MMTC Q2 FY27 Net Profit at ₹9.47 Crore

Review Type: Limited Review
Conclusion: Qualified Conclusion
Basis for Qualification: The auditors highlight a departure from Indian Accounting Standard (Ind AS) 37 regarding the Anglo Coal matter. The company has not recognized an estimated liability of ₹82.82 crore, considering it contingent. The total estimated obligation payable to Anglo Coal is ₹170.58 crore (including interest up to 17.11.2025), against which a provision of only ₹87.76 crore exists in the books. Had the ₹82.82 crore been provided, provisions would be higher and Other Equity lower by the same amount.
Emphasis of Matter: The Audit Committee could not be constituted due to the non-appointment of Independent Directors, whose appointment rests with the Government of India. Consequently, the financial results were reviewed and approved directly by the Board of Directors.
Other Matter: The review report references qualified conclusions and opinions issued by the predecessor auditor on previous periods' results.

A decree in favor of Anglo Coal has attained finality. The Hon'ble Supreme Court dismissed MMTC's Special Leave Petition on 03.11.2025.
Pursuant to Hon'ble Delhi High Court orders, an amount of ₹1,000.86 crore (₹1,000.00 crore + ₹0.86 crore) was released to Anglo Coal on 17.11.2025.
The remaining issues pending before the Hon'ble Delhi High Court (as of order dated 09.01.2026) are: (i) whether tax is to be deducted at source on the awarded amount, and (ii) the date relevant for applying the exchange rate.
The next date of hearing is scheduled for 03.12.2026.
The company's provisional calculation indicates a total estimated liability of ₹170.58 crore (including interest up to 17.11.2025).
The company has not provided for the differential ₹82.82 crore, as management believes interest accrued on the amount previously deposited with the court (approximately ₹259.73 crore up to 17.11.2025) is available for adjustment against any additional liability determined by the court.
Vide order dated 07.10.2026, the Hon'ble Delhi High Court permitted MMTC to lease certain properties, with the entire proceeds (less TDS) to be deposited with the Court Registrar within 7 days of receipt.

Voluntary Retirement Scheme (VRS): The company introduced a VRS on 09.09.2026. Applications from 38 employees were accepted, and 23 were relieved on 30th October 2026. The estimated expense is ₹20 crore, which will be accounted for in the subsequent quarter (Q3 FY27).
Exceptional Items: Include a payment of ₹5.43 crore to Chennai Port Authority (ChPA) made on 17.07.2026 as per a dispute resolution mechanism decision.
Subsidiary/JV Consolidation: The consolidated results do not include the financials of:
Wholly-owned subsidiary MMTC Transnational Pte. Ltd., Singapore (under liquidation, investment fully provided for).
Joint Ventures MMTC Gitanjali Limited, Sical Iron Ore Terminal Ltd., and Free Trade Warehousing Pvt. Ltd. (financial results not received, investments fully provided/impaired).
Deferred Tax Assets: Not recognized on carry forward losses and timing differences due to uncertainties.
Advance to CPF Trust: An advance of ₹40 crore was given for VRS payments. ₹35.50 crore was repaid by 31.03.2026, ₹3.56 crore was adjusted, and the balance ₹0.94 crore was repaid on 10.09.2026. Interest of ₹0.01 crore was accounted for in Q2 FY27.

MMTC is a Government of India Enterprise under the Ministry of Commerce & Industry.
All Directors, including Independent Directors, are appointed by the President of India via the administrative ministry.
The company has no control over the appointment process.
Consequently, an Audit Committee could not be formed due to the absence of Independent Directors.