Rs. 132719.45
million, silver worth Rs. 2226.29 million, rough diamonds & semi precious
stones worth Rs. 95.62 million as also domestic sale of gold bar / medallion at
Rs. 1240.67 million, gold worth Rs. 630.72 million, silver/silver medallion at
Rs. 208.05 million, 'SAN CHI' silverware at Rs. 110.70 million besides sales at
domestic jewellery exhibition at Rs. 152.26 million sales at domestic showroom
at Rs. 25.12 million and precious stones worth Rs. 1.22 million. The year also
witnessed groups foray into trading at commodity exchanges. This noteworthy
performance was achieved despite wide fluctuations in international gold prices
ranging from USD 524/Tr. Oz to USD 725/Tr. Oz.
MMTC
enjoys the position of market leader in the Indian bullion trade having
flexibility to operate from various centers spread all over the country
offering novel product services besides maintaining enduring relationship.
Aiming at maintaining its leadership, during 2007-08, MMTC shall add new
bullion centers on need basis, add franchisees, increase supply source base,
open Assaying & Hall Marking Centers, expand fabrication facility for
sourcing silverware besides organizing more domestic and foreign jewellery
exhibitions besides tapping opportunities emerging from the continuation of
robust demand of bullion and retail boom in jewellery persisting in
2007-08.
Metals and Industrial Raw Material
With
robust growth witnessed in Industrial & Infrastructure sector leading to
increased surge in demand for base metals and Industrial raw materials during
the year 2006-07, the Metals group of the company contributed Rs. 18873.60
million to MMTC's turnover during 2006-07 posting a noteworthy growth of about
22% over the previous fiscal. The contribution of the group comprised of export
of Pig iron and slag produced by NINIL - a MMTC promoted Iron & steel plant
worth Rs.5446.84 millions, Import of Non-Ferrous Metals and Industrial Raw
Materials worth Rs. 8479.23 million and domestic trade of Rs. 4947.53 millions including
sale of pig iron produced at NINIL worth Rs.2779.86 million.
With
projections of Industrial and Infrastructure sector to continue being on upward
trend, the prospects of MMTC's growth in this segment seem to be optimistic. To
avail of the emerging opportunities, the group has been realigning its
strategies / business model for further consolidation and tapping of new
markets / products, focusing on its core products / markets, entering into
strategic alliance with producers of NFM besides improving further on customer
relationship management, unrelenting focus on Institutional clientele and
deeper market access.
Agro Products
The Agro
products group of the company achieved a growth of over 52% by registering a
turnover of Rs. 5943.36 millions during 2006-07, which includes export of 34206
MT of sugar worth Rs 752.75 million, import of 183079 MT Dun / Yellow peas
worth Rs.2082.28 million, 49021 MT Wheat worth Rs.469.18 million, 28284 MT RBD
/ CPO worth Rs.626.75 million, 12735MT DSBO valued at Rs. 341.92 million and
Soya oil worth Rs. 60.49 million besides domestic trading of 63920 MT sugar
worth Rs. 1244.94 million, 3083 MT Pulses worth Rs. 309.12 million and 863577
MT Tea worth Rs. 55.93 million.
The Agro Group of
the company has devised plans and strategies to meet the shortages of food
grains and pulses in the country by imports, export of excess availability of
agro products like rice to neighboring countries besides meeting the challenges
emanating from wide variations in quantity / product range available for
imports / exports and broadening commodity profile to ensure sustainability of
business growth in this segment in future.
Fertilizer / Fertilizer Raw Materials
The Fertilizer group of the Company surpassed its best ever performance during
2005-06 and contributed a turnover of Rs.22634.44 million representing an
impressive growth of over 66%. The group's performance during 2006-07 included
Export of Urea and Di-ammonium Phosphate worth Rs. 169.29 million and Rs.87.63
million respectively, Import of 12.92 lakh Metric Tonnes of Urea valued at Rs.
14222.91 million, 4.68 lakh Metric Tonnes of Di -ammonium Phosphate worth Rs.
6346.30 million, 1.71 lakh Metric Tonnes of Muriate of Potash at Rs. 1621.42 million
and Sulphur worth Rs. 140.44 million besides domestic trading of Ammonium
Sulphate produced at NINL - the MMTC promoted Iron & Steel plant, valued at
Rs. 46.45 million.
The factors
attributing to the noteworthy performance of the group include MMTC's expertise
in bulk handling, domain knowledge, hands on experiences and expertise, skills
to predict emerging trends and its ability to act and respond promptly. Over
the years the group has developed an excellent and sustained network with
overseas suppliers and customers besides maintaining long lasting
relationships. In fertilizer trade, which is dependent on various factors like
monsoon, Govt. policy etc, this wealth of domain knowledge and relationships
shall be the prime factor for group's growth in future.
The consumption of fertilizers is
growing in
Coal & Hydrocarbons
The Coal &
Hydrocarbons group contributed a turnover of Rs. 19613.38 million to the
highest ever turnover recorded by the company. The turnover contributed by the
group included import of 23.12 lakh tonnes of steam coal valued at Rs.7331.27
million, 11.02 lakh tonnes of Coking Coal valued at Rs. 6868.17 million and
2.34 lakh tones of LAM Coke worth Rs. 2096.48 million besides domestic trading
in LAM Coke worth Rs.2644.90 million, Crude Tar amounting to Rs. 505.70 million
and Met Coke worth Rs. 166.85 million.
The group
achieved this performance, by adopting innovative strategies of widening the
supply sources and customer base and offering value added services bundled with
the product.
With ongoing thrust for growth in infrastructure sector leading to increased
consumption of steel thus pushing up the demand for LAM coke and limited
availability of coking coal indigenously, additional opportunities shall
surface in future. The group has also fine-tuned its strategies to tap emerging
opportunities for import and serve the increased demand of coal & coke to
power, steel, fertilizer, chemical, cement & sponge Iron units during
2007-08.
Mica
As reported last year, the changed market requirement and technological
developments in Mica processing technologies globally led to activities at Mica
Division coming to a halt since 2002-03. The final decision of government on
the petition filed by the Company with appropriate authorities under Section
25-0 of Industrial Disputes Act for closure of Mica Division is awaited.
General
Trading
The General
Trading Group contributed Rs. 590.65 millions to the turnover of the Company,
which included Imports of Rs.346.37 millions, domestic trade of Rs. 244.17
million besides sale of power amounting to Rs. 0.12 million, generated at the
15 MW wind power farms commissioned in March 2007 in Karnataka.
During the year 2007-08, the group has plans to avail opportunities
emerging out of special trading arrangements such as offset, barter and counter
trade against bulk purchases by the Govt. apart from availing opportunities
emerging in new markets / products for generating additional business revenues
for the Company.
Press Release
Subject
: MR. SANJIV BATRA, CMD MMTC AWARDED “INTERNATIONAL TRADING MAN OF THE YEAR”
Date : August 03, 2007
Mr.
Sanjiv Batra, Chairman and Managing Director, MMTC Limited was today honoured
with “International Trading Man of the Year” Award at the 5th Business Sphere
Conclave Award function in
The
Award was conferred on him by Shri Oscar Fernandes, Minister of State for
Labour & Employment in the presence of His Excellency Dr. A.R. Kidwai,
Governor of Haryana, Dr. Bhisham Narain Singh, Former Governor and Cabinet
Minister, Shri Mangat Ram Singhal, Minister of Industries, Labour, Employment,
Govt. of Delhi, Shri G.K Gupta, President FIEO, Mr. Sanjay Bhatia, President
PHDCCI and G.R. Khatter, Editor-in-Chief Business Sphere.
The
award was given to leading business persons heading organizations which are
number one in their respective fields, based on last three years’ growth rate,
annual turnover, quality of products, exports, net sales, net profits, increase
in productivity, return to shareholders and a host of other parameters, in
particular performance of previous year.
MMTC,
During
April – June, 2007 MMTC recorded its highest ever first quarter turnover of
Rs.6079 millions, which is 11% higher than the performance during
corresponding quarter April – June, 2006. This turnover figure includes export
of Rs.7460.000 millions, import of Rs.50930.000 millions and domestic trade of
Rs.2400.000 millions. During the first quarter of 2007-08 MMTC also achieved highest
ever-quarterly net profit (after tax) of Rs.389.3000 millions.
Subject : MMTC HIGHEST EVER NET PROFIT IN ANY QUARTER
Date : August 02, 2007
MMTC,
MMTC’s
export performance during April-June 2007 at Rs. 7460.000 millions witnessed an
increase of 7% over the performance during the corresponding period of last
year. The company also registered import revenues of Rs. 50930.000 millions,
which is about 14% higher than the corresponding performance during the last
fiscal. MMTC also registered a domestic trade performance of Rs.2400.000
millions during April-June 2007.
MMTC’s
initiatives to enhance operating efficiencies, for controlling operating costs
and prudent fund management enabled it to achieve its highest ever quarterly net profit (after tax) of Rs. 389.300 crore
which is about 17% higher than the net profit earned during April- June 2006.
During
the quarter ended June 2007, MMTC – a Company with net worth of over Rs.
9000.000 crore and zero long-term debts, has acheived earnings of Rs. 7.79 per
share, which on an annualized basis works out to Rs. 31.16 per share of face
value Rs. 10 each.
While
announcing the results for the April-June 2007 quarter in the Board meeting
held on 24th July 2007, Shri Sanjiv Batra CMD MMTC attributed the improved
performance to aggressive marketing strategies focused on expanding the market
and product profile, besides consolidating core areas of competencies. Shri
Batra further reiterated MMTC’s dedication to aggressively pursue its efforts
for achieving consistent growth in future to provide sustainable returns to
stakeholders.
Subject : MMTC RECORDS HIGHEST EVER TOPLINE AND BOTTOM LINE –
CROSSES Rs. 23,000 CRORE MARK
Date : May 01, 2007
MMTC,
the largest international trading company of
2.
During the period, MMTC posted net profit after tax at Rs. 12590.0000 millions,
which is the highest ever, net profits generated by MMTC since its inception in
1963. The company’s net worth rose to a level of over Rs. 9400.000 millions,
with zero long-term debts. The earnings per share were Rs. 251.8 per share of
face value Rs. 10/- each.
3.
While announcing the financial results for the year 2006-07 in the company’s Board
meeting held on 30.4.07, Shri Sanjiv Batra, CMD, MMTC attributed MMTC’s
commendable performance to the success of strategic initiatives taken by the
company reflecting the value creation through effective combination of goods,
services and investment. The broad based growth in all business lines, debt
free capital structure with adequate cash reserves and a sound net worth
provided robust base for company’s future growth.
4.
MMTC has recently commissioned 15 MW wind farms in Karnataka, which have started
producing electricity. MMTC has also drawn ambitious business plans to expand
its role as a trade organizer and facilitator by venturing into newer areas
such as free trade warehousing zones, development of a cold chain, setting up
of pellatization plant(s), entering into long-term strategic alliances for
energy inputs and enlarging existing franchisee network to provide outlets for
its ‘SANCHI’ brand silverware besides entering into iron ore and coal mining.
The company would continue to pursue these efforts for achieving consistent
growth in future and strengthen its base further, so as to provide value added
services and sustainable returns to its stakeholders.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.91 |
|
|
1 |
Rs.79.88 |
|
Euro |
1 |
Rs.55.88 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|