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MMTC Ltd.

BSE: 513377 Sector: Others
NSE: MMTC ISIN Code: INE123F01029
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OPEN 35.10
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VOLUME 178297
52-Week high 64.80
52-Week low 31.15
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Mkt Cap.(Rs cr) 5,115
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MMTC Ltd. (MMTC) - Auditors Report

Company auditors report

To the Members of MMTC Limited Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of MMTC Limited ("theCompany") which comprise the Balance Sheet as at March 31 2021 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year ended on that date and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the financial statements")in which are incorporated the financial statements for the year ended on that date auditedby the Branch Auditors of the Company's Regional Offices at Mumbai Vizag ChennaiHyderabad and Bhubaneshwar.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules2015as amendedthereof ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2021 the losses and totalcomprehensive income(Comprising of net loss and total comprehensive loss) changes inequity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Emphasis of Matters

1. We draw attention to Note No. 34(vi) to the Standalone Ind-AS financialstatements in respect of pre-award interest payable to Anglo Coal amounting to Rs 128.89crores for the period 1.10.2009 to 24.09.2012. The Company is of the opinion thatpre-arbitration interest is not payable to Anglo Coal for the mentioned duration and onlypendente lite and future interest will be payable at 6% simple interest as per SupremeCourt order dated 29.07.2021.

MMTC is holding total exposure of Rs 3987.58 crores (including equity investment) withNeelachal Ispat Nigam Limited (NINL). Cabinet Committee on Economic Affairs (CCEA) hasaccorded ‘in principle' approval for strategic divestment of equity investment heldby MMTC and other Central/ State Public Sector Undertakings (PSUs) on 8th January 2020 andsubsequent various meetings on divestment by DIPAM. Management has considered that noimpairment of investment and advance to NINL is required as full outstanding amount duefrom NINL will be realized from the divestment proceeds. (Also refer Note No. 36(c) to thestandalone Ind-AS financial statements).

2. We draw attention to Note No. 10 of the Standalone Ind-AS financialStatements the Company has made deferred tax assets amounting to Rs 330.69 crores onlosses limited to the probable interest proceeds (from financial year 2019-20 2020-21& 2021-22) to be realized through divestment proceeds of NINL.

3. We draw attention to Note No. 17 to the Standalone Ind-AS financialstatements in respect of restructuring of loans where it has been agreed with the lenderbanks that outstanding amount of loan and interest will be repaid by 31.03.2022 throughthe divestment proceeds of NINL.

4. We draw attention to the Note No. 49 of the statements which describes theimpact of covid-19 a global pandemic on the operations and financial matters of thecompany.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Sl. No Key Audit Matter Auditor's Response
1. Refer note no. 34 on the claims not acknowledged as debt incorporating therein claims on account of pending legal cases. There are large numbers of cases pending before various adjudicating authorities. These legal cases involve significant judgement to determine the possible outcome of those disputes and independent legal assessment to pursue the case. We obtained list of all the pending legal cases handled at Corporate office legal division on 31st March 2021 with a note from management on the changes in the status of the cases from that of last year. We considered the effect of information provided by the management and analysed the impact of financial obligation of the Company.
The company has 5 regional offices and different divisions to handle the trade activities including accounting of that particular activity. However in lot of cases the legal cases are pursued at corporate office level while related financial information / transactions are dealt at RO level thereby difficulties are faced in giving a comprehensive and holistic treatment to the transaction. It was suggested to management to have legal cases and financial obligation if any at the same location in order to have clarity in reporting in financial statement.
2. Refer note no. 11 include advance to related parties wherein interest income on loan/advance given to NINL has not been recognized as an income during the year. In view of the significance of the matter we applied following audit procedures in this area among others to obtain sufficient appropriate evidence.
We discussed the matter with the management to understand the possibility of recovery of interest
Considered the appropriateness of Company's revenue recognition policy and its compliance in terms of IND AS 115 Revenue recognition.
Assessed the relevant disclosures made in the financial statements.
3. Assessment of impairment of investment in subsidiary and joint ventures (Refer note no. 6) Our audit procedures include but we are not limited to the following:
The company as at 31st March2021 has non-current and current investments. Obtained and understanding of the management process.
Discussed extensively with management regarding impairment indicators and evaluated the design and testing operating effectiveness of controls.
Assessed the methodology used by the management to estimate the recoverability of investment and ensured that it is consistent with applicable accounting standards.
4. Refer Note No 32 (ii) on provision on Anglo Coal In view of the significance of the matter we applied following audit procedures:
Obtained and understanding of relevant documents in relation to the matters of anglo coal.
Discussed with management regarding the possible impact and shown in the financial statement.

Management's Responsibilities for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the Ind AS andother accounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism throughout the audit. We also:

? Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

? Obtain an understanding of internal financial control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

? Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

? Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

Other Matters

We did not audit the financial statements/ financial information of 5 Regional Officesincluded in the standalone financial statements of the Company whose financialstatements/financial information reflect total assets of Rs 4267.69 crores as at March 312021 and total revenue of Rs 1671.31crores for the year ended on that date as consideredin the standalone financial statements. The financial statements/financial information ofthese branches have been audited by the branch auditors whose reports have been furnishedto us and our opinion in so far as it relates to the amounts and disclosures included inrespect of these branches is based solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government in terms of Section 143(11) of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purposes of our audit of theaforesaid financial statements.

b) In our opinion proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books;

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statementand Statement of Changes in Equity dealt with by this report are in agreement with thebooks of account;

d) In our opinion the aforesaid financial statements comply with the Ind ASspecified under Section 133 of the Act read with the companies (Indian accountingStandards) Rules 2015 as amended;

e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated5 June 2015 issued by the Ministry of Corporate Affairs Government of India provisionsof sub-section (2) of Section 164 of the Act are not applicable to the Company;

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g) As per Notification number G.S.R. 463 (E)dated 5th June 2015 issued byMinistry of Corporate Affairs section 197 of the Act regarding remuneration to directoris not applicable to the Company since it is a Government Company.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. There are pending litigation including matters relating to sales tax customduty and excise duty which are disclosed as contingent liability – refer to Note 34and 36 to the standalone financial statements the impact of the same is unascertainableas the matters are sub-judice.

ii. The Company is not having any long-term contracts including derivativecontracts for which there were any material foreseeable losses; and

iii. The Company has not transferred Rs 0.66 lakhs to the Investor education andprotection fund.

3. As required by CAG of India through directions issued under Section143(5) ofthe Act 2013 we give our report in the attached "Annexure C".

Annexure- A To the Independent Auditor's Report on the Financial Statements of The MMTCLIMITED.

Refer to in Paragraph 4 under "Other Legal and Regulatory Requirement" wefurther report that:

1. In Respect of Fixed Asset

i. The Company has maintained proper records in respect of its fixed assetsshowing full particulars including quantitative details and situation of fixed asset.

ii. Based on the physical verification reports produced before us in ouropinion the said assets have been physically verified by the management at reasonableintervals except fixed assets provided to officials of Ministry of Corporate Affairs.However reconciliation of physical verification with fixed assets register has not beendone by the management in Mumbai and Corporate Office books.

iii. Title deeds of immovable property are held in the name of the companyexcept in the case mentioned below:

Region/Office Asset Description Gross Value (In Rs.) Area Remarks
Corporate Office Leaesehold Land (Scope) 1.04 Crore - Lease Deed is in the name of scope
Office Building (Scope) 5.74 Crore which is yet to be executed in favour of the company

Further 36 title deeds has been deposited with Hon'ble High Court in respect ofdispute with Anglo American Metallurgical Coal Pte Limited.

2. In Respect of Inventory

i. As explained to us the inventories have been physically verified during theyear by the management.

ii. In our opinion and according to the information and explanation given to usno material discrepancies were noticed during the course of physical verification.

iii. In our opinion and according to the information and explanation given tous the procedure the procedure of physical verification of inventories followed by themanagement needs to be strengthen in relation to the size of the MMTC Limited and thenature of its business.

3. Loans to parties given to parties covered under section 189-Refer noteno-36(c)

The company has granted unsecured loan to one of its joint venture company NeelachalIspat Nigam Limited.

i. In our opinion and according to the information and explanation given to usterms and conditions on which loan has been granted is not prejudicial to the interest ofthe company.

ii. According to the information and explanation given to us payment terms ofloan and interest were revised by the Board by granting extension and enhancing creditfacility for which a fresh agreement is yet to be entered.

iii. According to the information and explanation given to us and in consequenceto extension of credit facility extended for which agreement is yet to be entered we areunable to comment upon the amount overdue if any as on balance sheet date.

4. Compliance of Provision of Section 185 and 186 of the Companies Act 2013 inrespect of loans guarantees and securities

In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.

5. Acceptance of Deposits

According to the information and explanations given to us the Company has not accepteddeposits as per the directive issued by the Reserve Bank of India and the provision ofSection 73 to 76 or any other relevant provision of the Act and the rules framed thereunder.

6. Maintenance of Cost Records

As explained to us maintenance of cost records has not been prescribed by the CentralGovernment for the Company under Section 148(1) of the Act.

7. Undisputed & Disputed Statutory Dues i. According to theinformation and explanations given to us and as per the records verified by us the

Company has been regular in depositing undisputed statutory dues including Income TaxProvident Fund dues Professional Tax Value Added Tax and Service Tax with theappropriate authorities. ii. There were no undisputed amount payable in respect ofIncome Tax Provident Fund dues Professional

Tax GST Value Added Tax and Service Tax and other statutory dues in arrear as at 31stMarch 2021 for more than six months from the date they became payable except the amount ofdemand raised by CPC (TDS) from the year 2007-08 to 2018-2019 for Rs 274760 inBhubaneshwar division and Rs. 444220 in Corporate Office division.

iii. In case of dues of Income Tax or sales tax or service tax or duty of customor duty of excise or value added tax or cess which have not been deposited on account ofany dispute are attached as "Annexure I".

8. Loans from Banks/Financial Institutions/Government/Debentures

According to the information and explanations given to us and as per the recordsverified by us the Company has defaulted in repayment of loans or borrowings to afinancial institution bank Government or dues to debenture holders as per detailsattached in "Annexure II".

9. Proceeds of Public Issue(including debt instruments)/Term Loans

According to the information and explanations given to us and as per the recordsverified by us the Company has not raised any money during the year throughinitial/further public offer (including debt instruments). Term loans raised by thecompany during the year have been utilized for the purpose for which they were obtained.

10. Frauds on or by the Company

According to the information and explanations given to us and based on the auditprocedures performed in accordance with the generally accepted auditing practices inIndia we have neither come across any instance of fraud on or by the company or itsofficers noticed or reported during the year nor have we been informed of such case bythe management.

11. Managerial Remuneration

As per notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry ofCorporate Affairs Government of India Section 197 of Companies Act 2013 is notapplicable to the Company. Accordingly paragraph 3(xi) of the Order is not applicable tothe Company.

12. Nidhi Companies

In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of paragraph 3(xii) of theOrder are not applicable to the Company.

13. Related Party Transactions

According to the information and explanations given during the course of ourverification in our opinion all transactions with the related parties made by theCompany are in compliance with section 177 and 188 of the Act where applicable and therelevant details in respect of such transactions have been appropriately disclosed in thestandalone Financial Statements under Ind As-24 – "Related PartyDisclosures" specified under Section 133 of the Act read with relevant rules.

14. Preferential Issue

According to the information and explanations given to us and based on our examinationof records the company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. Accordingly theprovisions of paragraph 3(xiv) of the Order are not applicable to the Company.

15. Non-Cash Transactions with Director's etc.

As per the information's and explanations provided to us during the year the Companyhas not entered into any non-cash transactions with directors or persons connected withthe directors within the purview of section 192 of the Act are not applicable.Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

16. Provision of 45-IA of the Reserve Bank of India Act1934

According to the information and explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934. Accordinglyparagraph 3(xvi) of the Order is not applicable to the Company.

Annexure "I"to Clause 7 (iii) of Annexure A to Independent Auditors' Reporton the Standalone Financial Statements of MMTC Limited

Mumbai Region

Nature of Statute Nature of Dues Year Amount Involved Amount Deposited Authority
Bombay Sales Tax Act Sales Tax 1989-90 150106778 500000 500000 Jt. Comm. Of Sale tax (Appeal IV)
Bombay Sales Tax Act Sales Tax 1990-91 233546478 Jt. Comm. Of Sale tax (Appeal IV)
Bombay Sales Tax Act Sales Tax 1991-92 3298738 400000 Jt. Comm. Of Sale tax (Appeal IV)
Bombay Sales Tax Act Sales Tax 2001-02 4503961 - Jt. Comm. Of Sale tax (Appeal I)
Bombay Sales Tax Act & Central Sales Tax Act 1956 Sales Tax 2004-05 4200789 - Jt. Comm. Of Sale tax (BST Appeals)
Maharashtra VAT 2002 Sales Tax 2008-09 1304722 71495 Maharashtra Sales Tax Tribunal
Maharashtra VAT 2002 Sales Tax 2007-08 0** - Maharashtra Sales Tax Tribunal)
Maharashtra VAT 2002 Sales Tax 2010-11 4501471 278400 Maharashtra Sales Tax Tribunal
Maharashtra VAT 2002 Sales Tax 2009-10 1722430 94380 Maharashtra Sales Tax Tribunal
Maharashtra VAT 2002 Sales Tax 2011-12 0* - Jt. Comm. Of Sale tax (Appeal VI)
Maharashtra VAT 2002 Sales Tax 2013-14 1329839 72921 Jt. Comm. Of Sale tax (Appeal VI)
Central Sale Tax1956 Sales Tax 2011-12 4825144* 100000 Jt. Comm. Of Sale tax (Appeal VI)
Central Sale Tax1956 Sales Tax 2008-09 5181979 - Maharashtra Sales Tax Tribunal
Central Sale Tax1956 Sales Tax 2007-08 7197308 - Maharashtra Sales Tax Tribunal
Central Sale Tax1956 Sales Tax Custom 2014-15 763905 405793 Jt. Commissioner of sales tax (Appeal VI)
Custom Act1962 Act 2012-13 239853708 239853708 Commissioner of Customs

*Both Appeals are filed with same appellate authority for common issue.

**Filed Second appeal for seeking more refund than granted in 1st appeal.

Chennai Region

Nature of Statute Nature of Dues Year Amount Authority
TNGST Act Sales Tax Penalty & Interest 2001-02 178566 (SPANDEX YARN) Assistant Commissioner of Commercial Taxes
TNVAT Act VAT & Penalty 2008-09 35508765 (DUN PEAS) Jt. Commissioner of Commercial Taxes Appeals

Vizag Region

Nature of Statute Nature of Dues Year Amount Authority
APGST* APGST 1968-69 1856325 STAT HYD
APGST* APGST 1985-86 2505806 STAT VIZAG
APGST* APGST 1989-90 479000 STAT
APGST* APGST 1991-92 1934139 AC LTU
APGST* APGST 1997-98 2527960 STAT VIZAG
CST** CST 1994-95 841695 AC LTU
CST** CST 2007-08 104614 ADC
VAT APVAT 2013-14 2263563 ADC
CST CST 2013-14 410662 ADC
VAT APVAT 2014-15 417000 ADC
Customs Duty Customs Duty 2009-10 9292463 CESTAT Hyderabad

*Out of the disputed amounts relating to APGST/VAT/CST the RO has deposited a sum ofRs. 9870324/- with the respective authorities.

**Out of the disputed amounts relating to Custom duty the RO had deposited a sum of Rs.7607136/- with the respective authorities.

Kolkata Region

Nature of Statute Nature of Dues Year Amount Authority
Central Sales Tax1956 Sales Tax 2005-06 1017873 Appellate Board
Central Sales Tax1956 Sales Tax 2013-14 4607728 Calcutta High Court
WB Value Added Tax Act West Bengal
2003 VAT 2013-14 5146313 Calcutta High Court

Hyderabad Region

Nature of Statute Nature of Dues Year Amount Authority
CST Central Sales Tax 1989-90 149770 STAT
APGST Central Sales Tax 1991-92 2402576 STAT
APGST Sales Tax 1992-93 1396269 STAT-VIZAG
APGST Sales Tax 1993-94 1762687 STAT-VIZAG
APGST Sales Tax 1993-94 630615 STAT-VIZAG
CST Central Sales Tax 1993-94 441446 STAT-VIZAG
CST Central Sales Tax 1994-95 204081 AC LTU
CST Sales Tax 1997-98 5843100 STAT-VIZAG
CST Sales Tax 1999-00 3904454 STAT-VIZAG
CST Sales Tax 2000-01 252926 STAT-VIZAG
VAT VAT 2006-07 676058 AC LTUSTAT
VAT VAT 2007-08 71000 AC AUDIT
VAT VAT 2008-09 784474 STAT
VAT VAT 2012-13 9949808 ADC (CTO)
CST Central Sales Tax 2013-14 440000 STAT
APV AT-JC VAT 2013-14 2200000 APV AT-JC
CST CENTRAL SALES TAX 2014-15 633008 DC (CTO)

Corporate Office

Nature of Statute Nature of Dues Year (AY) Amount Forum
Income Tax Act Income Tax 2018-19 20996930
Income Tax Act Income Tax 2017-18 1 59 36 207 CIT(A)
Income Tax Act Income Tax 2016-17 3 24 12 680 CIT(A)
Income Tax Act Income Tax 2015-16 1 17 51 934 ITAT
Income Tax Act Income Tax 2014-15 1 55 24 136 ITAT
Income Tax Act Income Tax 2013-14 3 34 92 278 ITAT
Income Tax Act Income Tax 2011-12 91 77 995 ITAT
Income Tax Act Income Tax 2010-11 2 57 474 ITAT
Income Tax Act Income Tax 2009-10 8 06 98 915 ITAT
Income Tax Act Income Tax 2008-09 1 44 83 413 CIT(A) / Sup. Court
Income Tax Act Income Tax 2005-06 4 51 65 330 Sup. Court
Income Tax Act Income Tax 2004-05 3 58 34 174 ITAT
Income Tax Act Income Tax 2003-04 1 08 96 834 ITAT
Income Tax Act Income Tax 2001-02 1 17 77 218 High Court
Income Tax Act Income Tax 2000-01 1 16 64 510 High Court
Income Tax Act Income Tax 1999-00 2 85 69 897 ITAT
Income Tax Act Income Tax 1998-99 58 90 533 ITAT
Income Tax Act Income Tax 1997-98 50 22 928 ITAT
Income Tax Act Income Tax 1996-97 3 73 75 477 ITAT
Total 426928865

Out of the above demand an amount of Rs. 204510551 has been deposited by thecompany.

Delhi Region

Name of Statute Nature of Dues Year Amount Authority
UP-VAT LST/CST 1990-91 617588 Moradabad Allahabad High Court
UP-VAT LST 1991-92 470578 Moradabad Allahabad High Court
UP-VAT LST 1992-93 264037 Moradabad Allahabad High Court
UP-VAT LST 1993-94 185100 Moradabad Allahabad High Court
UP-VAT LST 1987-88 1635160 Joint Commissioner (Appeals) Kanpur
UP-VAT VAT 1996-97 611808 Commissioner (Appeals) UP-VAT
UP-VAT VAT+ Interest for non- submission of Form-3B (Gold)& Non-submission of Form 3C1 (Mentha Oil) 2007-08 62457 Commissioner (Appeals) UP-VAT
Haryana VAT LST 1992-93 424587 Faridabad Punjab & Haryana High Court Chandigarh
MP-VAT LST 1999-00 150004 Sales Tax Authority Indore
MP-VAT LST 1998-99 4730692 Assessing Authority Indore
Custom & Central Excise Customs Duty & Interest on non-export of Gold Jewellery against Gold Loan by Associates 1999-00 27267919 Pending before Hon'ble Delhi High Court as per directions of Hon'ble Supreme Court of India.

Jaipur Region

Nature of Statute Nature of Dues Year Amount
Rajasthan Sales Tax Act Sales Tax 2003-04 14946540 Authority Rajasthan Kar Board Ajmer. (Rs. 35.49 lacs have been deposited under protest). Sales Tax Dept. has appealed against the order of DC (Appeals) in Kar Board. Next date of hearing is 15/07/2020.
Rajasthan Sales Tax Act Sales Tax 1999-00 2607605 Rajasthan Kar Board Ajmer. Pending with Kar Board against demand on account of 4767 MT DAP u/s 84 of RST Act. Next date of hearing is 14/06/2020.
Income Tax Income Tax 2009-10 to 2017-18 23030 TDS Demand
Income Tax Income Tax 2018-19 1330 TDS Demand
Income Tax Income Tax 2020-21 590 TDS Demand

* Total amount deposit under protest Rs. 3549446.

Bhubaneswar Region

Nature of Statute Nature of Dues Year Amount Authority
OST Act OST 1977-78 4195457 SLP Filed in Supreme Court
OAST Act OAST 1977-78 209773 SLP Filed in Supreme Court
OST Act OST 1979-80 5432092 SLP Filed in Supreme Court
OAST Act OAST 1979-80 300090 SLP Filed in Supreme Court
OST Act OST 1980-81 13021518 SLP Filed in Supreme Court
OAST Act OAST 1980-81 653245 SLP Filed in Supreme Court
OST Act OST 1981-82 1518451 SLP Filed in Supreme Court
OAST Act OAST 1981-82 327928 SLP Filed in Supreme Court
Orrisa Sales Tax Interest Penalty 1978-79 2650388 High Court of Orissa
Orrisa Sales Tax Odisha Sales Tax 1978-79 3400919 High Court of Orissa
Orrisa Sales Tax Odisha Sales Tax 1978-79 170046 High Court of Orissa
Orrisa Sales Tax Interest Penalty 1979-80 653452 High Court of Orissa
Orrisa Sales Tax Central Sale Tax 1982-83 3483020 High Court of Orissa
Orrisa Sales Tax Interest 1978-79 35742030 Reply Flied Before DCCT as per HC direction
Orrisa Sales Tax DEPB 2006-09 149822308 Odisha Sales Tax Tribunal
Orrisa Sales Tax DEPB 2010-12 50843080 High Court of Orissa
OVAT Value Added Tax 2013-14 142818841 Odisha Sales Tax Tribunal
CST (Odisha) Central Sale Tax1956 2013-14 580705822 Odisha Sales Tax Tribunal
ET (Odisha) Entry Tax 2013-14 526310091 Odisha Sales Tax Tribunal
CST (Odisha) Declaration Form Issue 2011-14 7579583 Odisha Sales Tax Tribunal
CST (Odisha) Sales Tax 2015-16 948103 Odisha Sales Tax Tribunal
Central Excise Act Service Tax 2003-05 47854163 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act Service Tax 2003-07 226228349 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act Service Tax 2007-08 50215256 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act Service Tax 2008-10 103325317 Customs Excise & Service Tax Appellate Tribunal
Central Excise Act Service Tax 2010-11 58609553 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2011-12 58453943 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2009-12 499950599 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2009-11 11380588 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2012-13 5647089 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2012-13 67192937 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2013-14 994263 Customs Excise & Service Tax Appeallate Tribunal
Central Excise Act Customs 2012-13 1490287737 Customs Excise & Service Tax Appeallate Tribunal
Central Excise Act Service tax 2014-15 1771628 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise & Custom Act Service Tax 2015-16 5954842 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise & Custom Act Custom Interest and penalty 2017-18 132576 Commissioner of customs Excise & Service Tax Bhubaneswar
Central Excise Act Service Tax 2017-18 18315 Dept Filed Appeal

Ahmadabad Region

Nature of Statute Nature of Dues Year Amount Authority
Custom Act 1962 Differential Custom Duty 2012-13 178324573 CESTAT Chennai

Annexure "II"to Clause 8 of Annexure A to Independent Auditors' Report on theStandalone Financial Statements of MMTC Limited

Particulars

Amount of Default as on Balance Sheet Date

Maximum Period of Default (in days)

Name of the lenders Banks: Principal (Rs.) Interest (Rs.) Principal Interest
Bank of Maharashtra 1600000000 94184941 199 182
Punjab & Sind Bank 2300000000 127195194 196 182
Punjab National Bank 5000000000 250670473 93 182
Indian Bank (erst. Allahabad Bank) - Term Loan Repayable in 12 equal quarterly installment of Rs.
16.67 cr. Due from 31.12.2020 166700000 102317700 90 182
Union Bank of India (erst. Corporation Bank) 5000000000 215380335 38 182
Grand Total 14066700000 789748643

Annexure B to the Independent Auditor's Report of even date on the Standalone FinancialStatements MMTC Limited

Report on the Internal financial Controls under section 143(3)(i) of the CompaniesAct2013("the Act")

We have audited the internal financial controls over financial reporting of MMTCLimited ("the Company") as of March 31 2021 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the "Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial of the company reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

An audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that:

a) Pertain to the maintenance of records that in reasonable detail accuratelyand fairly reflect the transactions and dispositions of the assets of the company;

b) Provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and c)Provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India"

For M.L. Puri & Co.
Chartered Accountants
FRN: 002312N
Place: New Delhi CA R.C. Gupta
Date: 27.10.2021 Partner
UDIN:21095584AAAALG7320 M.No.095584

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