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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