MIRA
INFORM REPORT
|
Report Date : |
24.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MMTC LIMITED |
|
|
|
|
Registered Office : |
Core -1, Scope
Complex, 7 Institutional Area, Lodhi Road, New Delhi – 110 003 |
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|
Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.09.1963 |
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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 |
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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, Lodhi Road, New Delhi – 110 003, INDIA |
|
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 1 : |
Express
Building, 2nd Floor, 9-10 Bahadurshah Zafar Marg, New Delhi – 110
002, India |
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Fax No.: |
91-11-2331 8593 |
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E-Mail : |
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Regional
Office 2 : |
Mittal Tower, 2nd
Floor, `A/B’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India |
|
Fax No.: |
91-22-2204 5034 |
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E-Mail : |
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Regional
Office 3 : |
Ruby House, 4th
/ 5th Floor, 8 India Exchange Place, Kolkata – 700 001, West
Bengal, India |
|
Fax No.: |
91-33-2242 1292 |
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E-Mail : |
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Regional
Office 4 : |
No. 7, Chennai
House, Esplanade, Chennai – 600 011, Tamilnadu, India |
|
Fax No.: |
91-44-2534 0559 |
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E-Mail : |
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Regional
Office 5 : |
BWSSB Building,
IV Floor, CBAB Complex, Cauvery Bhawan, Kempegowda Road, Bangalore – 560
009, Karnataka, India |
|
Fax No.: |
91-80-2227 2043 |
|
E-Mail : |
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Regional
Office 6 : |
Colaco Building,
Swatantra Path, Vasco-De-Gama, Goa – 403 802, INDIA |
|
Fax No.: |
91-834-513 283 |
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|
|
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Regional
Office 7 : |
Alok Bharati
Complex, Shahid Nagar, Bhubaneshwar – 751 007, India |
|
Fax No.: |
91-674-2510 847 |
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E-Mail : |
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Regional
Office 8 : |
Budha Bawanam, 7th
Floor, Near Boats Club, Municipal Complex, M. G. Road, Secunderabad – 500
003, Hyderabad, Andhra Pradesh, India |
|
Fax No.: |
91-40-2846 943 |
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E-Mail : |
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Regional
Office 9 : |
2 Nagindas
Chambers, Usmanpura, Ashram Road, Ahmedabad – 380 014, Gujarat, India |
|
Fax No.: |
91-79-2754 3739 |
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E-Mail : |
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Regional Office 10 : |
MMTC Bhawan,
Port Area, Vishakhapatnam – 530 035 (Vizag), Andhra Pradesh, India |
|
Fax No.: |
91-891-2561 761 |
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|
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Regional
Office 11 : |
Red Cross Road,
Main Road, P. B. No. 60, Satyanarayanpet, Bellary – 583 103 |
|
Fax No.: |
91-8392-2742 78 |
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Regional
Office 12 : |
Nalda, P. O.
Barbil District, Keonjhar, Barbil, Nalda |
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Fax No.: |
91-6767-2305 80 |
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Regional
Office 13 : |
Indore, Victory
Chamber, 3F, 4A, Ratlam Kothi, AB Road, Indore – 462 009, Madhya Pradesh,
India |
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E-Mail : |
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Overseas
Office 1 : |
5Fc, YU Building
1-5-7-, Horidomecho, Nihonbashi, Chou-Ku, Tokyo – 103, Japan |
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Fax No.: |
0081-3-3808-2268 |
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E-Mail : |
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Overseas
Office 2 : |
P. O. Box 61177,
Jebel Ali Free Zone, Dubai, U.A.E. |
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Fax No.: |
00971-4-817799) |
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E-Mail : |
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Overseas
Office 3 : |
Also offices at
Amman (Jordan), New York (U.S.A.), Singapore, Berlin (Germany) and Moscow
(Russia) |
DIRECTORS
|
Name : |
Mr. S. D. Kapoor |
|
Designation : |
Chairman and
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 |
|
Designation : |
Director
(Marketing) |
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|
Name : |
Mr. Sanjay Batra |
|
Designation : |
Executive
Director |
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|
Name : |
Mr. A. N. Tiwari |
|
Designation : |
Director |
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|
Name : |
Mr. Vijay Bansal |
|
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 and 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 |
|
Designation: |
Executive
Officio Part Time Director (w.e.f. 10.08.2004) |
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|
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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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|
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|
Name: |
Mr. Sanjiv Batra |
|
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 |
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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 |
|
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 |
|
Designation: |
Senior
Executives Director |
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|
Name: |
Mr. N K Chauhan |
|
Designation: |
Senior
Executives Director |
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|
Name: |
Mr. Lekh Chand |
|
Designation: |
Senior
Executives Director |
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|
Name: |
Mr. C H Rao |
|
Designation: |
Senior
Executives Director |
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|
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|
Name: |
Mr. Sunir
Khurana |
|
Designation: |
Senior
Executives Director |
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|
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|
Name: |
Mr. Ashish
Majumdar |
|
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 |
|
Shareholding of
Promoter and Promoter Group 2 |
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|
Indian |
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Central Government / State Government |
49665600 |
99.3312% |
|
Public Shareholding 3 |
|
|
|
Mutual Funds / UTI |
327031 |
0.6631% |
|
Non –
Institutions |
|
|
|
Bodies Corporate |
1904 |
0.0008% |
|
Individuals – Individual shareholders holding nominal share capital up to Rs.0.100
million |
5456 |
0.0049% |
|
Any Other (specify) |
|
|
|
Non Resident Indians (Repat) |
9 |
0.00 |
|
Non Resident Indians (Non Repat) |
|
|
|
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 |
||||||||
|
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. ·
New Zealand |
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Imports : |
|
||||||||
|
Products : |
·
Iron Ore ·
Agro products ·
Rice ·
Wheat ·
Edible Oil ·
Pulses ·
Sugar |
||||||||
|
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. ·
Australia. |
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GENERAL
INFORMATION
|
No. of Employees : |
2062 |
|
|
|
|
Bankers : |
·
State Bank
of India ·
Canara Bank ·
Indian Bank ·
Indian
Overseas Bank ·
Oriental
Bank of Commerce ·
State Bank
of Hyderabad ·
Dena Bank ·
Syndicate
Bank ·
Vysya Bank
Limited ·
IndusInd
Bank ·
Bank of
Baroda ·
Central
Bank of India ·
Deutsche
Bank ·
HDFC Bank ·
Punjab
National Bank ·
Bank of
India ·
Bank of
Maharashtra ·
State Bank
of Bikaner and Jaipur ·
Vijaya Bank ·
IDBI Bank ·
Bank of
America |
|
|
|
|
Banking Relations
: |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
S N Dhawan and Company Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries : |
·
MMTC
Transnational Pte Limited 20 Cecel Street, 14-03/04
The Exchange, Singapore – 049705 Fax No. 0065-538 5316 E-Mail mtplsing@signet.com.sg ·
MMTC
Transnational (Moscow) Pte Limited Kransopresnenskaya Nab. 12, Room No. 424, Moscow – 123 609, Russia |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
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 |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
Sales Turnover |
60790.000 |
59200.200 |
48848.600 |
|
Other Income |
44.200 |
48.900 |
0.000 |
|
Total Income |
60834.200 |
59249.100 |
48848.600 |
|
Total Expenditure |
60450.900 |
58763.800 |
48266.400 |
|
Operating Profit |
383.300 |
485.300 |
582.200 |
|
Interest |
(129.100) |
(100.300) |
(192.200) |
|
Gross Profit |
512.400 |
585.600 |
774.400 |
|
Depreciation |
23.100 |
41.300 |
32.700 |
|
Tax |
100.000 |
170.000 |
350.000 |
|
Reported PAT |
389.300 |
374.300 |
391.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
|
0.95 |
0.51 |
0.50 |
|
Long Term Debt Equity Ratio |
|
0.12 |
0.000 |
0.00 |
|
Current Ratio |
|
1.23 |
1.13 |
1.10 |
|
TURNOVER
RATIOS |
|
|
|
|
|
Fixed Assets |
|
170.01 |
226.04 |
213.72 |
|
Inventory |
|
109.39 |
91.07 |
110.72 |
|
Debtors |
|
25.14 |
23.05 |
26.55 |
|
Interest Cover Ratio |
|
3.65 |
3.03 |
1.62 |
|
Operating Profit Margin (%) |
|
1.15 |
1.55 |
3.08 |
|
Profit Before Interest and Tax Margin (%) |
|
1.12 |
1.53 |
3.05 |
|
Cash Profit Margin (%) |
|
0.58 |
0.69 |
0.74 |
|
Adjusted Net Profit Margin (%) |
|
0.54 |
0.66 |
0.71 |
|
Return on Capital Employed (%) |
|
15.59 |
20.98 |
43.85 |
|
Return on Net Worth (%) |
|
14.78 |
13.65 |
15.04 |
LOCAL AGENCY
FURTHER INFORMATION
CORPORATE
PROFILE:
India's
Largest Trading Giant
Established in 1963, Subject, one of the two highest
foreign exchange earner for India, is a leading international trading company
with a turnover of over US$ 3 billion.
It is the largest international trading company of India
and the first Public Sector Enterprise to be accorded the status of "FIVE
STAR EXPORT HOUSE" by Govt of India for long standing contribution to
exports.
Subject is the largest non-oil importer in India.
Subject diverse trade activities encompass Third Country
Trade, Joint Ventures, Link Deals - all modern day tools of international trading.
Its vast international trade network, which includes a
wholly owned international subsidiary in Singapore, spans almost in all
countries in Asia, Europe, Africa, Oceania and Americas, giving MMTC a global
market coverage.
India's
Leading Exporter of Minerals
Subject is major global player in the minerals trade and is
the single largest exporter of minerals from India. With its comprehensive
infrastructural expertise to handle minerals, the company provides full
logistic support from procurement, quality control to guaranteed timely
deliveries of minerals from different ports, through a wide network of
regional and port offices in India, as well as international subsidiary.
Subject has won the top export award from Chemicals and
Allied Products Export Promotion Council (CAPEXIL) as the largest exporter of
minerals from India for the thirteenth year in a row.
One
Of The World's Largest Buyer Of Fertilizers
As a leading player in fertilizers and fertilizer raw
material, Subject has become a major fertilizer marketing company in India,
through planned forward integration of its import activities with the direct
marketing of Urea, DAP, MOP, Sulphur, Rock Phosphate, SSP and other farming
and agricultural inputs.
The
Single Largest Bullion Trader In The Indian Subcontinent
Subject is the largest importer of gold and silver in the
Indian sub continent, handling about 100 MT of gold and 500 MT of silver
annually. Subject has opened a retail jewellery showroom at Maker Bhawan in
Mumbai. Subject supplies branded hallmarked gold and studded jewellery.
Subject has also opened a DUTY FREE jewellery store in the Departure Lounge at
Sahar International Airport, Mumbai, India. An assay and hallmarking unit has
been set up at New Delhi for testing the purity of gold and gold articles in
accordance with the internationally accepted fire assay method.
Besides organizing major jewellery exhibitions abroad,
exclusively, Subject is keen to set up manufacturing and joint ventures for
modern jewellery in association with leading names in the international
jewellery trade as well as marketing.
Subject supplies gold on loan basis to the bullion traders
and jewellers in India at international rate of interest to help jewellers and
artisans to overcome their working capital requirement.
Subject retailing network extends from a jewellery showroom at Maker Bhawan, 4
duty free shops at Mumbai (2), Chennai (1), Thiruvananthapuram (1),
International airports and sales counter at its Jhandewalan office in New
Delhi.
The
Biggest Importer Of Non Ferrous Metals And Industrial Raw Material To India
Subject is India's largest seller of imported non-ferrous
metals viz. copper, aluminium, zinc, lead, tin and nickel. It also sells
imported minor metals like magnesium, antimony, silicon and mercury, as also
industrial raw materials like asbestos and also steel and its products.
Subject imports quality products conforming to international specifications
like ASTM or BSS or LME approved brands.
Major institutional customers of subject in India are
accredited with ISO-9002 status. Subject sources its metals from empanelled
suppliers including producers and traders throughout the world.
Subject is a proud winner of gold trophy for exports of
Engineering and Metallurgial product in non-SSI Sector and also awarded the
All India Trophy for highest export in the category of crime matel by EEPC.
Growing
Interest in Agro Products Worldwide
Subject is amongst the leading Indian exporters and
importers of agro products. The company's bulk exports include commodities
such as rice, wheat, wheat flour, soyameal, pulses, sugar, processed foods and
plantation products like tea, coffee, jute etc.
Subject also undertakes extensive operations in oilseed
extraction, from the procurement of seeds to the production of de-oiled cakes
for export, as well as the production of edible oil for domestic consumption. It
also imports edible oils. Subject has won the gold trophy from FIEO for
highest exports in agritulcture and plantation product in non-SSI Sector.
General
Trading
Subject also handles items like textiles, Mulberry raw
silk, building materials, marine products, chemicals, drugs and
pharmaceuticals, processed foods, hydro carbons, coal and coke.
Information on above can be supplied on request. Subject
also exports engineering products.
An
Integrated Global Trader With Bulk Handling Capabilities
Its comprehensive infrastructure for bulk cargo handling,
with well developed arrangements for rail and road transportation,
warehousing, port and shipping, operations, gives Subject complete control
over trade logistics, both for exports and imports.
The company's countrywide domestic network is spread over
75 regional, sub-regional, port and field offices, warehouses and procurement
centres.
Broadbased
Activities Beyond Trading
Subject progress in the recent past has taken it from
monopoly status to a competitive open market player making a strong thrust
towards broad basing its sphere of activities, while consolidating its core
areas of business.
To create synergy between its manufacturing, trading and
technology partners and to bring optimum efficiency and expertise to its
operations worldwide, Subject has promoted along with government of Orissa, a
million tonnes capacity Iron and Steel plant and a 0.8 million tonne capacity
Coke Oven battery with by product recovery plant and a captive power plant of
55 MW capacity.
Support
Services
Subject lays emphasis on human resources development and
related activities. Several training programmes are conducted to upgrade
managerial skills in the latest developments in trade management, export
marketing, general management.
Computerization
Subject has a Systems and ERP Division comprising a highly
professional team to cope with the highly competitive environment. Subject
operational offices are all equipped with modern computing tools. ERP has been
implemented. A user friendly intranet based Knowledge Management Solution has
been made available to officials.
Social
and Welfare Activities
Subject social and welfare activities promote welfare of
the employees through various schemes like sports activities, liberal loan
facilities like house building advance, conveyance loan, house hold loan,
marriage advance, etc. Subject also provides subsidized canteen facilities,
medical treatment, and residential accommodation in some of the major cities
for its employees. Subject also takes care of employees' families through
merit scholarship, tuition fee reimbursement, etc.
Subject is committed towards environmental upkeepment
through aforestation in the mining areas, development of tribal areas and infrastructure
development through rail links, port facilities, etc.
Network
Of Offices
Its vast international trade network, includes One wholly
owned international subsidiary in Singapore- MMTC Transnational Pte. Limited
(MTPL)
13
Regional offices
· East Zone : Kolkata, Bhubaneshwar
· West Zone : Mumbai, Goa, Ahmedabad
· North Zone : Delhi, Jhandewalan (Delhi), Jaipur
· South Zone : Bangalore, Bellary, Chennai, Hyderabad, Vizag
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
AND RANKINGS
Following Awards and Rankings were bestowed on the Company
during 2006-07.
1. Top Indian Company in the Trading Sector for the D and B - American Express
Corporate Awards 2006
2. NIRYAT SHIROMANI PURASKAR to CMD and Gold Medal to MMTC Limited 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 and 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 and Management New
Delhi.
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 "India's Corporate Giants" released in December 2006.
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 Private. Limited Singapore (MTPL) was incorporated in October 1994 under the laws of Singapore with a share capital of US$ 1 million. During the year 2006-07, MTPL achieved its highest ever business turnover of USD 545 million registering a growth of 53% over the corresponding performance last fiscal.
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 and Auditor's
report are attached herewith.
MMTC'S PROMOTED PROJECT-Neelachal Ispat
Nigam Limited (NINL)
As a strategy to diversify and add value to trading operations, the company has set up Neelachal Ispat Nigam Limited (NINL) - an iron and steel plant of 1.1 million tonnes capacity, 0.8 million tonne coke ovens and by product unit with captive power plant' jointly with Government of Orissa with total capital expenditure of nearly Rs. 20000.000 millions. 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 89.400.
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 And 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 and 136 workers. This manpower strength includes 36
officers, 171 staff and 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 and 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 and 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 and 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 and trade growth reported by India and China. According to WTO economists, global risks in financial and property markets and large trade imbalances in goods and services meant increased uncertainty in 2007 and raised the prospect of weaker economic and trade expansion in the coming year
During the year 2006-07, Indian economy grew by 9.4% against 9% in the previous year as robust growth in manufacturing and services sector more than made up for a slowdown in agricultural and construction sector. During the year India's merchandise export reached a level of USD 124.6 billion showing a growth rate of 21% India's merchandize imports at USD 181.3 billion during 2006-07 were higher by 26.4% over the previous 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 and 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 and
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 and 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 and 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 China.
During the year 2006-07 China, Japan and South Korea were
the key markets where MMTC exported mineral products.
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 and steel making raw material from India has increased significantly in the recent past and the opportunities exist to expand it further in future. The demand is being driven by China, which has emerged as the largest buyer of Indian Iron ore. However the demand from traditional buyers like Japan and South Korea is likely to continue to remain stable on sustainable basis. Also MMTC has secured long-term purchase commitments for five years beginning FY 2006-07 from Japan and South Korea and memoranda of agreements have been signed with them for 2007-08. Similarly, higher exports to China are expected to be achieved against MMTC' s long-term contracts as also under spot sales.
Precious Metals,
Gems and Jewellery
The Precious Metals, Gems and 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 and 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 and 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 and 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 and 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 and 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 India leading
to increased shortfall between consumption vis-a-vis indigenous production
resulting in increased volume of imports. For the year 2007-08, the group has
planned for further increase in business volumes by tapping these emerging
opportunities which will be further increased due to enhanced focus of
government on agricultural sector besides normal monsoon expected during the
current year.
Coal and Hydrocarbons
The Coal and 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 and coke to power, steel, fertilizer, chemical, cement and 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 : MMTC HIGHEST EVER TOPLINE & BOTTOMLINE
Date : October 30, 2007
MMTC, India’s largest international trading company with net worth of over Rs. 9000.000 Millions and zero long-term debts has reported its highest ever half yearly turnover since its inception, of Rs. 119.990 Millions during April-September 2007 which includes its best ever export performance at Rs. 16910.000 Millions - increase of 16% over the performance during the corresponding period of last year and highest Import performance of Rs. 97790.000 Millions - 9% higher than the corresponding performance during the last fiscal.
MMTC’s initiatives to enhance operating efficiencies, controlling operating costs and prudent fund management enabled it to achieve its highest ever half yearly trading profit of Rs. 1530.000 Millions registering a substantial growth of 52% over corresponding performance last fiscal. Also the highest ever net profit (after tax) at Rs. 763.600 Millions earned by the company registered an increase of 30% over the net profit earned during April- September 2006.
MMTC attributed this historical performance to success of its aggressive marketing strategies focused on expanding the market and product profile, besides consolidating core areas of competencies. The company has further reiterated its dedication to aggressively pursue its efforts for achieving consistent growth in future to provide sustainable returns to stakeholders.
Subject
: MMTC RECORDS HIGHEST EVER TRADE TURNOVER AND PROFITS, PAYS 25% FINAL
DIVIDEND FOR 2006-07
Date
: October 24, 2007
1. A cheque for Rs.124.200 Millions was presented today to
Shri Kamal Nath, Hon’ble Minister for Commerce and Industry by Shri Sanjiv
Batra, CMD, MMTC Limited towards 25% final dividend for fiscal 2006-07. MMTC,
the largest international trading company of India, at its 44th Annual General
Meeting held on 27/9/2007, had declared dividend pay out of 50% for 2006-07,
which included interim dividend of 25% already paid to the shareholders in
March 2007.
2. During 2006-07 MMTC exhibited outstanding performance by
achieving its Highest ever trade turnover of Rs. 233.020 Millions thereby
registering a growth of 42% over the previous year’s performance. This
best ever business turnover since MMTC's inception in 1963 includes Exports
of Rs. 34130.000 Millions and imports of Rs. 186070.000 Millions -
superlative performance levels over the last 44 years – with the balance
accounting for by domestic trading.
3. The net profits earned by the company reached a new peak
of Rs.1270.000 Millions during the year. Highest ever profits, despite
pressure on margin, was realized through aggressive marketing strategies,
diversification in new areas, better fund management and prudent tax
planning. With this, the company has realized best ever earning per
share of Rs. 25.36 on a face value of Rs.10. The company has taken several
strategic initiatives to improve logistics, service quality and other aspects
of operational efficiency so as to provide long-term sustainability to the
future operations.
4. After providing for dividends and transfer of surplus to
general reserves, MMTC’s net worth has increased to over Rs.8800.000 Millions
with ‘zero’ long-term debt. With this net worth and projected revenue,
MMTC has set out ambitious plans to promote many new projects in future.
5. Sh. Sanjiv Batra CMD MMTC stated that in identifying
areas of investment, MMTC has maintained its focus on its role as a trade
organizer and trade facilitator. In the area of logistics, MMTC has
already promoted development of a temporary jetty at Ennore port for loading
iron ore to decongest Chennai port. MMTC also intend to acquire an equity
stake in the consortium, which has undertaken the project for construction of
a permanent iron ore-loading berth at Ennore in lieu of the temporary jetty.
To facilitate promotion of two-way trade, MMTC is progressing satisfactorily
on setting up of free trade and warehousing zones on lines similar to Special
Economic Zones, at certain identified locations in India. As part of the FTWZ
initiative, in order to provide non-ferrous metals supplies at the customers’
doorstep, MMTC also proposes to open an LME (London Metal Exchange) warehouse
in India. MMTC has already invested in five railway rakes under “Own your
Wagons” scheme of Indian Railways, which has helped MMTC to ease to some
extent the logistics issues related to movement of goods from producing areas
to ports.
6. Diversifying into the area of clean, non-conventional
and renewable energy sources MMTC has also set up a 15 MW Wind Energy farm in
the state of Karnataka, which has since been commissioned earlier this year.
The plant is already generating power, which is being sold to the state
electricity grid by MMTC.
7. Sh. Batra further stated that the other strategic
initiatives to enhance MMTC’s future sustainability include, in broad terms,
setting up of a commodity exchange jointly with India Bulls, joining hands
with an international producer as a joint venture partner for setting 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 plans
to set up in partnership with a leading Indian company, a chain of retail
stores at various cities in India for medallions, jewellery and its homegrown
brand of ’SANCHI’ silverware. As a measure of investing in mining
infrastructure MMTC had applied for and has been allotted a coalmine in
Jharkhand having estimated reserves of about 700 million MT, exploration of
which would be commenced soon. MMTC has also applied for iron ore mining
leases which will be a precursor to MMTC’s setting up of an iron ore
pelletization plant for adding value to iron ore sourced from such mines.
8. Sh Batra also stated that such strategic initiatives
effectively integrating vertically, both backwards and forwards, to encompass
the entire gamut of the product process from the stage of manufacture to
distribution to the ultimate consumer, shall continue to be undertaken in the
future also to enhance MMTC’s competitive position and to maintain the current
pre-eminent position being enjoyed in its fields of business.
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 New Delhi.
The
Award was conferred on him by Shri Oscar Fernandes, Minister of State for
Labour and 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,
India’s largest international trading house recorded a 42% growth in business
volume during fiscal 2006-07. Against a turnover of Rs. 163620.000 millions in
2005-06, it achieved its highest ever turnover of Rs. 233020.000 millions
during fiscal 2006-07 which includes best ever export of Rs. 34130.000
millions, all time high import of Rs. 188080.000 millions and domestic trade
at Rs. 12810.000 millions. During the period, MMTC posted net profit after tax
at Rs. 12.8.0000 millions, which is the highest ever generated by MMTC since
its inception in 1963 and net worth of over Rs. 9000.000 millions coupled with
zero long term debt.
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 RECORDS HIGHEST EVER NET PROFIT IN ANY QUARTER
Date :
August 02, 2007
MMTC,
India’s largest international trading company has reported its highest ever first quarter turnover of Rs.
60790.000 millions, which is 11% higher than the corresponding
performance during April-June 2006 quarter. MMTC is India’s largest exporter
of Minerals, leading exporter/ importer of Agri commodities, single largest
importer/supplier of Metals and Bullion and a major player in Coal imports in
the country. The company commands extensive market coverage in over 65
countries across the globe and its domestic network is spread across 76
offices, warehouses and retail outlets.
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. 3893.000 millions
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.
90000.000 millions 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. 230000.000
millions MARK
Date :
May 01, 2007
MMTC,
the largest international trading company of India, has recorded 42% growth in
business volumes during fiscal 2006-07. Against a turnover of Rs. 163620.000
millions recorded during 2005-06 MMTC achieved its highest ever turnover of
Rs. 232050.000 millions during fiscal year 2006-07. The total turnover of Rs.
232050.000 millions includes best ever exports of Rs. 3428 millions, all time
high imports of Rs. 184430.000 millions and domestic trade at Rs. 13340.000
millions.
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, India Prisons Service,
Interpol, etc.
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.40.04 |
|
UK Pound |
1 |
Rs.79.11 |
|
Euro |
1 |
Rs.63.44 |
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 |
|