FINANCIAL STRATEGIES OF MMTC LTD.

A CASE STUDY OF MMTC

SUBMITTED TO: MR.DEEPAK DUA DEPUTY GENERAL MANAGER MMTC LTD. NEW DELHI.

SUBMITTED BY: DIVYA SINGH BACHELORS OF BUSINESS ADMINISTRATION ENROLLMENT NO: 04320601709 GURU GOBIND SINGH INDRAPRSATHA UNIVERSITY NEW DELHI.

CHAPTER-1 PROFILE OF THE COMPANY

NAME OF FIRM ADDRESS

: :

MMTC LTD SCOPE Complex 7 Institutional Area, Lodi Road New Delhi, 110003

TEL NO E-MAIL ID WEBSITE

: : :

011-24362200.. mmtc@mmtclimited.com http://www.mmtclimited.com

MMTC LTD IS A NATIONAL COMPANY.

Location and address of the registered office:

Registered Office:

SCOPE Complex, Core-1, 7-Institutional Area, Lodi Road, New Delhi - 110003 Phone : 24362200

Fax : 24360724

Geographical areas of operation: (India)

Hyderabad Kolkata Coimbatore Lucknow Jamshednagar Gandhidham Bellary Chennai Kochi Raipur Jhandewalan Goa Keonjhar District Kakinada Jamnanagar Guwahati Mumbai

1. NATURE OF THE ORGANISATION

1.1ABOUT THE COMPANY: Established in 1963, MMTC, one of the two highest foreign exchange earners for India, is a leading international trading company with a turnover of over US$ 5 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 . MMTC is the largest non-oil importer in India. MMTC's diverse trade activities encompass Third Country Trade, Joint Ventures, and 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 global market coverage

1.2NATURE OF THE ORGANISATION MMTC Limited (MMTC) is an India-based trader of various products such as minerals, metals and precious metals, jewelry, fertilizers, agro products, coal and hydrocarbons, and other commodities. The various agro products traded by the company include wheat, rice, maize, soya bean meal, sugar, edible oil and pulses. MMTC also operates a manufacturing facility, Neelachal Ispat Nigam Limited (NINL), which is engaged in the provision of pig iron and BF coke along with nut coke, coke breeze, crude tar, ammonium sulphate and granulated slag. The company operates a wholly owned subsidiary, MMTC Transnational Pte. Ltd., Singapore (MTPL). The company exports its products to Japan, South Korea, China and Middle East. MMTC is headquartered in New Delhi, India.

1.3BUSINESS OF MMTC Indias leading exporter of Minerals:

MMTC 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. It handles about 120 million tones of material. MMTC 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 sixteenth year in a row. One of the worlds largest buyers of Fertilizers: As a leading player in fertilizers and fertilizer raw material, MMTC 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: MMTC is the largest importer of gold and silver in the Indian sub continent, handling about 250 MT of gold and 800 MT of silver annually. MMTC has opened retail jewellery showroom at in Mumbai and Delhi, It has also opened exclusive jewellery showroom in association of Gitanjali. MMTC supplies branded hallmarked gold and studded jewellery. 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 jewelry exhibitions in India and abroad, exclusively, MMTC is keen to set up manufacturing & joint ventures for modern jewelry in association with leading names in the international jewelers trade as well as marketing. The biggest importer of non ferrous metals and industrial raw material to India:

MMTC is India's largest seller of imported non-ferrous metals viz. copper, aluminum, 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.

Major institutional customers of MMTC in India are accredited with ISO-9002 status. MMTC sources its metals from empanelled suppliers including producers and traders throughout the world.

1.5AWARDS & RANKING: Following Awards and Rankings were conferred during 2008-09:

Gold Trophy for being top Exporter for the Year 2006-07 in Merchant Exporter category by EEPC CAPEXIL highest award for highest export in Minerals and Ores sector for the year 200708, (17th time in a row) Niryat Shree Bronze Trophy for the year 2005-06 presented by the Hon'ble President of India, in January 2009 in the Highest Foreign Exchange Earner category by Federation of Indian Exporters Organisation (FIEO). Top Indian Company in the Trading Sector by Dun & Bradstreet in their rankings 'India's Top 500 companies 2008'. In the same publication ranked 13th based on total income for the year 2007-08. Ranked as the Highest Wealth Creator PSU by Dalal Street Journal. Top ranking in the list of India's top 100 wealth creation companies published by the Times Group and the Economic Times in their publication 'ET500' released in Oct 2008. In the same publication MMTC has been ranked 17th amongst India's biggest companies.

Ranked 4th amongst India's most valuable Public Sector Companies by 'Business Today' in its publication 'BT500' released in November 2008. In the same publication, ranked at 6th place amongst 10 most valuable companies. Ranked 12th in the list of India's Top PSUs 2009 released by Dun & Bradstreet.

2. COMPANY VISION AND MISSION

2.1COMPANY VISION: Vision Meaning: A vision statement is sometimes called a picture of your company in the future but its so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, Where do we want to go? What you are doing when creating a vision statement is articulating your dreams and hopes for your business. It reminds you of what you are trying to build. MMTC Vision: Contributing to the welfare of communities in which it operates is a natural element of MMTC's activities. MMTC continues its unstinted efforts to promote clean environment and scientific development of mines as also support the government relief measures in natural calamities .The Company and its employees have lived up to the responsibilities as Corporate Citizens and have been playing their role in the times of crisis in the country.

2.2COMPANY MISSION: Mission Meaning: A mission statement is a brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public. Every business should have a mission statement, both as a way of ensuring that everyone in the organization is "on the same page" and to serve as a baseline for effective business planning.

MMTC Mission: As the largest trading company of India and a major trading company of Asia, MMTC aims at improving its position further by achieving sustainable and viable growth rate through excellence in all its activities, generating optimum profits through total satisfaction of shareholders, customers, suppliers, employees and society.

3. PRODUCT RANGE OF COMPANY: Minerals: Despite global downturn leading to sharp deterioration in trade, pressure on availability of ores for exports and constraints of infrastructure and logistics, coupled with stiff competition from exporters from Australia and Brazil, the Company maintained its leadership position in mineral exports through aggressive marketing efforts, enhanced customer focus and tapping of emerging opportunities, especially in China. Precious Metals, Gems & Jewellery: MMTC enjoys the position of market leader in the Indian billion trade having flexibility to operate from various centers spread all over the country offering novel product services besides maintaining enduring relationship. Metals and Industrial Raw Material: Despite International slowdown and downward trend in Industrial & Infrastructure sector leading to decreased demand for base metals and Industrial raw materials, the Metals group of the company contributed Rs. 20275 million to MMTCs turnover during 2008-09. Fertilizer and Chemicals: The Fertilizer and Chemicals group contributed a turnover of Rs.39867 million. The group's performance during 2008-09 included third country trade of 2500 MT Urea worth Rs. 50 million, Import of 11.29 lakh Metric Tonnes of Urea valued at Rs. 30259 million, 3.08 lakh Metric Tonnes of Muriate of Potash at Rs. 7916 million, 0.50 lakh Metric Tonnes Sulphur worth Rs. 1567 million and Soda ash worth Rs.7 million besides domestic trading of Ammonium Sulphate produced at NINL the MMTC promoted Iron & Steel plant valued at Rs. 68 million. With these results MMTC emerged as the largest importer of urea in the country. Coal & Hydrocarbons: The Coal & Hydrocarbons group contributed a turnover of Rs. 31387 million to the highest ever turnover recorded by your company. The turnover contributed by the group included import of 38.15 lakh tonnes of steam coal valued at

Rs.21251 million, 9.18 lakh tonnes of Coking Coal valued at Rs. 5539 million, 0.23 lakh tones of LAM Coke worth Rs. 566 million and solar oil worth Rs. 8 million besides domestic trading in LAM Coke worth Rs.3257 million, Crude Tar amounting to Rs. 414 million, Met Coke worth Rs. 86 million, steam coal worth Rs.266 million. Mica: As reported in earlier years, 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 decision on the review petition filed with the appropriate authorities under the Industrial Disputes Act for closure of Mica division is yet to be pronounced by the Govt. others as Cement, Plastic/PVC, Wool &Engineering & Capital goods : products contributed Rs. 1456 million to the turnover of the Company, which The other included

Imports of Cement, PVC/Plastic, Wool and Engineering & Capital goods worth Rs.1274 million, domestic trade of Rs. 88 million besides sale of power amounting to Rs. 94

million, generated at the 15 MW wind power farms commissioned in March 2007 in Karnataka. During the year 2009-10, the company shall continue availing opportunities emerging in new markets/products for generating additional business revenues for the Company.

4. SIZE OF THE COMPANY( IN TERMS OF TURNOVER & MANPOWER)

4.1 MMTC LTD HIGHEST TURNOVER IN 2010-11 MMTC today said it expects about 50 per cent jump in turnover to Rs 67,500 crore in 2010-11 driven by robust growth in sales of precious metals. In 2009-10, the firms turnover was Rs.45, 124 crore. One of the contributor to the top line of the company has been the precious metals division .The precious metals division is likely to increase 55 per cent to 50,000 crore in 20102011 against Rs 32,130 crore in 2009-10.Gold prices are hovering at a high of Rs.21, 780 per 10 grams while silver touched all time of Rs.64, 300 per kg.

4.2 MANPOWER SIZE The aggregate manpower of the company as on 31 st March 2010 stood at 1838, including six Board level executives, the balance comprising of 608 Officers, 1139 staff & 91 workers. This manpower strength includes 21 officers, 130 staffs 91 workers of erstwhile Mica Trading Company Ltd., which had been merged with your company pursuant to the orders of BIFR. While the composite representation of the total manpower consisted of women employees representing 18.28% (336 employees) of the total manpower, the representation of SC, ST, OBC & persons with disabilities (PWD) was to the extent of 21.10% (388 employees), 7.29 (134 employees), 1.41% (26 employees) and 1.68% (31 employees) respectively. During the year 8 officers were inducted through campus recruitment and 2 through lateral induction. Presidential Directives on reservations for SCs, STs, OBCs and PWD in services were followed fully in

recruitment and promotion. In an effort for rightsizing the manpower, Voluntary Retirement Scheme was offered which was availed by 10 officers, 11 staff cadre employees and 03 workers.

5. ORGANISATION STRUCTURE OF THE COMPANY

6. MARKET SHARE AND POSITION OF THE COMPANY

Market Share definition- The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors. Market Share of MMTC has 4% in the industry.

7.PRESENT LEADERSHIP
DR.SANJIV BATRA (CHAIRMAN) MS.VIJAY LAXMI JOSHI (MANAGING DIRECTOR) MR.DEEPAK DUA (DEPUTY GENERAL MANAGER) MR.M.GUPTA (CHIEF GENERAL MANAGER) During summer training I have done my training under the guidance of MR. DEEPAK DUA. There are 3 styles of leadership: 1. Autocratic leadership 2.Democratic leadership 3. Delegative Leadership MR.DEEPAK DUA has given us training in the democratic style, which is generally the most effective leadership style. She offered guidance to trainees, she also participate in the training program and allow input from all the trainees. She encouraged trainees to participate in the training process, trainees feel engaged in the process and felt very motivated and creative. Skills of Mentor: 1) Communication skills 2) Human skills 3) Writing skill 4) Speaking skills 5) Decision making skills 6) Problem solving skills 7) Social skills 8) Informational skills 9) Interpersonal skills

CHAPTER-2 RESEARCH OBJECTIVE & RESEARCH METHDOLOGY

2.1 RESEARCH OBJECTIVES:

The main objective of the study is to analyze the financial strategies of the company. Study the financial trends of various products

2.2 RESEARCH METHODOLOGY:

The data on financial statements for the last five years and strategies would be studied in detail and based on the data analysis, SWOT analysis of MMTC LTD. The sources of data and study material to be used as follows: Visit to MMTC LTD. Through internet/websites Through MMTC LTD annual reports.

RESEARCH DESIGN 2.3OBSERVATION METHOD:

The observation method involves human or mechanical observation of what people actually do or what events take place during a buying or consumption situation. Information is collected by observing process at work. The following are a few situations:1. Service Stations-Pose as a customer, go to a service station and observe. 2. To evaluate the effectiveness of display of Dunlop Pillow Cushions-In a departmental store, observer notes:- a) How many pass by; b) How many stopped to look at the display; c) How many decide to buy. 3. Super Market-Which is the best location in the shelf? Hidden cameras are used. 4. To determine typical sales arrangement and find out sales enthusiasm shown by various salesmenNormally this is done by an investigator using a concealed tape-recorder. 2.4 Advantages of Observation Method 1. If the researcher observes and record events, it is not necessary to rely on the willingness and ability of respondents to report accurately. 2. The biasing effect of interviewers is either eliminated or reduced. Data collected by observation are, thus, more objective generally more accurate. 2.5 Disadvantages of Observation Method 1. The most limiting factor in the use of observation method is the inability to observe such things such as attitudes, motivations, customers/consumers state of mind, their buying motives and their images. 2. It also takes time for the investigator to wait for a particular action to take place. 3. Personal and intimate activities, such as watching television late at night, are more easily discussed with questionnaires than they are observed. 4. Cost is the final disadvantage of observation method. Under most circumstances, observational data are more expensive to obtain than other survey data. The observer has

to wait doing nothing, between events to be observed. The unproductive time is an increased

2.6.DEFINITION OF FINANCIAL ANALYSIS:

The process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment. Basically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance.

2.7.FINANCIAL ANALYSIS OF MMTC LTD. :

During FY09, MMTC recorded highest-ever turnover when y-o-y growth rate was 39%. The growth was contributed by huge increase in turnover of Precious Metals, Gems & Jewellery division. PAT declined due to fall in margins of iron ore exports, which constitute a significant part of the profits. Also the share of low-margin precious metals business in the total turnover increased which led to the decline in PAT margins. On a total income of Rs.37,852 cr, MMTC reported a PAT of Rs.140 cr. MMTC continues to remain a zero long-term debt company as at the end of FY09. It has extended a corporate guarantee of Rs.1,470 cr (as on March 31, 2009) for NINL to various banks and financial institutions for securing principal and interest. The working capital loans of MMTC have increased in line with increased scale of operations, resulting in increase in the overall gearias on March 31, 2009.

Q1FY10 performance: MMTC recorded PAT of Rs.41 cr on total income of Rs.7,502 cr during Q1FY10. The PAT Margin remained unchanged at 0.55% when compared to that of Q1FY09. Industry prospects: Though sentiments for the Indian economy are improving with the Index of Industrial Production (IIP) figures for July 2009 showing 6.8% growth over the same month last Year and better-than-expected quarterly results of the companies, the global picture still remains gloomy. This has taken a toll on Indian exports which declined for the sixth month in a row in March 2009. Total exports from India in March 2009 declined by 33.3% to USD11.52 bn compared to March 2008. Total exports for FY08-09 increased by a modest 3.4% to USD168.70 bn compared to FY07-08. Outlook for MMTC is directly linked to economic environment. MMTCs long experience, large network and infrastructure are likely to support its leading position in the near future

CHAPTER-3 FINANCIAL DATA OF MMTC

3.1BALANCESHEET OF THE COMPANY: DEFINITION OF BALANCESHEET:

A balance sheet is a statement of the total assets and liabilities of an organization at a particular date - usually the last date of an accounting period. The balance sheet is split into two parts: (1) A statement of fixed assets, current assets and the liabilities (sometimes referred to as "Net Assets") (2) A statement showing how the Net Assets have been financed, for example through share capital and retained profits. The Companies Act requires the balance sheet to be included in the published financial accounts of all limited companies. In reality, all other organizations that need to prepare accounting information for external users (e.g. charities, clubs, and partnerships) will also product a balance sheet since it is an important statement of the financial affairs of the organization. A balance sheet does not necessary "value" a company, since assets and liabilities are shown at "historical cost and some intangible assets (e.g. brands, quality of management, market leadership) are not included.

Balance sheet Mar ' 10 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments 272.91 231.54 11,467.48 10,271.75 5,410.90 6,056.58 6,451.94 5,212.33 5,059.42 5.83 5,428.58 206.41 84.67 121.74 0.72 272.91 202.64 75.73 126.91 4.89 231.54 4,614.36 550.44 6,451.94 4,305.20 5,428.58 50.00 1,237.15 50.00 1,073.38

(in crore) Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

50.00 979.96

50.00 832.13

50.00 783.27

3,198.35 3.28 4,231.60

1,127.01 2.79 2,011.93

507.06 0.02 1,340.35

202.49 62.65 139.84 4.16 254.97

201.07 51.86 149.20 3.42 254.96

73.58 45.29 28.29 3.74 220.96

8,648.91 4,818.53 3,830.38 2.25 4,231.60

3,288.15 1,685.31 1,602.84 1.51 2,011.93

3,413.33 2,330.46 1,082.87 4.49 1,340.35

199.02

202.15

168.15

Mar ' 10 Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 1,747.98 500.00

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 1,719.02 500.00 53.13 1,200.38 500.00 52.52 1,048.52 500.00 53.65 1,626.12 500.00

3.2 Advantages of balance sheet : The advantages include full disclosure and ratio analysis while the disadvantages can include value discrepancies and transparency. A standard balance sheet is made up of three parts: Assets, liabilities and ownership equity. These are all listed as of a specific date, such as at the end of the companys financial year. Full disclosure is one of the main purposes for balance sheets or financial statements and is also one of its main advantages. It is now a requirement, made by the Securities and Exchange Commission, that all public companies must make a 10K report. This 10K report must include a full disclosure of all financial statements, all detailed with notes explaining all assumptions. The details of a companys spending are available to the public and, in theory, It should stop companies from claiming any spending in a way that they shouldnt. Balance sheets and financial statements are advantageous for the data that is needed to conduct a thorough ratio analysis. The fact that they are based on a system that is not market based, the accrual system of accounting, is an advantage in the sense that it is good to have a basis for comparing book value to market value. It also helps pinpoint any bargains the in the market.

3.3Disadvantages of balance sheet:

Disadvantages with balance sheets can be due to value discrepancies. These make it difficult to know the real value of assets within a balance sheet or financial statement and this, in turn, can translate into unreliable ratios. A bigger disadvantage with balance sheets is the transparency of them. As they are reasonably easy for anyone to understand, this does make it easy for people to hide information, even with a full disclosure. Analysts will need to study the cash flow in detail and check where cash flow is coming from or going to.

3.4PROFIT AND LOSS ACCOUNT OF THE COMPANY

DEFINITON OF PROFIT AND LOSS ACCOUNT:

A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement"

Profit loss account Mar ' 10 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT 44,353.48 2.07 164.49 591.60 70.64 45,182.28 81.63 600.32 681.94 413.48 13.33 5.83 249.31 36,386.88 1.89 165.28 253.25 123.43 36,930.73 86.71 801.20 887.91 666.99 12.58 1.82 206.51 25,911.37 2.65 118.38 197.85 99.80 26,330.05 172.98 221.37 394.35 136.15 12.68 1.35 244.17 45,263.91 37,017.44 26,503.03 Mar ' 09 Mar ' 08

(in crore) Mar ' 07 Mar ' 06

23,346.14

16,393.39

22,912.18 2.64 88.31 176.77 52.65 23,232.56 113.58 131.80 245.38 73.69 7.97 3.33 160.39

16,012.79 2.50 70.56 152.98 55.00 16,293.83 99.56 135.72 235.28 85.98 4.19 4.07 141.04

Mar ' 10 Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 116.20 133.11 28.50 54.63 216.24 686.44 45.00 7.47 633.96

Mar ' 09 76.90 129.62 -23.32 33.92 140.22 534.00 40.00 6.80 487.20

Mar ' 08 113.13 131.04 41.79 27.66 200.48 467.43 45.00 7.65 414.78

Mar ' 07 61.91 98.48 1.44 26.88 126.80 308.82 25.00 3.88 279.95

Mar ' 06 59.61 81.43 3.15 23.71 108.29 221.53 25.00 3.51 193.03

3.5Advantages of profit and loss account:

1.Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period. 2. Profit and loss account gives the actual information about indirect expenses. 3. Profit and loss account serves to determine the ratio between net profit to sales. 4. Profit and loss account helps in determining the ratio between net profit to operating expenses. 5.Profit and loss account helps in controlling indirect expenses.

3.6Disadvantages of profit and loss account:

A. Cost allocations are based on estimates which makes the data subjective. B. The various choices of accounting methods (for inventory valuation, depreciation methods, etc.) make evaluation and comparison of different companies difficult. C. Different companies may have different fiscal year ends also making comparisons difficult. D. Financial data is not adjusted for price changes, replacement cost values, inflation/deflation issues, etc.

3.7CASH FLOW OF THE COMPANY: DEFINITION OF CASH FLOW

1.A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities - financing, operations or investing - although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance. 2. An accounting statement called the "statement of cash flows", which shows the amount of cash generated and used by a company in a given period. It is calculated by adding noncash charges (such as depreciation) to net income after taxes. Cash flow can be attributed to a specific project, or to a business as a whole. Cash flow can be used as an indication of a company's financialstrength.

Cash flow Mar ' 10 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 333.07 -734.67 533.86 423.58 222.76 5,858.00 6,080.76 Mar ' 09 217.38 -1,282.03 802.59 385.41 -94.04 5,952.04 5,858.00 Mar ' 08 324.60 2,405.38 204.16 1,901.71 4,511.25 1,440.79 5,952.04

(in crore) Mar ' 07 189.33 -495.64 -6.13 537.38 35.61 1,405.17 1,440.79 Mar ' 06 167.89 -3,481.23 103.93 89.24 -3,288.07 4,693.24 1,405.17

3.8The advantages of the cash flow over the profit and loss account
1- The profit and loss account sets out the revenue and expense rather than the cash receipts and cash payments for the period. 2- When a company makes a sale on credit this will be reflected as an increase in the wealth in the profit and loss account but there is no cash collected. 3- It shows the cash coming from the operation 4- It shows the cash used in the investing activities 5- It shows the cash used in the financing activities

3.9The disadvantages of the cash flow over the profit and loss account
1- Businesses providing recurring services or product orders which are good candidates, while invoices for one-time orders might find it difficult to gain this type of funding. 2- If the mark up sale price of the goods or service provided is less than the amount of the invoice finance fee.

3.10DIVIDENDS OF THE COMPANY:

DEFINITION OF DIVIDENDS: A monetary gain on an investment, much like earning interest on a bank account. Credit Unions typically use "dividend" instead of "interest" in their various accounts ."dividend is given from the profit earn by the company to the share holders of the company" simply telling "dividend is the part of the profit"

Dividend Year 2011 2010 2009 2009 2008 2008 Month Aug Jun Aug Mar Jul Jan Dividend (%) 25 90 40 40 55 35

3.11ADVANTAGES &DISADVANTAGES OF DIVIDENDS: Shows Company's Stability:

Investors look at a consistent dividend payout as a sign of the company's stability. When a company has been able to pay the same dividend over a long period of time, it gives investors more confidence when investing in that company. When a company that has paid dividends consistently fails to pay a dividend, the share price typically falls, according to Investopedia. In

addition, when a company that has not paid dividends before begins paying dividends, the company usually sees a boost in its stock price.

Investors Realize Gains

When companies pay dividends, investors reap the benefits of owning a company without having to sell the stock. For companies that do not pay dividends, the only way for investors to realize a gain is through selling their ownership of the company. In addition, if a company pays consistent dividends, investors can still reap some benefit from owning the shares, even if the company's stock price falls. For example, if the company pays $2 per share and you own 100 shares, you will receive $200 of income even if the price per share goes down.

Investors Pay Taxes

When corporations issue dividends, the investor must include that gain on his tax returns as taxable income for that year. In addition, dividends are taxed at a higher rate than capital gains, according to Investopedia. Instead, investors usually prefer companies that reinvest the dividends so the company grows and the share price increases. Since investors do not pay taxes on stock price increases until the stock is sold, the money grows tax-deferred and the capital gains tax is lower than the regular income tax.

Limits Company Growth

When a company pays dividends, it take money out of the company coffers and gives it to investors, meaning that the company has less money to grow the business. This is especially true of startup companies that need as much capital as possible. According to the Securities and Exchange Commission, some companies decide not to pay dividends but instead to put their profits back into the company to increase production, hire more employees or spend more money on research and development. However, mature companies that have minimal expansion possibilities may wish to pay dividends to shareholders rather than have the money sit in the company coffers and not give investors the opportunity to invest it elsewher

3.12RATIOS ANALYSIS OF THE COMPANY:

DEFINITION OF RATIO ANALYSIS: A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis

Ratios Mar ' 10 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 0.18 0.15 0.47 0.33 10.34 16.79 36.06 0.23 0.20 0.37 0.38 11.59 12.54 77.75 26.62 30.45 43.25 47.08 9.00 16.32 257.43 257.43 9,052.78 247.42 25.92 28.80 28.04 30.92 8.00 17.34 223.51 223.51 7,403.49 213.50 Mar ' 09

(in crore) Mar ' 08 Mar ' 07 Mar ' 06

26.21 29.01 40.10 42.90 9.00 34.60 205.54 205.54 5,300.61 195.53

19.70 21.96 25.36 27.62 5.00 22.72 176.12 176.12 4,669.23 156.50

16.29 17.94 21.66 23.31 5.00 19.91 165.76 165.76 3,278.68 146.14

0.65 0.60 0.75 0.54 12.75 19.50 36.92

0.48 0.45 0.54 0.46 11.18 14.39 26.53

0.60 0.58 0.65 0.54 9.82 13.06 27.24

Mar ' 10 Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio Coverage ratios Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed Long term assets / total Assets Bonus component in equity capital (%) 102.23 1.30 7.17 100.00 0.03 94.00 33.92 1.65 1.57 24.26 22.29 60.58 65.54 2.12 0.78 1.72 21.20 0.42 4.01 19.94 219.29

Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

3.83 20.69 182.68

3.11 24.33 130.88

1.28 43.84 116.11

0.60 62.16 222.81

1.97 0.74 1.85 63.99

1.79 0.77 1.67 47.91

1.95 0.83 1.82 131.39

1.46 1.02 1.34 65.80

33.37 30.26 63.90 67.51

26.26 24.54 59.83 63.71

22.77 20.91 70.68 73.70

26.32 24.45 65.00 68.22

29.89 1.33 1.23

22.07 2.90 2.58

10.29 3.33 2.87

5.65 2.74 2.36

98.52 0.68 12.41 99.68 0.03 94.00

99.69 0.74 12.97 100.00 0.04 94.00

98.42 0.75 14.72 100.00 0.11 94.00

98.91 0.93 17.68 100.00 0.06 94.00

3.14Advantages of ratio analysis:

It simplifies the financial statements. It helps in comparing companies of different size with each other. It helps in trend analysis which involves comparing a single company over a period. It highlights important information in simple form quickly. A user can judge a company by just looking at few numbers instead of reading the whole financial statements.

3.15Limitations of ratio analysis:

Different companies operate in different industries each having different environmental conditions such as regulation, market structure, etc. Such factors are so significant that a comparison of two companies from different industries might be misleading. Financial accounting information is affected by estimates and assumptions. Accounting standar-ds allow different accounting policies, which impairs comparability and hence ratio analysis is less useful in such situations. Ratio analysis explains relationships between past information while users are more concerned about current and future information.

CHAPTER-3
3.1DEFINITION OF THE FINANCIAL STRATEGY
The practices that a firm adopts to pursue its economic objectives . In the corporate context, formulating a financial strategy is the purview of top leadership, although department chiefs and accounting heads also pitch in.

3.2Factors involved:
MMTC plan the financial strategy on the basis on some factors:

Future need for liquidity Future cash flow Relation between assets and liabilities Risk profile Time horizon How the business will be financed

FUTURE NEED FOR LIQUIDITY: It refers both to a business's ability to meet its payment obligations, in terms of possessing sufficient liquid assets, and to such assets themselves in future to fullfil its needs. FUTURE CASH FLOW: The statement of a business's cash flows is often used by analysts to gauge financial performance. Companies with ample cash on hand are able to invest the cash back into the business in order to generate more cash and profit. RELATIONSHIP B/W ASSETS & LIABILITIES: It estimates whether the business can pay debts due within one year from assets that it expects to turn into cash within that year. A ratio of less than one is often a cause for concern, particularly if it persists for any length of time RISK PROFILE: . A measure of how risk averse an investor is. One may conduct a risk profile to determine what securities will likely fit an investor's investment goals. TIME HORIZONS: The length of time over which an investment is made or held before it is liquidated. Time horizons can range from seconds, in the case of a day

trader, all the way up to decades for a buy-and-hold investor. There is no "right" time frame - it depends on the investor's individual objectives. HOW WILL THE BUSINESS WILL FINANCED: It means the various means

providing the funds to the business to operate efficiently in market and have some reputative goodwill.

3.3ACCOUNTING POLICIES:
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT (a) The financial statements are prepared according to the historical cost convention on accrual basis and in line with the fundamental accounting principles of prudence, consistency and materiality.

(b) The financial statements are reported in Indian Rupee and all values are rounded to the nearest million unless otherwise stated.

(c) Statement of Compliance: The financial statements are prepared on the basis of generally accepted accounting principles in India, accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as amended from time to time. 2. PURCHASES AND SALES. a) Purchases and sales are booked where the company has entered into purchase/sale

contract/agreement with the sellers/buyers or received allocation letter from Government, on performance of the contract/agreement/allocation either wholly or partly.

b) Gold/Silver sent by foreign suppliers on consignment basis : i) Purchases include gold/silver withdrawn from consignment stock on outright purchase basis for sale to exporters, as per the scheme of Exim Policy being operated by the Company as a nominated agency. ii) Purchase of Gold for domestic sale is accounted for on withdrawal from the consignment stock and fixation of price with the suppliers.

iii) Gold/silver withdrawn on loan basis where from consignment stock, are shown as loan given to parties and shown under Loans and Advances. The corresponding liability towards the stocks received from foreign suppliers is shown under Sundry Creditors. Loan/Sundry Creditors are adjusted when purchase and sales are booked. iv) In the case of replenishment basis, gold/silver booked by exporter by paying margin money, purchase is booked after fixing the price with the foreign suppliers. However, sale is booked when quantity is actually delivered after completion of exports. v) Consignment stocks held on behalf of foreign suppliers at the year end is suitably disclosed in the accounts. However, customs duty paid in respect of balance consignment stock is shown as prepaid expenses. c) In respect of exports of Iron Ore/Manganese Ore where final sal value is ascertained on the basis of destinational weight and analysis results and such results are awaited, provision towards DWA risk is made @ 1 % on the provisional sale value. In case of FOBT supplies where DWA risk on the purchase value is to the account of supplier provision @1 % is made on the difference between sale value and purchase value. d) Pending settlements, certain expenses/ gain/loss like dispatch earned/ demurrage payable etc. are accounted for on provisional basis.

3. REVENUE RECOGNITION

i) Revenue is recognized on accrual basis except in the following items which are accounted for on actual realization since reusability of such items is uncertain in accordance with the provisions of AS-9 issued by ICAI:a) Tax credit, duty credit authorization under Target Plus scheme, REP/Advance Licenses, Service Tax refund, etc. b) Decrees pending for execution/contested dues and interest thereon, if any: c) Interest on overdue recoverable where readability is uncertain. d) Liquidated damages on suppliers/underwriters, refund of custom duty on account of survey shortage, and refund of income-tax/sales-tax A/AT and interest thereon. Insurance claims are accounted for upon being accepted by the insurance company.

ii) Claims are recognized in the Profit & Loss Account on accrual basis including receivables from Govt , towards subsidy, cash incentives, reimbursement of losses etc. when it is not unreasonable to expect ultimate collection. Claims recognized but subsequently becoming

doubtful are provided for through Profit & Loss Account.

4. PREPAID EXPENSES Prepaid expenses up to Rs.10, 000/- in each case are charged to revenue. Deposits up to Rs.5,000/- in each case with Government Department, Statutory Corporations, Electricity Boards and Local Bodies are also Charged off to revenue.

5. FIXED ASSETS

(a) All fixed assets are stated at historical cost less accumulated impairment in value.

depreciation and any

(b) The Company expenditure toward construction/development of assets on land owned by the Government/Semi Government Authorities, is capitalized under heading Fixed Assets created on Land and neither the Fixed Assets nor the Land belongs to the Company. E. Mobile handsets are directly charged to revenue in the year of purchase.

6. INVESTMENTS

(i) Long term investments are valued at cost less provision for permanent diminution in value. (ii) Current investments are valued at lower of cost and fair value.

8. FOREIGN CURRENCY TRANSACTIONS

a) Transactions with rupee payment countries in respect of non-convertible Indian currency are being treated as foreign exchange transactions. b) Foreign currency monetary items (except overdue recoverable where realisibility is

uncertain) are converted using the closing rate as defined in theAS-11 issued by the Institute of Chartered Accountants of India. Non- monetary items are reported using the exchange rate at the

date of the transaction. The exchange difference gain/loss is recognized in the Profit and Loss account. c) Liability in foreign currency relating to acquisition of fixed assets is converted using the closing rate as defined in AS 11 issued by the Institute of Chartered Accountants of India. The difference in exchange is recognized in the Profit & Loss Account. d) In respect of forward exchange contracts, the premium /discount and loss /gain will be recognized as under:In respect of forward exchange contracts against existing underlying transactions, the premium / discount is recognized proportionately over the life of the contract. The loss/gain due to difference in exchange rate between (i) closing rate or the rate on the date of settlement if the transaction is settled during the year, and (ii) the exchange rate at later of the date of the inception of the forward contract or the last reporting date is recognized in the Profit & Loss Account for the year. In respect of forward contracts relating to firm commitments and highly probable forecast transactions, loss due to exchange difference is recognized in the Profit & Loss Account in the reporting period in which the exchange rate changes. Any profit or loss arising on renewal or cancellation of such contracts is recognized as income or expense for the period. e) Investments in subsidiary company outside India are translated at the rate of exchange prevailing on the date of acquisition. 9. SEGMENT REPORTING Primary Segment: The management evaluates the company performance and allocates the resources based on analysis of various performance indicators by the following business segments/ Product segments i.e. 1. Minerals 2. Precious Metals 3. Metals 4. Agro Products 5. Coal & Hydrocarbon 6. Fertilizer 7. General Trade /others.

Above Business Segments have been identified in line with AS-17 Segment Reporting taking into account the company organizational structure as well as different risks and returns of these segments. Secondary Segment: Secondary Segments have been identified based on the

geographical location of the customer of the company i.e. 1. Outside India 2. Within India

10. EMPLOYEE BENEFITS (i) Provision for gratuity, leave encashment / availment , post retirement medical benefit and ALTC/LTC liability is made on the basis of actuarial valuation as per AS-15(Revised) issued by The Institute of Chartered Accountants of India. (ii) Provident fund contribution is made to Provident Fund Trust on accrual basis. (iii) Payment of Ex-gratia and Notice pay on Voluntary Retirement are charged to revenue in the year incurred. 11. PHYSICAL VERIFICATION OF STOCKS Physical verification of stocks is undertaken once in a year and balances are arrived at after necessary adjustments till the end of the year. The stocks as physically verified are adopted as closing stocks and shortages/excesses suitably dealt with. In some of the cases where stocks are lying with Handling Agent/SWC/CWC/Private Parties the stocks have been adopted on the basis of certificate given by the respective agencies. 12. VALUATION OF STOCKS Inventories including Goods-in-Transit are valued at lower of the cost or realisable value as on 31st March. The method of valuation is as under: a) EXPORTS Cost of export stocks is arrived at after including direct expenses incurred up to the point at which the stocks are lying. Similarly the realisable value is derived by deducting from the market price the expenses to be incurred from that point to the stage where they are sold.

MINERAL ORES The realisable value of ores is worked out at the minimum of the Fe/ Mn contents of the grade of the ore as per export contract and is compared with the weighted average cost at weighted average Fe/Mn contents/weighted average moisture contents of the ore. The embedded stocks of Iron ore are excluded from inventory and hence not valued. (b) IMPORTS The cost of imported stocks is arrived at by working out the yearly regional weighted average cost except for Non-ferrous Metals where weighted average cost of remaining stock after including all expenses incurred up to the point at which they are lying is considered. In case of cut & polished stones, medallions and jewellery (finished/semi finished) cost includes wastages and other direct manufacturing cost. Gold/Silver purchased from foreign suppliers against booking by exporters under replenishment option and not delivered at the year end are shown as stocks of company and valued at cost. (c) DOMESTIC Packing material is valued at lower of the cost or realisable value as on 31st March. (d) STOCK ON LOAN/FABRICATION Stocks with fabricators are taken as the stocks of the company, till adjustments. 13. PRIOR PERIOD ADJUSTMENTS Expenditure/income relating to previous year is shown in the accounts under the head Prior Period Adjustment Account as per the provisions of AS-5 (Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies) issued by Institute of Chartered Accountants of India. 14. BORROWING COSTS (i) Borrowing cost in ordinary course of business are recognized as an expense in the period in which these are incurred. (ii) Borrowing costs that are attributable to the acquisition, construction of qualifying assets are capitalized as part of cost of such asset up to the date the assets are ready for their intended use. All other borrowing costs are recognized as an expense in the year in which they have been incurred.

15. DEFERRED TAX Deferred tax is recognized, subject to consideration of prudence on timing differences representing the difference between the Taxable income and Accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using tax rates and the tax laws that have been enacted or substantively enacted by the Balance Sheet date.

16. IMPAIRMENT OF ASSETS An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value and impairment loss is charged to Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

17. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

(I) Provisions

(a) Provisions for Doubtful Debts/Advances/Claims:

Provision for doubtful debts/advances/claims is made where there is uncertainty of realization irrespective of the period of its dues. For outstanding over three years (except Government dues) full provision is made unless the amount is considered recoverable. Debts/advances/claims are written off when unrealisability is almost established.

(b) Others

Provision is recognized when: (i) the Company has a present obligation as a result of the past event. (ii) a probable outflow of resources is expected to settle the obligation and a reliable estimate of the amount of the obligation can

be made. Reimbursement of the expenditure required to settle a provision is recognised as per contract provision or when it is virtually certain that reimbursement will be received. Provisions are reviewed at each Balance Sheet date. (i) Contingent liabilities and contingent assets (ii) Contingent liabilities are not recognized but are disclosed in the Notes to the Accounts. (iii) Contingent assets are neither recognized nor disclosed in the financial statements.

18. TREATMENT OF EXPENDITURE DURING PROJECT IMPLEMENTATION CONSTRUCTION PERIOD

Expenditure during construction period is included under Pre-operative expenses and the same is being allocated to the respective fixed assets on the completion of erection/installation.

19. CONTINGENT LIABILITIES

1. Contingent Liabilities: a) Guarantees issued by Banks on behalf of the Company Rs. 845.80 million (P. Y. Rs. 758.63 million). b) Corporate Guarantees of Rs. 14409.10 million (RY. Rs. 14696.00 million) given by the company in favour of financial institutions/banks on behalf of Neelachal Ispat Nigam Limited (NINL) for securing principal and interest in respect of loans to NINL. As per the decision of Committee of Secretaries concerned, NINL may be merged with Steel Authority of India Limited subject to Governments approval for which process has been initiated. c) Claims against the Company not acknowledged as debts Rs. 1961.07 million (P.Y. Rs. 1300.10 million). d) Letters of Credit opened by the Company remaining outstanding Rs.15919.74 million (RY. Rs. 10586.75 million). e) Bills discounted with banks Rs. Nil million (P.Y.Rs. 30.51 million).

f) Sales Tax Demand of Rs. 851.97 million (P.Y. Rs. 960.41 million) in dispute against which Rs. 84.25 million (P.Y. Rs. 84.71 million) has been deposited and Rs. 2.30 million (P.Y. Rs. 2.30 million) covered by bank guarantees. g) Service Tax demand in respect of business auxiliary service amounting to Rs 341.50 million (L.Y. Rs 257.61 million) pending before Customs, Excise & Service Tax Department. h) Bonds have been furnished to Customs Authorities for performance, submission of original documents, etc, some of which are still outstanding. The amount of un-expired Bonds is Rs. 1118.87 million as on 31.03.2010 (PY Rs. 827.48 million). h) A party has served a legal notice for non lifting of part quantity of coking coal in respect of supplies to M/s NINL, relating to delivery period 2008-09, claiming an amount of Rs 3535.00 million ( PY Rs Nil million) which has been refuted since the same is not tenable. MMTC has also put the party on notice to lodge counter claim for non supply of coking coal for the year 2009-10. The matter has been taken up issue at Govt, level as the supplier is also one of the major supplier of cooking coal to other PSUs and all terms, conditions and prices are determined by an empowered joint committee consisting of senior level nominees of Govt, and PSUs. i) In one of the RO, auditors have observed for making liability towards CST transit sales of Rs 1947.58 million on which in their view liability of CST amounting to Rs 38.95 million may arise. On the basis of expert opinion and past experience, the company is of the view that no liability is likely to arise on this account. Accordingly no provision has been made.

However, this will be suitably dealt with in the accounts after completion of assessment. k) Additional liability, if any, on account of sales tax demands on completion of assessments, disputed claims of some employees,non-deduction of Provident Fund by Handling Agents/Contractors,disputed rent and interest/penalty/legal costs etc., in respect of amounts indicated as contingent liabilities being indeterminable, not considered. l) In some of the cases amounts included under contingent liabilities relate to commodities handled on Govt. of Indias account and hence the same would be recoverable from the Govt, of India.

CHAPTER-4 4.1 FINANCIAL STRATEGIES OF MMTC:

1. Setting up of a Currency Futures Exchange under the name and style of United Stock Exchange of India Ltd which also is likely to commence operations shortly. 2. 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, under the name and style of MMTC-Pamp India Private Limited. The civil construction activities for the said unit have already commenced in Haryana and the unit is likely to commence trial production in mid 2010. 3. For effective marketing of the finished products from above unit, as well as jewellery from other sources, your company is be setting 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. Towards this end a special purpose vehicle (SPV) under the name and style of MMTC-Gitanjali Private Limited has been incorporated and to begin with one retail store each in Delhi, Gurgaon and Ahmadabad has already been opened under the name SHUDHI by the said SPV. 4. Setting up permanent berth with loading facilities for Iron ore at Ennore Port jointly with SICAL and L&T Infrastructure Ltd. under the name and style of M/s. SICAL Iron Ore Terminals Limited, Chennai. The permanent berth being constructed by M/s. SICAL Iron Ore Terminals Limited is likely to be operational by mid 2010. 5. Development of deep draught Iron ore berth at Para deep Port (Orissa) jointly with Noble Group Ltd and Gammon Infrastructure Projects Ltd under the name and style of M/s. Blue Water Iron Ore Terminal Private Ltd. 6. Towards investing in mining infrastructure your Company is promoting a joint venture Company with M/s TATA Steel Ltd. for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc. 7. Your Company has been allotted a coal mine in Jharkhand having estimated reserves of about 700 million MT, pre-feasibility study of which has already commenced and prospecting license is likely to be issued shortly by the concerned authorities.

8. MMTC, the countrys largest foreign trading company, is planning to take a major leap in the non-conventional energy sector, following its successful pilot project in Karnataka. As a part of its diversification strategy, the company will invest around Rs 240crore in the next two years to set up new wind mill units across the country. The companys new investment plan comes in the wake of the success of its 15 mw windmill plant in Karnataka.

SYNOPSIS: Study on Financial Strategies of MMTC

BRIEF INTRODUCTION:

Established in 1963, MMTC, one of the two highest foreign exchange earners for India, is a leading international trading company with a turnover of over US$ 5 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 . MMTC is the largest non-oil importer in India. MMTC's diverse trade activities encompass Third Country Trade, Joint Ventures, and 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 global market coverage