MMTC seeks time till August 31 from exchanges for financial results

MMTC said it has requested stock exchanges to extend time limit up to Aug 31 for holding meeting of audit committee and Board of Directors for consideration and approval of audited financial results

State-run trading firm MMTC on Friday said it has requested the stock exchanges to extend the time limit up to August 31 for holding the meeting of its audit committee and Board of Directors for consideration and approval of audited financial results for the year ended March 31, 2021.

However, it said that vigorous efforts will be made to finalise the accounts for the financial year 2020-21 at the earliest.

In a filing, the company said due to a "very" large exposure of MMTC in Neelachal Ispat Nigam Ltd (NINL) of which MMTC is a major promoter, the conclusion of accounts of NINL form a very substantive input for MMTC.

Due to COVID-19 pandemic and cessation of the functions of NINL's steel plant and continuous lock down and unrest at the plant, the process of finalization of accounts of this JV company for the financial year 2020-21 has got delayed and is yet to be approved by the Board of NINL, it said.

The government has already approved disinvestment of MMTC in NINL and this would have bearing on the accounts of MMTC Ltd, it added.

It also said that on the review petition filed by MMTC in the matter of MMTC vs. Anglo American Metallurgical Coal Pty Ltd, the Supreme Court has passed an order reducing the interest component.

"Details are being worked out to know the impact on this decision. MMTC may be required to make significant provision in the Accounts for 2020-21 subject to Auditors/Board approval," MMTC said.

On account of this, the annual accounts of MMTC for the financial year 2020-21 may be delayed, it said.

"Considering the above circumstances, we request the Stock Exchanges to extend the time limit upto 31.8.2021 for holding the meeting of Audit Committee and Board of Directors for consideration and approval of Audited Financial Results (both stand alone and consolidated) for the year ended 31st March 2021," it said.