553rdANNUALREPORT2015-16

Dear Shareholders,

On behalf of the Board of Directors, I extend a warm

welcome to all of you to the 53rd Annual General Meeting

of your Company. I also want to thank you for your

support in our endeavor to make this company a leading

public sector trader in the country.

The Global economic environment during the years

2015-16 has been full of challenges, both imports and

exports in the country have been showing a declining

trend. Amidst this challenging business environment and

uncertainties of global trade because of declining

demand, slowdown in China and Europe, geo-political

tensions, high interest rates & high volatility in

currencies., it has been a challenge to maintain the top

and bottom-line of your company during the past year.

With many pro-business initiatives of Government such

as implementation of GST, investment in infrastructure

projects, incentives for exports, along with the expected

improvement in global demand, your company is poised

for growth during forthcoming years. All necessary

measures are being taken towards achieving the targeted

goals during the current year.

Your Company has successfully withstood the ongoing

challenging International business environment and has

registered a net profit of `54.86 crores as against a profit

of `47.91 crores last year, an increase of 15 % over FY

2014-15. The business turnover was `12503.43 crores

which includes Exports of `672.57 crores, Imports of

`10295.85 crores and domestic trade of `1492.05 crores.

The turnover of various business segments has been

Minerals - ̀ 476 crores, the Precious Metals - ̀ 7050 crores,

Agro Products - `356 crores, Metals - `558 crores,

Fertilizer & Chemicals - `2884 crores, Coal &

Hydrocarbons - `1126 crores. The net worth of your

company increased to `1378 crores from `1359 crores in

the previous year.

The company has been consistently rewarding the

shareholders with good dividend and has declared a

dividend of 30 % on the paid up capital during current

year, which is the highest during last six years period.

Performance

Performance at a Glance` in million

For the financial year ending 31st March 2016 2015 2014

Total Sales 124604 182415 250745

which includes-

Exports 6726 23007 41270

Imports 102958 145302 187135

Domestic 14920 14106 22340

Trading Profit 1297 2079 3456

Income from Other Sources 2179 1949 2328

Profit After Tax 549 479 186

At Year End

Total Assets 38003 59509 46970

Net Worth 13779 13592 13419

Per Share (Rupees)

Earnings 0.55 0.48 0.19

Dividend 0.30 0.25 0.15

Net Worth to Share Capital (times) 13.78 13.59 13.42

Profit after Tax to Capital Employed (%) 7.42 6.41 2.37

Profit after Tax to Net Worth (%) 3.98 3.53 1.39

Sales per Employee (` Million) 93.41 126.77 163.89

Chairman's Statement

54

553rdANNUALREPORT2015-16

Fund; Installation of hand pumps in Primary/Secondary

schools; setting up a scheme of scholarships/financial

assistance for meritorious students from socially and

economically weak backgrounds studying in Govt.

schools/colleges; Support to Music Therapy Trust for

providing Music Therapy to people with disabilities

through its Outreach Programme and Financial

assistance to Amar Jyoti Charitable Trust for its school for

disabled children to purchase school bags.

Your company has been taking initiatives towards

strengthening its commitment towards principles of

sound corporate governance. It has met this objective by

strengthening transparency and disclosure norms;

putting in place an effective framework of checks and

balances for efficient functioning; having a Whistle

Blower Policy and a Risk Management policy;

Independent external monitor programme of

Transparency International, RTI and numerous other

steps.

Your Company aims to be amongst the largest trading

companies in the world by achieving excellence in all its

activities through satisfaction of shareholders, customers,

suppliers, employees and society. The focus is on existing

core competency areas and also new business

diversification with a resolve of improving the top and

Corporate Governance

Vision for Future

bottom-line. With the help of a committed workforce,

your Company is fully equipped to move swiftly forward

by delivering exceptional outcomes to its stakeholders in

its overall aim of building a strong and robust future.

With the positive signals from Government on multiple

policy fronts, it is certain that the future business

environment and international trade of the country and

your Company w i l l improve subs tan t i a l l y.

Implementation of GST and other far reaching policy

initiatives would give further boost to the business of

your company

I take this opportunity, to express my gratitude to all the

shareholders of the Company for their continued trust in

the Board of Directors and the Management of the

Company. On behalf of the Company, I would also like to

thank all our Vendors, Customers and Business Associates

who have extended their support in the development and

growth of your Company. Before I conclude, I wish to

thank the Government especially Ministry of Commerce

and Industry, Finance, Agriculture, Consumer Affairs,

Railways, Ports, NMDC, Banks, and all other stakeholders

for their co-operation and support.

sd/-

(Ved Prakash)

Chairman and Managing Director

Dated 28.09.2016

Acknowledgements

Business Diversification Initiatives

While traditionally, the company's role was limited to

being a trade logistics and facilitator, your company has

been regularly working towards realigning its business

strategies to capitalize on the emerging new

opportunities in the complex international trading

environment. Some of the value multiplier initiatives of

the company taken during FY2015-16 that are expected

to yield rich dividends in times to come are production

and marketing of the India's first Sovereign Gold Coin

launched by Honourable Prime Minister as part of the

"make in India" initiative of Government of India;

Commencement of operations of Free Trade

Warehousing Zone(FTWZ) at Kandla, Gujarat;

Commissioning of steel making facility of NINL; entering

into Long term Agreement for supply of Iron ore to

Japanese and Korean Steel Mills; setting up a new office in

Guwahati for capitalizing on the opportunities of

business from North-East States; Importing pulses on

behalf of Government of India and create a buffer stock of

imported pulses as part of food security & Price

stabilization measures; diversification of fertilizers basket

for which MoUs have been inked with leading producers

of fertilizers and fertilizer raw material; setting up new

business divisions for business diversification.

Development of trade with African nations, Russia &

other partner countries is an ongoing initiative to add

value to our operations.

Your Company's steel plant Neelachal Ispat Nigam

Limited (NINL), promoted jointly with Govt. of Orissa, has

been granted iron ore mining lease with an estimated

reserves of 110 million tones, which is at an advanced

stage of statutory environmental clearances. The Phase-

2 of NINL has now commenced production of steel billets.

NINL achieved a turnover of Rs.1086 crores during 2015-

16, despite negative conditions in the steel sector. With

the steel making facility getting stabilized and

commencement of iron ore mining expected by this year

end, the performance of NINL would improve

substantially. Our gold and silver refinery MMTC-PAMP

India Private Limited (MPIPL), which is India's first LBMA

accredited refiner for precious metals, has achieved a

turnover of `24560 Crores and a Profit after tax of `59

Crores. Your company's promoted 15 MW capacity Wind

Mill project achieved the full return of capital on "real cash

receipt basis" in February, 2015.

Subsidiary Company

Technology and Standardisation

Human Resource Management

Corporate Social Responsibility and Sustainable

Development

During the year, MMTC Transnational Pte. Ltd. (MTPL),

Singapore a 100% subsidiary of your company, achieved

a business turnover of US$ 108.28 million. The net worth

of MTPL stood at US $ 15.36 million as on 31.03.2016.

Your company has always recognized that in today's

dynamic business environment for achieving long term

sustainable growth, it is essential to harness the power of

IT systems and development and implementation of

sunrise technologies. Some of the initiatives taken by

your company which are working smoothly include ERP,

web enabled IGC management, customer interface and

feedback, public grievance lodging monitoring system,

facility of electronic filing of documents, development of

employee portal to meet all employee needs, e-tender

system with e-payment facility, e-voting for AGM are all

opening up new opportunities for sustainable growth.

In your company, Human Resource Management (HRM)

has been structured in such a way that it motivates its

employees, maximizes their performance, and

encourages employee empowerment and the generation

of innovative ideas and fair distribution of rewards.

Cordial and harmonious industrial relations are

maintained in the Company. No man days were lost due

to any industrial unrest and regular meetings are held

with the Unions / Associations of Officers, Staff and SC/ST

Employees under Joint Consultative Machinery.

MMTC has always been a responsible Corporate

committed to fulfilling its CSR obligations. The thrust

areas identified for this purpose include health and

medical care , sanitat ion, educat ion/ l i teracy

enhancement , community development and

rehabilitation measures, environment protection,

conservation of natural resources, infrastructure and rural

development etc. Some of the CSR activities undertaken

during the year were - Creating of Sanitation and drinking

water facilities in Govt. High Schools, Odisha under

Swachh Bharat Mission; Contribution to Clean Ganga

76

553rdANNUALREPORT2015-16

Fund; Installation of hand pumps in Primary/Secondary

schools; setting up a scheme of scholarships/financial

assistance for meritorious students from socially and

economically weak backgrounds studying in Govt.

schools/colleges; Support to Music Therapy Trust for

providing Music Therapy to people with disabilities

through its Outreach Programme and Financial

assistance to Amar Jyoti Charitable Trust for its school for

disabled children to purchase school bags.

Your company has been taking initiatives towards

strengthening its commitment towards principles of

sound corporate governance. It has met this objective by

strengthening transparency and disclosure norms;

putting in place an effective framework of checks and

balances for efficient functioning; having a Whistle

Blower Policy and a Risk Management policy;

Independent external monitor programme of

Transparency International, RTI and numerous other

steps.

Your Company aims to be amongst the largest trading

companies in the world by achieving excellence in all its

activities through satisfaction of shareholders, customers,

suppliers, employees and society. The focus is on existing

core competency areas and also new business

diversification with a resolve of improving the top and

Corporate Governance

Vision for Future

bottom-line. With the help of a committed workforce,

your Company is fully equipped to move swiftly forward

by delivering exceptional outcomes to its stakeholders in

its overall aim of building a strong and robust future.

With the positive signals from Government on multiple

policy fronts, it is certain that the future business

environment and international trade of the country and

your Company w i l l improve subs tan t i a l l y.

Implementation of GST and other far reaching policy

initiatives would give further boost to the business of

your company

I take this opportunity, to express my gratitude to all the

shareholders of the Company for their continued trust in

the Board of Directors and the Management of the

Company. On behalf of the Company, I would also like to

thank all our Vendors, Customers and Business Associates

who have extended their support in the development and

growth of your Company. Before I conclude, I wish to

thank the Government especially Ministry of Commerce

and Industry, Finance, Agriculture, Consumer Affairs,

Railways, Ports, NMDC, Banks, and all other stakeholders

for their co-operation and support.

sd/-

(Ved Prakash)

Chairman and Managing Director

Dated 28.09.2016

Acknowledgements

Business Diversification Initiatives

While traditionally, the company's role was limited to

being a trade logistics and facilitator, your company has

been regularly working towards realigning its business

strategies to capitalize on the emerging new

opportunities in the complex international trading

environment. Some of the value multiplier initiatives of

the company taken during FY2015-16 that are expected

to yield rich dividends in times to come are production

and marketing of the India's first Sovereign Gold Coin

launched by Honourable Prime Minister as part of the

"make in India" initiative of Government of India;

Commencement of operations of Free Trade

Warehousing Zone(FTWZ) at Kandla, Gujarat;

Commissioning of steel making facility of NINL; entering

into Long term Agreement for supply of Iron ore to

Japanese and Korean Steel Mills; setting up a new office in

Guwahati for capitalizing on the opportunities of

business from North-East States; Importing pulses on

behalf of Government of India and create a buffer stock of

imported pulses as part of food security & Price

stabilization measures; diversification of fertilizers basket

for which MoUs have been inked with leading producers

of fertilizers and fertilizer raw material; setting up new

business divisions for business diversification.

Development of trade with African nations, Russia &

other partner countries is an ongoing initiative to add

value to our operations.

Your Company's steel plant Neelachal Ispat Nigam

Limited (NINL), promoted jointly with Govt. of Orissa, has

been granted iron ore mining lease with an estimated

reserves of 110 million tones, which is at an advanced

stage of statutory environmental clearances. The Phase-

2 of NINL has now commenced production of steel billets.

NINL achieved a turnover of Rs.1086 crores during 2015-

16, despite negative conditions in the steel sector. With

the steel making facility getting stabilized and

commencement of iron ore mining expected by this year

end, the performance of NINL would improve

substantially. Our gold and silver refinery MMTC-PAMP

India Private Limited (MPIPL), which is India's first LBMA

accredited refiner for precious metals, has achieved a

turnover of `24560 Crores and a Profit after tax of `59

Crores. Your company's promoted 15 MW capacity Wind

Mill project achieved the full return of capital on "real cash

receipt basis" in February, 2015.

Subsidiary Company

Technology and Standardisation

Human Resource Management

Corporate Social Responsibility and Sustainable

Development

During the year, MMTC Transnational Pte. Ltd. (MTPL),

Singapore a 100% subsidiary of your company, achieved

a business turnover of US$ 108.28 million. The net worth

of MTPL stood at US $ 15.36 million as on 31.03.2016.

Your company has always recognized that in today's

dynamic business environment for achieving long term

sustainable growth, it is essential to harness the power of

IT systems and development and implementation of

sunrise technologies. Some of the initiatives taken by

your company which are working smoothly include ERP,

web enabled IGC management, customer interface and

feedback, public grievance lodging monitoring system,

facility of electronic filing of documents, development of

employee portal to meet all employee needs, e-tender

system with e-payment facility, e-voting for AGM are all

opening up new opportunities for sustainable growth.

In your company, Human Resource Management (HRM)

has been structured in such a way that it motivates its

employees, maximizes their performance, and

encourages employee empowerment and the generation

of innovative ideas and fair distribution of rewards.

Cordial and harmonious industrial relations are

maintained in the Company. No man days were lost due

to any industrial unrest and regular meetings are held

with the Unions / Associations of Officers, Staff and SC/ST

Employees under Joint Consultative Machinery.

MMTC has always been a responsible Corporate

committed to fulfilling its CSR obligations. The thrust

areas identified for this purpose include health and

medical care , sanitat ion, educat ion/ l i teracy

enhancement , community development and

rehabilitation measures, environment protection,

conservation of natural resources, infrastructure and rural

development etc. Some of the CSR activities undertaken

during the year were - Creating of Sanitation and drinking

water facilities in Govt. High Schools, Odisha under

Swachh Bharat Mission; Contribution to Clean Ganga

76