MMTC net loss at Rs 113.73 cr in Q2

State-owned trading firm MMTC today reported a net loss of Rs 113.73 crore for the quarter ended September 30, largely due to an ad-hoc provisioning of Rs 194.67 crore against a transaction done in the last fiscal.

The company had reported a net profit of Rs 18.85 crore during the corresponding period of last fiscal.

Net sales of the company was also down by about 45% to Rs 8,846.98 crore during the quarter as compared to Rs 16,046.64 crore of the July-September period of FY12, it said in a filing to the BSE.

According to the filing, MMTC reported extraordinary items (net of tax expense) of Rs 131.51 crore during the quarter, which represents ad hoc provision of Rs 194.67 crore.

The provisioning has been "made against amount recoverable from customer arising out on account of certain acts of commission and omission at regional office, Hyderabad, relating to bullion transactions during 2011-12 pending investigation," the filing said.

It added that the company has received security in the form of equitable mortgage of land valued at Rs 108.90 crore and jewellery of about Rs 46.50 crore.

The valuation has been done by a government approved valuer, the company said, adding that the company has received legal notice in respect of ownership of land, which has been legally replied to.

"However, keeping in view the uncertainty in realisability of these securities, ad-hoc provision has been made," the MMTC filing said.

The company, which is on the disinvestment radar of the government during the current fiscal, also reported an exceptional item of Rs 12.62 crore but did not provide details.

During the quarter, its total expenses were at Rs 8,823.46 crore, while it paid a tax of Rs 8.54 crore.

Shares of the company closed today at Rs 727.65 apiece on the BSE, down 0.82% from their previous close.