Date and Nature of Query

MMTC Limited issued this communication on June 25, 2026, in response to an email from the National Stock Exchange of India Ltd (NSE) dated June 24, 2026. The query, addressed to Mr. Daniel Dsouza, raised several issues concerning the submission of the company's financial results and accompanying documents for the financial year ended March 31, 2026.

Company’s Clarification on Submission Issues

The company provided point-by-point clarifications for the discrepancies noted by the NSE:

1. Statement of Impact of Audit Qualifications: The company stated that the document had already been submitted in both PDF and XBRL formats. A delay was attributed to a medical emergency of the Chairperson of the Audit Committee. The submission acknowledgment numbers provided were:

  • Announcement: 2026/Jun/387435/8084
  • XBRL (Standalone): 167311
  • XBRL (Consolidated): 167312

The document was signed by the CFO, Director (Marketing), Chairperson of the Audit Committee, Statutory Auditors, and the CMD.

2. Machine Readable Form / Legible Copy: The company confirmed that this was submitted immediately upon receiving the query from the exchanges.

3. Timely Submission of Financial Results: The company cited technical issues with the NSE website as the reason for not submitting the results within the stipulated 30 minutes/3 hours after the board meeting. The results were instead emailed to takeover@nse.co.in within the 3-hour window and were submitted on time to the BSE.

4. XBRL Discrepancy - Consolidated EPS Mismatch: A typing error was identified in the yearly EPS figure within the Consolidated XBRL filing. A revised XBRL was submitted on June 25, 2026, with a new acknowledgment number: 169228.

The company emphasized that there was no willful delay or default, as the situations were beyond its control. It also noted that DIPAM, in its CMCDC meeting on September 19, 2025, had granted MMTC an exemption from paying a dividend for FY 2025-26.

Details of Financial Results and Audit Qualification Clarification

The core of the document details a qualified opinion from the statutory auditors regarding the Anglo Coal legal case.

The Audit Qualification:

The auditors stated that the company should have recognized an additional provision of Rs. 82.82 crore related to its dispute with Anglo Coal. The total estimated liability was calculated by management at Rs. 170.58 crore as of November 17, 2025, against which only Rs. 87.76 crore was provided. The auditors argued that this understated provisions and overstated contingent liabilities by Rs. 82.82 crore, constituting a departure from accounting standards. They stated that had this amount been provided, the net profit and shareholders' funds would have been reduced by Rs. 82.82 crore.

Management's Response and Disagreement:

Management provided a detailed rebuttal, explaining its position in Annexure 2:

  • The company had already fully provided for the original deposit of Rs. 1088.62 crore made in July 2022 pursuant to Delhi High Court orders.
  • An amount of Rs. 1000 crore from this deposit was released to Anglo on November 17, 2025.
  • The calculation of a higher liability (Rs. 1169.14 crore cited in a court application) was submitted on a "provisional and without prejudice" basis based on legal advice and is not an admission of final liability.
  • Crucially, substantial accrued interest of approximately Rs. 259.74 crore had accumulated on the original deposit held by the court. Management argued that this accrued interest is sufficient to cover any additional liability (the Rs. 82.82 crore), making a probable outflow of additional company resources nil.
  • Therefore, management contends that the conditions of Ind AS 37 for recognizing a provision are not met and that disclosing the amount as a contingent liability is appropriate.

The quantified impact of the qualification, as per the submitted statement, is as follows:

Standalone Financials (Figures in Rs. Crore, except EPS):

| Particulars | As Reported | After Adjusting for Qualification |

| Turnover / Total Income | 180.58 | 180.58 |

| Total Expenditure | -282.72 | -199.90 |

| Net Profit/(Loss) | 212.07 | 129.25 |

| Earnings Per Share (Rs.) | 1.41 | 0.86 |

| Total Assets | 2374.28 | 2374.28 |

| Total Liabilities | 2374.28 | 2374.28 |

| Net Worth | 1699.13 | 1616.31 |

Consolidated Financials (Figures in Rs. Crore, except EPS):

| Particulars | As Reported | After Adjusting for Qualification |

| Turnover / Total Income | 180.58 | 180.58 |

| Total Expenditure | -282.72 | -199.90 |

| Net Profit/(Loss) | 387.38 | 304.56 |

| Earnings Per Share (Rs.) | 2.58 | 2.03 |

| Total Assets | 2795.87 | 2795.87 |

| Total Liabilities | 2795.87 | 2795.87 |

| Net Worth | 2120.72 | 2037.90 |